Changes in corporate financing and governance play a primary role in determining the long-term success and stability of any leading economy. Business financing and governance encompass a number of factors that make each business unique and critical to the overall existence of a particular company. In particular, corporate governance is responsible for corporate performance as well as the economic performance of the firm (Maher & Andersson, 1999). Perhaps, one of the most common and noticeable variations between business financing and corporate governance systems is the difference in ownership and regulation of particular businesses existing within a specific region or country. Distinct corporate governance systems can be differentiated based on the scope of ownership and influence of the firm and the individuality of controlling shareholders ( Maher & Andersson, 1999 ). In this way, the latter brings out the reality of variations in the financing and corporate governance of enterprises as a crucial component of the enterprise, and whose contribution to long-term success and stability cannot be denied. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Financial markets and corporate governance, as well as investor confidence, trace their roots to the late 1990s and have quickly established themselves as a primary issue component of corporate operations. Fundamentally, US financial markets are characterized by widespread ownership structures, whereby more than 100 million citizens of all levels participate in the capital markets. Such ownership structures are therefore affected by the typical agency problems of separating decision-making control assigned to management and ownership control retained by a broad range of shareholders ( Rezaee, 2007 ). Additionally, nearly half of all U.S. households participate in the securities markets through investments in public and private company stocks, pensions, and mutual funds. Consequently, following the failure of corporate and financial management of large corporations such as WorldCom and Enron, the aspect of financial and corporate governance has taken a central role in determining the long-term stability of major economies, especially during the fall of this giant corporate establishments (Rezaee, 2007). As a result of the impact that the two aspects have in companies, numerous studies have been conducted by academics with the application of a variety of models. For example, the literature on relative corporate governance generally considers two primary systems that tend to explain the emergence of differences in the legal protection of property rights: in countries such as the United States and the United Kingdom which can be defined as having common laws , the courts have successfully managed to safeguard the rights of investors, thus leading to a more concerted mandate and regulation (Daidj, 2017). This is mainly attributed to the Anglo-Saxon model, which maintains shareholder value. However, different countries have financial systems and corporate governance that exhibit distinct characteristics, which differentiate them from the building blocks of other nations. This paper addresses the issue of corporate financing and governance and the impacts they have on achieving long-term success. and stability, particularly in major economies, in an effort to examine the extent to which they impact. Additionally, the paper will focus on how various frameworks and models impact growtheconomy, the development of stock markets, innovation and the creation of an active SME segment. Accordingly, the paper will address the dominance of Anglo-Saxon systems in the US and UK, as well as the successes and failures of different systems, trends and influences of financial crises. Literature Review The aspect of corporate governance has been established to have its roots in the USA and the UK. It initially addressed a relatively limited number of issues, in particular how stakeholders could monitor and motivate management to address their interests and shareholder value. In this way, the corporate governance of companies can be based on two pillars: the ability of owners to monitor and intervene in operations whenever the need arises, and the strength of corporate control in various markets (Koen, 2005). Accordingly, Bratton and McCahery (1999) postulate that in these times, corporate law poses a great concern as to whether or not there is an overall system of corporate governance, which has a comparative economic advantage. This was mainly attributed to the fact that there was increased competition in relation to corporate governance. Indeed, it is argued that US observers during the early 1900s depended on Japanese systems of government and practices for guidance on how to carry out reforms to their pre-existing systems of government. Therefore, its contribution to success and stability is deeply rooted in ancient times (Bratton & McCahery, 1999). Business financing is crucial for the development, long-term success and stability of the respective businesses. Mullineux (2007) states that since the early 1970s several nations have experienced significant liberalization of banking systems and have experimented with some forms of financial innovation. This is attributed to the re-regulation of financial institutions, which apparently serves as the pillar of every nation's financial systems. They serve as the backbone of the country's economy (Mullineux, 2007). For example, the GDP of the services trade of the United States of America in 2006 exceeded 1 trillion dollars, thus representing 8.1% of the overall GDP of the United States, while the security industries accounted for over 175 billion of US dollars, or approximately 17% of the total. the US financial market, and finally the financial sector employed nearly 6 million people by 2005, which corresponded to at least 5% of the overall private sector service (Rezaee, 2007). Changes in business financing greatly influence long-term success and stability because they include several other factors such as improving the allocation of a limited investment resource, facilitating public companies to raise the money needed to expand businesses, and guarantee of financial equity for individual investors. invest your capital (Rezaee, 2007). Furthermore, several publications conducted since the mid-1990s have attempted to understand existing global variations in corporate governance primarily by establishing the relationship between what is involved in leading different companies. In this way, sit distinguishes two models relating to corporate governance. The Anglo-Saxon model of corporate governance is used to describe shareholder value as the main objectives of a company and that only shareholders enjoy strong and solemn relationships with senior management (Koen, 2005). Some of the key features of this financing and corporate governance model include stringent accounting and transparency requirements, financial institutionsthey only have the mandate to manage the operations of the enterprise, it presents the board of directors as internal supervisors and there are multiple