Corporate Goverance
Not what you're looking for?
Please identify the corporate governance problems leading up to the corporate scandals of the early 21st century, also the influence of the governance rating industry on American corporations. Evaluate at least two governance-rating methodologies and America's reaction to the rating system.
Purchase this Solution
Solution Summary
Please identify the corporate governance problems leading up to the corporate scandals of the early 21st century, also the influence of the governance rating industry on American corporations. Evaluate at least two governance-rating methodologies and America's reaction to the rating system.
Solution Preview
One of the major corporate governance problems that led to corporate scandals in the recent past are those related to transparency of financial reporting. Transparent financial reporting is essential to delivering effective corporate governance. Financial reporting supports investor confidence by providing information about the condition, performance and risk profile of the firm concerned.
However, various factors can hamper effective disclosure, including (i) incomplete and unenforceable contracts; (ii) managerial advantages resulting from asymmetric information situations; and (iii) opportunistic managerial behaviour. These were some of the reasons that led to accounting scandals at large corporations like Enron.
Harmful incentive structures, conflicts of interests, and the absence of transparency seem to be key issues in addressing shortcomings in current corporate governance arrangements.
source: http://ec.europa.eu/economy_finance/publications/economic_papers/2004/ecp200en.pdf.
Many audit committees rely almost exclusively on the outside auditor in performing their task of monitoring management and providing good corporate governance. Unfortunately, there is a serious disconnect ...
Education
- BCom, SGTB Khalsa College, University of Delhi
- MBA, Rochester Institute of Technology
Recent Feedback
- "Thank you. "
- "Thank you"
- "Thank you. I got 20/20 last week for my discussion you help me out with."
- "Thank you. Great Job. "
- "Thank you. Great Job. "
Purchase this Solution
Free BrainMass Quizzes
Operations Management
This quiz tests a student's knowledge about Operations Management
Introduction to Finance
This quiz test introductory finance topics.
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Basics of corporate finance
These questions will test you on your knowledge of finance.