No abstract

Purpose – This paper aims to examine the perceptions of accountants on corporate governance (CG) practices in public limited liability companies in Barbados, and the perceived effectiveness of these mechanisms. Design/methodology/approach – A three-stage approach was utilized. First, an Internet-based questionnaire was sent to members of the Institute of Chartered Accountants of Barbados to gain accounting perspectives on CG practices by listed Barbadian companies. Second, feedback on the survey results was obtained from the attendees of a panel session at a regional accounting conference. Third, interviews were conducted with five qualified accountants to further explore issues that emerged from the previous stages. Findings – The results suggest that the most important mechanisms for effective CG were the board of directors, auditors and professional accountants. The timely provision of relevant information, board room culture, qualifications and independence of directors were the tasks considered most vital to enhancing board effectiveness. However, the high concentration of ownership in family-controlled firms, interlocking directorates, weak regulatory systems and cultural issues influenced the effectiveness of CG mechanisms. Recommendations for overcoming these barriers and improving CG included purposive training, whistle-blowing mechanisms, stronger legislation and adequate disclosures. Research limitations/implications – The study’s small sample increases the likelihood of bias and important differences being missed, thus reducing the generalizability to the accounting profession as a whole. Practical implications – The research sheds light on the value being placed on CG practices by the accounting profession. The study would assist companies, board of directors and accounting practitioners in developing CG mechanisms that are suitable for emerging countries. Originality/value – The paper contributes to the dearth of literature on perceptions of accountants on CG practices in emerging economies.

Companies in developing economies have faced a myriad of risks. Many of them due to external related party exposures and the potential risks of associated contagion. The function of Internal Audit (IA) has emerged as a significant governance mechanism in the management of risk in developing countries. This exploratory study sought to identify the role of IA across the developing economy of Barbados. Based upon the results of an online survey administered to the Barbados chapter of the Institute of Internal Auditors (IIA), the paper examines IA involvement in the risk management process (RMP) of several types of companies. Findings reveal that IA is critical to the RMP and that it needs to be enhanced through improved risk education, exposure, and training, along with increased support from Audit Committee and Senior Management. The generalizability of the conclusions is however limited since the sample was drawn from a developing country. The paper adds to the existing literature as it highlights the challenges of IA as it develops in a developing economy while also dealing with their integration into the RM framework. Practical key takeaway from the paper suggests that (a) RM and the IAF are in a developmental stage primarily due to the need for increased exposure and understanding of international risks and best practices. This is especially since most companies maintain extensive international ties and are highly susceptible to contagion. (b) For an integrated RM system to be successful, the management of risk must be owned at all levels throughout the organization and not just at the Board of Directors and Executive Management, and (c) improved communication of roles and accountabilities especially for IA should be instituted to ensure proper diffusion of risk culture within the organization.

Risk governance disclosures (RGDs) provide users with valuable information and greater corporate insights about the management, oversight and strategic direction of the organisation. However, insufficient research has been conducted in this area. RGDs reduce information asymmetry and increase transparency. This study examines the level of RGDs in the commercial banks (CBs) of a developing country where most RGDs are voluntary and made at management's discretion. The study adopted a quantitative, multi-method approach. RGDs for two publicly listed CBs in Barbados were analysed over 10 years (2007-2016) using a risk governance disclosure index (RGDI). Correlations were also used to determine if a relationship existed between the disclosures and performance. Disclosures were found to be general and nonstandardized. Company-specific disclosures were infrequent, and annual disclosures were repetitive and symbolic. No significant relationships were discovered between corporate governance disclosures and performance. However, but bank performance indicators were found to be positively related to risk disclosures. A limitation of the study is that only two of the six CBs reported in a manner suitable for this study. Hence, reducing the number of observations. This was overcome through the use of a longitudinal approach which allowed for improved understanding of RG reporting practices in this sector. The results provide valuable insights which supplement the existing literature.They also provide pertinent information for standard-setters, regulators and preparers of the reports. The study contributes to the existing literature in that it examines the disclosure behaviours of CBs in a non-traditional governance model in an economy with limited research.