2025, Vol. 5, Issue 2, Part D

In an era of expanding globalization and financial interdependence, governance systems within interconnected capital markets have become increasingly complex and pivotal to global economic stability. This study conducts a comparative analysis of governance frameworks, focusing on the evolving dynamics of shareholder intervention, sustainability mandates, and regulatory convergence across jurisdictions. At a macro level, the paper examines how corporate governance philosophies ranging from the shareholder-centric Anglo-American model to the stakeholder-oriented European and Asian systems shape decision-making, accountability, and long-term value creation. The research underscores the transformative influence of institutional investors, proxy advisory firms, and activist shareholders in driving environmental, social, and governance (ESG) integration within corporate structures. It further explores the growing adoption of sustainability mandates, highlighting the tension between voluntary corporate responsibility initiatives and binding regulatory requirements, particularly under frameworks such as the EU Sustainable Finance Disclosure Regulation (SFDR) and the U.S. SEC’s emerging ESG disclosure rules. From a cross-jurisdictional perspective, the paper identifies challenges in harmonizing governance standards amid differing legal traditions, enforcement mechanisms, and market maturity levels. Issues such as regulatory arbitrage, uneven ESG taxonomies, and cross-border shareholder rights are critically assessed to reveal gaps and opportunities for policy alignment. Ultimately, this analysis contributes to the discourse on global governance coherence by proposing a balanced, multi-stakeholder model that enhances transparency, protects investor interests, and promotes sustainable capital formation. The findings are relevant to policymakers, regulators, corporate boards, and institutional investors seeking to navigate the intricate nexus of governance, sustainability, and regulatory accountability in a globally integrated financial ecosystem.