incentives for managers (Gaur, 2018). Consequently, the Rhineland model, also known as the bank-based model, requires every member of the enterprise to make a vital contribution to the enterprise. Employees, suppliers, customers and communities are taken into account in decision-making and their interests are represented in governance and financing. The two models have been used effectively to gain access to various financial markets (Koen, 2005). While financial and governance dynamics are set to change significantly, there are theories such as agency theory, comparative case studies and institutional theory which seeks to exploit alternative governance systems and changing dynamics as well as explore the implications it has on the long-term success and stability of a business (Yoshikawa & Phan, 2001). Agency theory attempts to address the complications that arise in consensual associations whenever the goals of a principal and a representative conflict, and whenever it is relatively difficult or costly for the principal to authenticate the agent's commitments. Basically, it seeks to provide solutions and thus keep the company focused on achieving stability and success (Yoshikawa & Phan, 2001). Institutional theory, on the other hand, is a framework that emphasizes that firms attempt to integrate standards into their institutional contexts so that they can gain stability, legality, better survival projections, and resources. Fundamentally, didactic theory rejects rational choice and instead places greater emphasis on the legality of the enterprise such that governance depends on rules, examples, and belief systems (Yoshikawa & Phan, 2001). Finally, the comparative case creates the relationship between two companies mainly to understand the competitiveness of the products. Case examples encourage the adoption of strategies that aim to give a particular company a competitive financial and governance advantage (Yoshikawa & Phan, 2001). As a result of globalization, there is a trend of convergence of corporate governance practices across the world. According to Chatterjee (2014), the Anglo-American model of corporate governance is gaining popularity compared to other corporate governance models, thus influencing other governance systems to initiate changes towards this model. The Anglo-American model places more emphasis on the interests of shareholders than the interests of the organization's other stakeholders. Variations in economic growth rates between different countries have played an important role in influencing decisions to reform governance systems towards the Anglo-American governance system. For example, when the American economy was growing strongly between 1990 and 2000, the economies of European countries and Japan were stagnating. This difference in the growth rate of the American economy and the Japanese and European economies was attributed to differences in governance systems and the solution to correct the stagnation was to adopt the Anglo-American system (Chatterjee, 2014). , the decline in the performance of industries in Britain during the same period has been attributed to personal capitalism widely used in managerial enterprise (Baumol et. al., 1994). This is despite the fact that the highest performing managers and leaders in America as well as Germany used managerial capitalism, which was more effective than personal capitalism. The personal capitalism governance system is a system whereby the owners of the organization are given powerto control the decision-making process relating to the allocation of resources and the making of strategic decisions. The owners of the organizations, therefore, controlled the day-to-day management of the organizations (Baumol, et. al., 1994). The poor outcomes associated with personal capitalism have necessitated reforms of the government system to adopt the managerial capitalism used in the American economy. Further evidence reveals that there is also a change in the type of boards of directors in both Japanese companies and German firms to adopt the single-tier model of the US board of directors. American boards of directors are generally small in terms of the number of directors and include both independent outside and internal directors. The inclusion of both independent external directors and internal directors as opposed to previous types of boards consisting of internal directors only ensures that the interests of all stakeholders have been sufficiently protected.protected. Ownership concentration has also decreased significantly over time in German companies, which indicates that companies are emulating American companies (Lonien, 2003). The history of research and development in the United States can be traced back to the time when the United States was founded. The United States has several government programs established to support research and development in the country. The discoveries made by scientific research and the technical applications that have been developed through research and development have been recognized as crucial pillars for the development and good performance of US companies (Brown et. al., 2005). Other countries such as Germany, Japan, Denmark and Finland have also invested significantly in research and development, which has played an important role in stimulating the prosperity of companies within these countries. As a result, other countries are also focusing on allocating more resources to research and development in an effort to boost the performance of companies within the countries. This indicates a convergence in terms of the importance of research and development for a country between the United States and other countries around the world (Sánchez-Rydelski, 2006). The financial sector before the 1990s was characterized by few financial instruments and fewer resources. develop a legal and regulatory framework. Some countries such as China, Korea, and Japan had the perception that a country's economy should evolve away from a bank-centric financial system (New York: Columbia University Press, 2013). This belief was in contradiction to the United States, which believed that the economy should grow towards a more bank-centric economy. After the 1990s, more financial instruments were used due to the creation of a more elaborate legal and regulatory framework. This was followed by deregulation of the financial sector which led to the collapse of the US economy in 2008 and 2009, when large financial institutions collapsed. Financial institutions in countries reluctant to engage in risky financial activities such as Japan were less affected by the collapse of the US financial system (Senanayake, 2010). After the 2008 financial crisis, stricter regulatory measures were taken to monitor the activities of financial institutions. This was done in an attempt to prevent bad behavior by some financial institutions that could lead to a crisis similar to that experienced in 2008. Despite the fact that financial institutions in Japan, China and Korea were less affected by the crisis , are heavily affected. through misallocation of resources, unlike.183-205.