Corporate Governance and Fraud: Evolution and Considerations

Costa, Ana Paula Paulino da

doi:10.5772/intechopen.68489

Cited by 6 publications

(3 citation statements)

References 48 publications

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“…The need for corporate governance dates back to the time when the corporate form of business worked to minimize the potential conflict of interest between corporate owners and managers and contributed to enhanced value (Berle & Means, 1932). The disturbing regularity of high-profile financial scandals and the debilitating recent global financial crisis have contributed to the renewed interest and added relevance of governance quality of companies in general and banks in particular (da Costa, 2017). The corporate governance of banks remains highly pertinent in the face of accentuated information asymmetry, diluted monitoring capacity amidst opaque banking activities, highly leveraged business resulting in strict scrutiny, conflicting goals of stakeholders and unique agency issues.…”

Section: Introductionmentioning

confidence: 99%

Role of Board Functions in Bank Performance: Direct and Indirect Effects of Board Independence

Handa

2022

Management and Labour Studies

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The present study attempts to explore the Indian banking sector from 2007 to 2017 for its performance and for the influence of important characteristics like ownership of banks, board functioning and the effect of independent directors. The results establish that the type of bank has a significant impact on performance metrics, board characteristics and bank-specific features. Moreover, the positive significant influence of board size and board independence is confirmed using panel data analysis. Further, the partially mediating role of independent directors on the relationship of financial performance (measured through return on assets and return on equity) and board characteristics is confirmed using mediation analysis. The present research holds important insights for policymakers, regulators and stakeholders of the banking sector, with a push to reorient their emphasis on board independence and board functioning for better financials of banks in India.

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Section: Introductionmentioning

confidence: 99%

Role of Board Functions in Bank Performance: Direct and Indirect Effects of Board Independence

Handa

2022

Management and Labour Studies

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“…Apart from the above, corporate accounting fraud is evidenced by the devastating high-profile corporate failures such as Enron, WorldCom, Satyam Computers that occurred around the globe (Kankanamage, 2015). One of the key causes of the aforementioned corporate failures, and many such others, was the materially misrepresented financial statements via malfeasance accounting practices, due to the lack of monitoring by the stakeholders (Mamo & Aliaz, 2014;da Costa, 2017). Thus, the regulators throughout the world started to focus on corporate governance mechanisms, especially the ownership structure dimensions to enhance the quality of financial reporting (Al-Fayoumi et al, 2010).…”

Section: Introductionmentioning

confidence: 99%

Earnings Management and Ownership Structure: Evidence from Sri Lanka

Anwar

Buvanendra

2019

Colombo Bus. J

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The main purpose of this study is to examine the impact of ownership structure on earnings management considering listed firms at the Colombo Stock Exchange-Sri Lanka during the period of 2013/14 to 2017/18. Earnings management is measured using discretionary accruals as a proxy based on Kothari, Leone and Wesley (2005) performance adjusted discretionary accrual model, while taking into account the four types of ownership structures, viz, ownership concentration, managerial ownership, institutional ownership and foreign ownership. The study employed pooled OLS regression. The findings of the study reveal that managerial and institutional ownership structures are effective in constraining accruals manipulations. Conversely, foreign ownership is found to have a significantly positive association with earnings management. The outcomes of the paper further widen the literature related to understanding the influences of ownership structure on earnings management in the context of emerging economies.

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“…Unethical behaviours or conduct in businesses have received significant attention, and ethical values have been questionable since the global corporate scandals. The event of international corporate scandals, such as Enron and WorldCom, occurred because of poor practices of corporate governance and ethical standards (Costa, 2017). Asian countries, including Malaysia, are also experiencing a similar issue, mainly involving top-level management abusing their position for self-interest (Palation, 2015).…”

Section: Introductionmentioning

confidence: 99%

The ethical value disclosure index from the lens of SDG 16 and institutional theory

Joseph

Rahmat

Yusuf

et al. 2022

IJOES

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Purpose This paper aims to describe the development of the ethical values disclosure index (EVDi) for Malaysian companies using the Sustainable Development Goal (SDG) 16 and isomorphism perspectives. Design/methodology/approach This paper reports an inclusive examination of international and national guidelines in relation to the code of ethics and ethical values in making the disclosure. Findings The final 10 categories and 40 items under review have been developed in an instrument, the proposed EVDi, for measuring the commitment undertaken by companies in communicating ethical values information to stakeholders. Research limitations/implications The EVDi may fulfil the function of good governance to inculcate ethical work culture throughout companies. Social implications Effective ethical values in communication may reduce the likelihood of illegal activities and cost of acting unethically in organisations. Originality/value The value of this paper is its approach of using the isomorphism concept from the institutional theory to address the SDG 16 by developing the EVDi. The new index incorporates core elements of moral values adapted mainly from the professional bodies that regulate the accounting profession and other related organisations. The index is an initiative used to measure companies' commitment to promoting ethical values through disclosure. The efforts to measure the level of commitment supporting the SDG 16 promote effective, accountable and transparent institutions at all levels.

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Corporate Governance and Fraud: Evolution and Considerations

Cited by 6 publications

References 48 publications

Role of Board Functions in Bank Performance: Direct and Indirect Effects of Board Independence

Role of Board Functions in Bank Performance: Direct and Indirect Effects of Board Independence

Earnings Management and Ownership Structure: Evidence from Sri Lanka

The ethical value disclosure index from the lens of SDG 16 and institutional theory

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