scholarly journals Financial reporting, corporate communication and governance

2003 ◽  
Vol 1 (2) ◽  
pp. 31-37 ◽  
Author(s):  
Andrea Melis
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Corporate Communication ◽  
Governance System ◽  
Good Corporate Governance ◽  
Corporate Governance System ◽  
Positive Perspective ◽  
Anglo American ◽  
Highly Correlated

This paper describes the issues of financial reporting and corporate communication in connection with corporate governance. The analysis is based on the studies conducted in the Anglo-American and the European academic literature both from a normative and a positive perspective. It is discussed why accounting standards are not able by themselves to avoid corporate “miscommunication”, and how a good corporate governance system is a sine qua non to improve the quality of corporate communication and financial reporting. The analysis also shows how the effectiveness of the systems of financial reporting and corporate governance seems to be highly correlated.

scholarly journals The effect of governance system and degree of convergence to IFRs on the quality of financial reporting: Evidence from Asia

2015 ◽  
Vol 12 (4) ◽  
pp. 409-423
Author(s):  
Ratna Wardhani ◽  
Sidharta Utama ◽  
Hilda Rossieta
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Reporting Quality ◽  
International Standards ◽  
Financial Reporting Quality ◽  
Governance System ◽  
Governance Practice ◽  
Corporate Governance Practice ◽  
Degree Of Convergence

This research investigates the effect of governance system and degree of convergence to IFRS on financial reporting quality. With sample of Asian countries, this study concludes that country level and firm level governance systems, both at, and the degree of convergence have positive influence on financial reporting quality.The effect of degree of convergence of local GAAP to IFRS and corporate governance practice to financial reporting quality will be stronger for companies in countries with weak investor protection. Also, we find that in company with weak corporate governance practice, the adoption of international standards will increase the quality of financial reporting.The results indicate that the adoption of international accounting standard become more important in the countries and companies with weak governance system.

scholarly journals Evolution of German corporate governance (1995-2014): an empirical analysis

2019 ◽  
Vol 19 (5) ◽  
pp. 1042-1062
Author(s):  
Andreas Rühmkorf ◽  
Felix Spindler ◽  
Navajyoti Samanta
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Governance System ◽  
Content Type ◽  
Convergence Process ◽  
Corporate Governance System ◽  
Anglo American ◽  
The Stability ◽  
The Global Financial Crisis

Purpose This paper aims to address the evolution of corporate governance in Germany with a particular regard to whether there can be observed a gradual convergence to a shareholder primacy corporate governance system. Design/methodology/approach To investigate a potential shift of the German corporate governance system to an Anglo-American tiled corporate governance system, the authors have empirically assessed on a polynomial base 52 separate company and corporate governance variables for 20 years (1995-2014). Findings This research suggests that a gradual convergence has taken place prior to the global financial crisis. However, the results suggest that the convergence process experienced a slowdown in the aftermath of the global financial crisis, which may be linked to the stability of the German corporate governance system during the global financial crisis and the political environment during this time. Originality/value This paper contributes to the research by not only analysing the development of the German corporate governance system but also identifying new reasons for this development and explaining why a new convergence process may be observed in the future again.

scholarly journals Examining the Link Between Religion and Corporate Governance: Insights From Nigeria

2018 ◽  
Vol 59 (5) ◽  
pp. 956-994 ◽  
Author(s):  
Franklin Nakpodia ◽  
Philip J. Shrives ◽  
M. Karim Sorour
Keyword(s):  
Corporate Governance ◽  
Content Analysis ◽  
Institutional Environment ◽  
Qualitative Content Analysis ◽  
Business Environment ◽  
Research Approach ◽  
Governance System ◽  
Good Corporate Governance ◽  
Corporate Governance System

This article examines whether the degree of religiosity in an institutional environment can stimulate the emergence of a robust corporate governance system. This study utilizes the Nigerian business environment as its context and embraces a qualitative interpretivist research approach. This approach permitted the engagement of a qualitative content analysis (QCA) methodology to generate insights from interviewees. Findings from the study indicate that despite the high religiosity among Nigerians, religion has not stimulated the desired corporate governance system in Nigeria. The primary explanation for this outcome is the presence of rational ordering over religious preferences thus highlighting the fact that religion, as presently understood and practiced by stakeholders, is inconsistent with the principles underpinning good corporate governance.

