Strategic Regulatory Innovation: Mechanisms for Enhancing Corporate Financial Governance in the United States.

Abstract

This article discusses the importance of developing strategic regulations to improve corporate financial governance in the United States. Regulatory failures have persisted for a long time, as seen in the 2008 financial crisis and the FTX scandal. Traditional compliance-based models have failed to address systemic risks and market complexity. The paper advocates for a cohesive methodology that synchronizes legal frameworks with strategic foresight methodologies, including risk-based planning, stakeholder accountability, and performance metrics. It examines the flaws in the Dodd-Frank Act, suggests reforms based on corporate, trade, and commercial law, and uses examples from the U.S. and Greece to illustrate the consequences of weak regulatory strategies. It also explores how strategic management tools can facilitate proactive enforcement and strengthen institutions. The article highlights national benefits such as increased investor confidence, reduced regulatory friction, and goals aligned with inclusive economic growth. The paper concludes by urging policymakers, regulators, and financial institutions to adopt a proactive regulatory approach that integrates compliance into their business strategies. It argues that the U.S. can improve its financial stability, promote greater transparency, and become a global leader in flexible and sustainable financial governance by pursuing this strategy.

Keywords: strategy, regulation, innovation, financial governance

DOI: 10.7176/JLPG/149-08

Publication date: September 30^th 2025