Accounting and internal Mechanisms of Corporate Governance during the inter-war-period in France

2021 ◽  
pp. 103237322198944
Author(s):  
Didier Bensadon
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Growth Management ◽  
Governance Mechanisms ◽  
Internal Governance ◽  
Internal Governance Mechanisms ◽  
Control Procedures ◽  
External Governance ◽  
Total Lack ◽  
Independent Auditing

This article focuses on the role of accounting in governance arrangements. The French context is marked by the inexistence of external governance mechanisms and by the total lack of effectiveness of independent auditing. Therefore, the objective of this article is to shed light on the internal governance mechanisms implemented by the leading French aluminium producer during the inter-war period and the role played by accounting in this implementation. On the basis of the archives of the Compagnie Alais, Froges et Camargue (AFC) between 1921 and 1939, it appears that in a context marked by very strong external growth, management strengthened financial reporting systems and internal control procedures. In addition, the directors used the financial statements as early as 1923 to determine the financial effort of the AFC group and to measure the flows intended to finance the group’s material and financial investments. Accounting is unquestionably at the heart of AFC’s internal governance mechanisms.

Impact of corporate governance compliance and board attributes on operating liquidity in pre- and post-corporate governance reforms

2020 ◽  
Vol 20 (7) ◽  
pp. 1329-1347
Author(s):  
Javed Khan ◽  
Shafiq Ur Rehman
Keyword(s):  
Corporate Governance ◽  
Gender Diversity ◽  
Governance Mechanisms ◽  
Internal Governance ◽  
Content Type ◽  
Internal Governance Mechanisms ◽  
External Governance ◽  
The Impact ◽  
Corporate Governance Reforms ◽  
Governance Reforms

Purpose This study aims to investigate the impact of corporate governance compliance, governance reforms and board attributes on operating liquidity of Pakistani listed non-financial firms. The study further tests how these relationships vary in the pre- and post-corporate governance reforms. Design/methodology/approach Fixed-effect regression model is used on 10 years panel data from 2007 to 2016 for a sample of 170 firms listed on the Pakistan Stock Exchange. Two-stage least squares model is used for addressing the endogeneity problem. Findings The findings reveal that governance compliance and governance reforms negatively affect operating liquidity. Among the board attributes, board meetings, directors’ remuneration, board foreign diversity and board gender diversity are significantly related to operating liquidity. Further exploration indicates that internal governance mechanisms are less effective to safeguard shareholders from expropriation during weak external governance. This suggests that strong external governance is inevitable to the effectiveness of internal governance mechanisms. Overall, the study findings support the agency theory. Practical implications The findings provide valid recommendations to policymakers interested in safeguarding the investors to focus on macro-level governance for making the micro-level governance effective. Further, the results provide the executives with an insight to improve the compliance level with the code of corporate governance. Originality/value Unlike prior studies, this study examines the impact of corporate governance compliance and novel board attributes – directors’ attendance at board meetings, number of board committees, directors’ remuneration and board foreign diversity on operating liquidity. Further, the study subdivides its sample period into pre- and post-corporate governance reforms to examine how external governance influences internal governance effectiveness.

An investigation of the relation between ownership structure and management control in professional service organisations

2019 ◽  
Vol 15 (1) ◽  
pp. 147-168 ◽  
Author(s):  
Robyn King ◽  
Peter Clarkson
Keyword(s):  
Ownership Structure ◽  
Empirical Support ◽  
Professional Services ◽  
Management Control ◽  
Professional Service ◽  
Governance Mechanisms ◽  
Internal Governance ◽  
Content Type ◽  
High Performing ◽  
Internal Governance Mechanisms

PurposeThis study aims to examine the interplay between ownership structure (organisational form) and management control system (MCS) design as governance structures within Australian primary health-care organisations (PHOs), seeking support for the suggestion that professional services will be most efficiently and effectively provided in organisations that have internal governance that is matched to their ownership form.Design/methodology/approachThe analysis is based on a series of in-depth investigations into the MCS choices made by seven Australian PHOs. Arguing that the degree of information impactedness is inversely related to the level of general practitioner (GP) ownership, organisations where more than 50 per cent of the GPs working within the practice are owners are classified as “high ownership” (“low information impactedness”). The adoption by high-performing organisations of their predicted MCS archetype according to Speklé’s development is then interpreted as representing empirical support.FindingsThe findings provide uniform support for the importance of the match between ownership structure and internal governance mechanisms. As predicted, the two high-performing, high member-owned organisations reported MCS resembling exploratory archetypes, the three high-performing, low member-owned organisations reported MCS consistent with a boundary archetype and the two low-performing organisations reported little emphasis on any control.Research limitations/implicationsThis study provides evidence of the importance of the appropriate match between ownership structure and internal governance mechanisms for PHOs.Practical implicationsThis study has potential to assist managers, owners and advisors to optimise MCS design in professional services organisations where there is heterogeneous ownership by professionals.Originality/valueThis study is one of the few attempts to provide empirical support for the assertion of the importance of a match between ownership structure and MCS design. It also represents one of the few attempts to provide empirical support for Speklé’s (2001) control archetypes, here the boundary and exploratory archetypes, archetypes that are applicable within important sectors of the economy, notably the professional services sector.

scholarly journals ¿Son las características del comité de auditoría importantes para el presupuesto de auditoría interna en empresas de Malasia?