The ultimate controlling owner and corporate governance in Brazil

2019 ◽  
Vol 19 (1) ◽  
pp. 120-140 ◽  
Author(s):  
Vicente Lima Crisóstomo ◽  
Isac de Freitas Brandão
Keyword(s):  
Corporate Governance ◽  
Emerging Market ◽  
Governance System ◽  
Private Benefits ◽  
Controlling Shareholder ◽  
Content Type ◽  
Controlling Shareholders ◽  
Private Benefits Of Control ◽  
Corporate Governance System

Purpose High ownership concentration makes controlling blockholders powerful enough to use private benefits of control and able to shape the corporate governance system to favor their own interests. This paper aims to examine the effect of the nature of the ultimate firm owner on the quality of corporate governance in Brazil. Design/methodology/approach Econometric models are estimated to assess whether the nature of the ultimate controlling shareholder affects the quality of the corporate governance system. Models are estimated using panel data methodology with coefficients estimated by the generalized method of moments system estimator. Findings The results show that the absence of a controlling shareholder has a positive effect on corporate governance, whereas the presence of a controlling blockholder, or a shareholder agreement among a few large shareholders, has a negative effect. This adverse effect holds when the controlling blockholder is a family or another firm. The findings are in line with the expropriation effect given that weaker corporate governance system facilitates controlling shareholders’ ability to extract private benefits of control. The findings also give support to the substitution effect as powerful blockholders take on the management monitoring function by weakening the board. Originality value Following important previous literature, the study investigates the effect of the nature of large controlling shareholders on the adoption of good corporate governance practices. The work provides additional evidence on the effect of the nature of large controlling shareholders on the quality of the corporate governance system in Brazil, taking into account the main kinds of controlling blockholders present in that market. The findings give support to both the expropriation and substitution hypotheses highlighting the presence of the principal-principal agency model in an important emerging market, Brazil.

scholarly journals The associations of board of directors’ characteristics with modified audit opinion

AD-minister ◽  
2020 ◽  
pp. 5-34
Author(s):  
Waddah Kamal Hassan Omer ◽  
Khaled Salmen Aljaaidi ◽  
Mohd ‘Atef Md Yusof ◽  
Mohamad Hisyam Selamat
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Financial Reporting ◽  
Critical Role ◽  
Cross Sectional ◽  
Audit Opinion ◽  
Good Corporate Governance ◽  
Financial Expertise ◽  
The Board Of Directors

The aim of this study is to investigate the association between the characteristics of the board of directors and the likelihood that a company receives a modified audit opinion (as a measure of the quality of companies external financial reporting) in Malaysia. To test our hypotheses, we use the pooled cross-sectional logistic regression analysis for 136 firm-year observations listed on Bursa Malaysia over the period 2009-2011.The evidence we uncover is consistent with the hypotheses that companies with large board size and greater financial expertise of the board of directors are less possible to receive a modified audit opinion. The evidence offers by this study reinforces the listing rules of the Malaysian-Corporate-Governance Code and the requirements of the Bursa Malaysia Corporate-Governance-Guide, which consider the significance of the board of directors as an aspect of good corporate governance to its critical role in the Malaysian financial reporting process.

scholarly journals Quality of corporate governance: Contribution to improving companies performance in Bosnia and Herzegovina

2021 ◽  
Vol 9 (2) ◽  
pp. 19-33
Author(s):  
Slobodan Marin ◽  
Rade Tešić ◽  
Milan Šušić
Keyword(s):  
Corporate Governance ◽  
Bosnia And Herzegovina ◽  
Capital Market ◽  
Business Performance ◽  
Business Environment ◽  
Governance System ◽  
Corporate Governance System ◽  
Business Conditions ◽  
The Capital Market

A quality corporate governance system is a basic prerequisite for a sustainable growth economy, more easily increasing the efficiency of the economic system and guaranteeing access to external sources of capital. The level of quality of corporate governance can be defined as the degree of fulfillment of set standards of corporate governance defined at the international and national institutional level. In the new, modern business conditions, with strong dynamic changes in the social and business environment, modern corporate companies, ie their management bodies, are taking on new characteristics, adapting to new requirements and challenges. In this sense, the new demanding business conditions require continuous improvement of corporate governance potential. Based on previous theoretical and empirical knowledge, Bosnia and Herzegovina has the characteristics of a closed corporate governance system in both entities, so, as a basis for developing models for measuring the level of corporate governance, selected models that measure corporate governance in countries with typical closed corporate governance systems. A significant number of studies show that corporations that achieve higher standards and better corporate governance practices also have better business performance results and thus greater value in the capital market. This means that corporations with a higher level of corporate governance also have better financial operating results, easier access to financial capital, and greater value in the capital market. The main purpose of the research is to determine the level of influence of the quality of corporate governance on business performance, ie to determine whether corporations that had good corporate governance had higher business liquidity and vice versa. The main goal of the research is to establish the link and relationship between quality and corporate performance management indicators of the corporation's business.

