Impact of Corporate Governance Changes on Regulatory Mechanisms

A publicly traded company, XYZ Corp, has recently faced scrutiny regarding its lack of transparency in financial disclosures and executive compensation practices. In light of these issues, the board of directors has proposed implementing a new corporate governance policy to address shareholder concerns and enhance regulatory compliance. The policy includes stricter requirements for financial reporting, the establishment of an independent audit committee, and a mandate for full disclosure of executive compensation packages.

Which of the following regulatory mechanisms would be most directly affected by these changes?