|
2007
The link between good corporate governance and shareholder value
MAY 2007: In the past 10 years, interest in
corporate governance has grown tremendously. Corporate scandals,
environmental concerns and globalisation have all played their
part in causing shareholders and the public to question and
consider how companies should be governed.
South African Chartered Accountants [CA(SA)] have long been
viewed as custodians of corporate governance. Inherent public
expectation centres on the responsibility of auditors and
accountants to ensure transparency and fairness in reporting
performance and management philosophies. As deemed custodians of
such a high expectation, CAs(SA) can fulfil both the role of
hero, and the role of villain in the eye of the public. (Read
more...)
2006
The three pillars of good corporate
governance
JANUARY 2006: It is a fundamental principle of good
political governance to separate the three arms of government.
Montesquieu’s separation of powers exercisable by the legislature,
executive and the judiciary is the tenet of free and democratic
societies the world over. Within the world of corporate governance,
there are at least three separate arms of governance – corporate
governance, due diligence and compliance programs. Professor
Michael A Adams defines these three concepts in a practical,
commercial way. (Read
more...)
2005
Corporate
Governance and the Forensic Accountant
MARCH 2005: Recent corporate
accounting scandals and the resultant outcry for transparency and honesty in
reporting have given rise to two disparate yet logical outcomes. First,
forensic accounting skills have become crucial in untangling the complicated
accounting maneuvers that have obfuscated financial statements. Second,
public demand for change and subsequent regulatory action has transformed
corporate governance. Increasingly, company officers and directors are under
ethical and legal scrutiny. Both trends have the common goal of responsibly
addressing investors’ concerns about the financial reporting system. (Read
more...)
Corporate Governance &
Transparency
Role of Disclosure: How to prevent new financial
scandals and crimes?
JUNE 2005: Corporate governance systems have evolved
over centuries, often in response to corporate failures or systemic crises.
The first well-documented failure of governance was the
South Sea bubble in the 1700s, which revolutionized business law and
practices in England. Similarly, much of the securities laws in the US were
put in place following the stock market crash of 1929.
Most recently, the financial crisis that began in East
Asia, and rapidly spread to Russia, Brazil and other areas of the globe,
showed that systematic failure of investor protection mechanisms, combined
with weak capital market regulation, leads to failures of confidence that
spread from individual firms to entire countries. (Read
more...)
2003
Corporate governance: how you can make a difference
JANUARY 2003: Is there anything an
individual director, manager or auditor can do to improve the
reliability of financial reporting? Or is the individual just
powerless? Not according to participants at the
Canada/US
Financial Reporting Conference held in Toronto this past
June. They generated several ideas for actions that individuals
can take to become part of the solution to the unfolding crisis
in corporate governance. (Read
more...)
2001
Forge the Right Relationship
MAY 2001: It has been said that “it takes a great person to deal with
catastrophe, and an even greater one to prevent it.” Revelation of an
accounting irregularity or fraud, with its inevitable impact on a company’s
stock price and reputation—as well as the “follow-on” shareholder lawsuits
and SEC problems—can be disastrous for a company. It’s a catastrophe no
business wants to suffer—and no outside auditor wishes to be involved in. (Read
more...)
1998
Corporate failures: audit failure or lack of corporate governance?
OCTOBER 1998: The submission of the South
African Institute of Chartered Accountants (SAICA), prepared in response to
the Nel Commission Report, inquiring into the affairs of the Masterbond
Group, included a section dealing with corporate governance. This section
highlighted the role of corporate governance in preventing corporate
failures. The most salient points are summarised below. (Read
more...)
|