scholarly journals The Company’s Internal Characteristics and Mandatory Disclosure Size of Web-Based Financial Reporting

2017 ◽  
Vol 19 (3) ◽  
Author(s):  
Weli Weli
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Capital Market ◽  
Financial Information ◽  
Web Based ◽  
Full Disclosure ◽  
Main Motivation ◽  
Good Corporate Governance ◽  
Size Type

The new regulation on the Indonesian Capital Market (XK6-Bapepam-LK No. KEP-431/BL/ 2012), related to the disclosure of financial information on the company's website is the main motivation of this study, which is to analyze the extent to which issuers responded to the new regulation. The study was conducted on 50 companies included in the list of 50 companies with the highest score of corporate governance version IICD in 2013 - 2014 and 57 companies in the same industry as a control companies, with the total number of samples is 107 companies. The study was conducted by analyzing the factors (size, listing period, industry, the quality of corporate governance) that affect the level of disclosure by the company on their website. The results showed that not all sample companies do a full disclosure and the average disclosure is only 77%. Further, the factor of disclosure size was also influenced by the company's internal characteristics such as company size, type of industry and good corporate governance.

scholarly journals DIVIDEND POLICY IN THE CORPORATE GOVERNANCE SYSTEM OF COMPANIES

2020 ◽  
pp. 557-567
Author(s):  
K. Mamikonyan
Keyword(s):  
Corporate Governance ◽  
Dividend Policy ◽  
Financial Indicators ◽  
Governance System ◽  
Wrong Decision ◽  
Economic Entity ◽  
Dividend Payments ◽  
Corporate Governance System ◽  
The Status

Over the past decade, dividend policy has become a fundamental element of the financial strategy of joint-stock companies, as it has a direct impact primarily on the corporate governance of the company. It can be considered that dividend payments are most often connected not with financial indicators, but with a significant improvement of the quality of corporate governance in the company, i.e. dividend payments are more likely an element of corporate governance. In essence, the high quality of corporate governance somewhat reduces the likelihood of making the wrong decision. To the qualitative indicators, showing the status of the company the quality corporate governance can be added for the assessment of the bankruptcy of economic entities. If the quality of corporate governance is considered as a new one, added to the composition of qualitative indicators, then in general a number of signs indicating the pre-bankrupt state of the economic entity and not reflected in the financial statements can be offered. Timely disclosure of information is accepted as the most important factor in improving corporate governance, which allows investors to reliably assess investment risks and compare practice with these results. Certain features are directly related to the structural elements of the company’s dividend policy, since contributing to the realization of the rights and interests of shareholders, the dividend policy occupies a major place in the corporate governance system of companies.

scholarly journals Corporate governance and management practices in Japan: Current issues

2003 ◽  
Vol 1 (2) ◽  
pp. 38-52 ◽  
Author(s):  
Masao Nakamura
Keyword(s):  
Corporate Governance ◽  
Management Practices ◽  
Governance Reform ◽  
Governance System ◽  
Policy Initiatives ◽  
Corporate Governance System ◽  
Corporate Governance Reform ◽  
Governance Practices ◽  
Potential Applicability ◽  
Anglo American

Facing the prolonged recession since the burst of a financial bubble in 1990 Japan has been experimenting with various new policy initiatives both in the public and private sectors, corporate governance reform being one of such policy initiatives. Japanese corporate governance practices in particular have been severely blamed as one of the primary reasons for Japan’s poor economic performance in the last decade. In this paper we discuss the relationship between corporate governance and various aspects of management practices in Japan. (Corporate governance in Japan emphasizes not only the shareholders and managers, as in the West, but also the workers as important corporate stakeholders.) We point out also that Japan’s relatively loosely practiced anti-monopoly (anti-trust) laws continue shaping Japanese corporate governance behavior. We then evaluate Japan’s corporate governance reform movement which emphasizes the transformation of the current corporate governance system, which pays little attention to individual shareholders, into one similar to the Anglo-American system which focuses more on shareholders’ value. We tentatively conclude that Japan has not yet found a new corporate governance system that can serve as an equilibrium business system in that it is compatible with Japan’s management, legal and other practices and the incentives of the constituents of Japanese firms. This paper also presents various incentive and institutional issues which would have to be considered by those who consider potential applicability of the Japanese-like corporate governance practices to transitional economies.

Sign in / Sign up

Export Citation Format

Share Document