What does 'corporate governance' refer to in the context of mergers?

In the context of mergers, 'corporate governance' specifically refers to the framework of rules, practices, and processes that dictate how a company is directed and controlled. This encompasses the relationships between the various stakeholders involved, including the board of directors, management, shareholders, and any other parties with a vested interest in the company.

Effective corporate governance is crucial during and after a merger as it influences decision-making processes, accountability, and the overall strategic direction of the combined entity. It ensures that the interests of all stakeholders are balanced and aligned, which can directly affect the success of the merger in achieving its desired outcomes.

Additionally, while operational efficiency, financial management, and shareholder voting rights are important aspects of a merged company, they are components or implications of the broader corporate governance structure, rather than its definition. Therefore, focusing on the comprehensive rules and structures that guide a company's governance fully encapsulates the essence of corporate governance in the merger context.