2018 ◽  
Vol 63 (2) ◽  
pp. 32
Author(s):  
Redhwan Al-Dhamari ◽  
Almahdi Almagdoub ◽  
Bakr Al-Gamrh
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Audit Committee ◽  
Negative Impact ◽  
Internal Audit ◽  
Internal Governance ◽  
Policy Makers ◽  
Control Functions ◽  
Study Support ◽  
Recent Policy

<p class="Default"><span lang="EN-US">An audit committee is viewed as an essential self-regulatory internal governance instrument that is expected to provide an oversight role over the entire process of financial reporting. An internal audit is also one of the corporate governance cornerstones that is essential for the effective monitoring of the operating performance of internal control. To ensure its effectiveness, the audit committee monitors the resources available to the internal audit, and internal control functions should be directly reported to the audit committee. This study analyses the effect of audit committee characteristics on internal audit budget in Malaysia, where data on internal audit budget is available and how well audit committee monitors the internal audit function is questionable. Our study also opens the door to an unanswered question, that is, whether an audit committee index is related to internal audit budget. Data of 96 companies listed on Bursa Malaysia for a three-year period, 2012-2014, was utilized to achieve this end. The regression results show that audit committee meeting and index are significantly and positively associated with internal audit budget. They also indicate that audit committee tenure has a significant and negative impact on internal audit budget. The findings of the study support the recent policy initiatives in relation to audit committee and internal audit. They also serve as a wake-up call to policy makers in requiring more committed and skilled members on the audit committee.</span></p>

scholarly journals The mechanisms of governance in nonprofit organizations

2007 ◽  
Vol 4 (2) ◽  
pp. 83-88
Author(s):  
Cláudio Machado Filho ◽  
Adalberto Fischmann ◽  
Luciana Rocha de Mendonça ◽  
Sandra Guerra
Keyword(s):  
Nonprofit Organizations ◽  
Agency Theory ◽  
Theoretical Framework ◽  
Governance Mechanisms ◽  
Internal Governance ◽  
For Profit ◽  
Internal Governance Mechanisms ◽  
The Relationship ◽  
Performance Comparisons ◽  
For Profit Organizations

This paper discusses the governance issues in nonprofit organizations (NPO). The theoretical framework of agency theory is used to analyze the relationship between agents and principals (donors and volunteers) in such kinds of organizations. Similarly to the for-profit organizations, the mechanisms of incentives and monitoring are crucial to the alignment of interests among principals and agents. However, considering the NPO’s intrinsic characteristics, due to the difficulty to implement external and internal governance mechanisms, the challenges of alignment are far more complicated. The NPOs are idiosyncratic, being in many situations complex to establish performance comparisons with similar organizations

Internal governance mechanisms and the performance of decentralized financial systems in Niger

2018 ◽  
Vol 45 (4) ◽  
pp. 629-643 ◽  
Author(s):  
Hamadou Boubacar
Keyword(s):  
Social Performance ◽  
Successful Outcome ◽  
Governance Mechanisms ◽  
Financial Systems ◽  
Board Size ◽  
Internal Governance ◽  
Content Type ◽  
Internal Governance Mechanisms ◽  
Key Skills ◽  
The Impact

Purpose The purpose of this paper is to study the effect of internal governance mechanisms on the financial and social performance of Niger’s decentralized financial systems (DFS). Design/methodology/approach This paper investigated the impact of the board size and the CEO/chairman duality on financial performance and sustainability, respectively, measured by the return on assets (ROA) and operational self-sufficiency on one side and social performance measured by the size of loans granted and the percentage of female borrowers on the other side. Findings The results show that board size positively and significantly affects the ROA. The author also concludes that the duality of decision and control functions promotes the financial viability of the DFS. Regarding the impact of internal governance on social performance, the author finds that board size positively and significantly affects loan size. Research limitations/implications This study focuses on Niger’s 13 largest DFSs. However, an analysis that also includes smaller firms may show different results. Practical implications A board size of between 5 and 15 members is recommended. This would help to incorporate key skills and the active involvement of all members. Originality/value This research highlights the importance of including internal governance mechanisms, underscores an interesting problem and answers questions raised in the existing literature by invalidating or confirming the results that have been obtained thus far. As the players in the microfinance sector recognize that sound governance is an important factor for a successful outcome in any microfinance institution objective, the paper helps shed some light on the situation of DFS in Niger.

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