scholarly journals The Role of Information and Financial Reporting in Corporate Governance and Debt Contracting

2010 ◽  
Author(s):  
Chris S. Armstrong ◽  
Wayne R. Guay ◽  
Joseph Peter Weber
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Debt Contracting ◽  
Role Of Information

scholarly journals Internal Control Weakness: A Literature Review

2019 ◽  
Vol 8 (2) ◽  
pp. 121
Author(s):  
Yu Lu ◽  
Diandian Ma
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Insider Trading ◽  
Internal Control ◽  
Capital Market ◽  
Information Quality ◽  
Empirical Literature ◽  
Affecting Factors ◽  
Debt Contracting

The purpose of this essay is to review empirical literature on internal control weakness over the past seven years. I use an analysis framework consisting of determinants (corporate governance and other affecting factors) and economic consequences (accounting information quality, market reaction, cost of equity, debt contracting) of weakness disclosure and its remediation. Basic findings of prior studies agree that corporate governance and firm characteristics influence the presence of control problems and their remediation. In turn, the effectiveness of internal control impacts the quality of financing reporting, auditor reaction (auditing fees and audit delays), insider trading and leads to capital market consequences (the weakness disclosures affect debt contracting). More internal control studies combine with capital market and provide evidence that SOX are not always effective. Overall, these findings contribute to profession by suggesting that the disclosures of internal control deficiencies generally convey incremental information on the quality of financial reporting to investors. This review integrates and assesses current internal control weakness research and offers some suggestions for future study.

scholarly journals Corporate Governance Practices In Selected Indian Financial Institutions

2012 ◽  
Vol 5 ◽  
Author(s):  
Suman Kalyan Chaudhury ◽  
Sanjay Kanti Das ◽  
Devi Prasad Mishra
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Financial Institutions ◽  
Financial Reporting ◽  
Vital Role ◽  
Key Factors ◽  
Additional Information ◽  
Governance Practices ◽  
Increasing Demand

It has been realized that Corporate Governance is vital for better management of any organization. Financial reporting and disclosure of any information are the key factors of corporate governance. Financial Institutions are no exceptions and there has been increasing demand for transparency in functioning of these Institutions in view of several scams.In this paper a modest effort is made to discuss the reporting pattern of India’s twelve financial institutions namely SBI, IDBI, SIDBI, IFCI, NABARD, PNB, UBI, BOB, BOI, KMB, NHB and HDFC. Top Six commercial banks namely (SBI, BOB, PNB, KMB UBI & BOI), six developments banks viz. SIDBI, IFCI, HFDC, IDBI, NHB, and NABARD  are selected under study .The rationale for selection of these institutes is that being incorporated organizations, they should have same Corporate Governance standards. In view of transparency in functioning, the role of different Committees has a vital role to play. Six parameters have been chosen for comparison of various corporate governance practices in all these twelve financial institutions namely, Company’s philosophy on Corporate Governance, Formation of Board of Directors, Composition of Board of Directors, Particulars of Director’s, Organizational Committees, and Additional Information supplied in CG report or in the Annual report. 

scholarly journals Secrecy, collusion and coalition building in corporate governance

2007 ◽  
Vol 4 (3) ◽  
pp. 10-24 ◽  
Author(s):  
Lee Mick Swartz
Keyword(s):  
Corporate Governance ◽  
Agency Theory ◽  
Negative Impact ◽  
Agency Cost ◽  
Coalition Building ◽  
Role Of Information

This paper studies secrecy in voting and the role of information on coalition building in corporate governance. It finds evidence that supports the coalition building hypothesis and, in part, rejects the agency cost hypothesis. The conditions for insiders and large outsiders to form coalitions are examined. The results are consistent with insiders and large outsiders cooperating and voting as a block to maintain power, this imposes costs on other shareholders. Consistent with the agency theory and the coalition building theory, management initiated amendments have a more negative impact than shareholder initiated amendments. The Vote Your Conscience theory is rejected.

scholarly journals Creative Accounting Practices at Satyam Computers Limited: A Case Study of India’s Enron

2016 ◽  
Vol 6 (6) ◽  
pp. 24 ◽  
Author(s):  
Madan Lal Bhasin
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Lessons Learned ◽  
Audit Committees ◽  
Board Members ◽  
Accounting Fraud ◽  
Creative Accounting ◽  
Depth Analysis ◽  
The Government

<p>Satyam Computers were once the crown jewel of Indian IT industry, however, the debacle of Satyam raised a debate about the role of CEO in driving a company to the heights of success and its relation with the board members and core committees. The scam brought to the light the role of corporate governance (CG) in shaping the protocols related to the working of audit committees and duties of board members. The Satyam scam was a jolt to the market, especially to Satyam stockholders.  This paper attempts an in-depth analysis of India’s Enron, Satyam Computer’s “creative-accounting” scandal. In public companies, this type of ‘creative’ accounting leading to fraud and investigations are, therefore, launched by the various governmental oversight agencies. The accounting fraud committed by the founders of Satyam in 2009 is a testament to the fact that “the science of conduct is swayed in large by human greed, ambition, and hunger for power, money, fame and glory.” Scandals have proved that “there is an urgent need for good conduct based on strong corporate governance, ethics and accounting &amp; auditing standards.” The Satyam scandal highlights the importance of securities laws and CG in emerging markets. Indeed, Satyam fraud “spurred the government of India to tighten the CG norms to prevent recurrence of similar frauds in future.” Thus, major financial reporting frauds need to be studied for ‘lessons-learned’ and ‘strategies-to-follow’ to reduce the incidents of such frauds in the future. The increasing rate of white-collar crimes “demands stiff penalties, exemplary punishments, and effective enforcement of law with the right spirit.”</p><h2> </h2>

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