scholarly journals Corrupção e compliance nas empresas públicas e sociedades de economia mista: racionalidade das disposições da Lei de Empresas Estatais (Lei nº 13.303/2016)

2018 ◽  
Vol 277 (1) ◽  
pp. 241
Author(s):  
Clóvis Alberto Bertolini de Pinho ◽  
Marcia Carla Pereira Ribeiro
Keyword(s):  
Corporate Governance ◽  
Economic Analysis ◽  
Legal System ◽  
Boards Of Directors ◽  
Audit Committees ◽  
Economic Analysis Of Law ◽  
External Audit ◽  
Public Companies ◽  
Mixed Economy ◽  
Brazilian State

<p>Corruption and compliance in state-owned companies: rationality of the Brazilian State Owned Companies Law (13.303/2016)</p><p> </p><p>A Lei nº 13.303/2016, Lei das Empresas Estatais, disciplinou diversos pontos lacunosos no direito brasileiro, nomeadamente a disciplina jurídica das sociedades de economia mista e empresas públicas. Um desses pontos é a obrigatoriedade da existência de políticas de compliance e governança corporativa para as empresas estatais, com a vedação expressa da possibilidade de acontecimentos de atos de corrupção (art. 9º, §1º, I, da Lei nº 13.303/2016). A previsão revela a particularidade com que vem sendo tratado o combate à corrupção no Brasil, principalmente no âmbito das empresas estatais. Por outro lado, a Lei nº 13.303/2016 inaugura exigências que até então eram praticadas no mercado privado e no exterior, como a constituição de Comitês de Auditoria Externos, ligados diretamente aos Conselhos de Administração das sociedades de economia mista e empresas públicas (desde que adotem o regime das sociedades anônimas). Adotando o método da análise econômica do direito, o presente artigo aborda como o fenômeno da corrupção pode afetar o funcionamento das empresas estatais brasileiras.</p><p> </p><p>The Brazilian Law Nº 13.303/2016 has disciplined a number of shortcomings about the State-Owned Companies in the Brazilian legal system, namely the legal discipline of mixed-capital companies and public companies. One of these points is the obligation that State-Owned Companies must have compliance and corporate governance policies, with the express prohibition of events involving acts of corruption (article 9, §1º, I, of Law 13303/2016). The Law Nº. 13.303/2016 reveals the particularity with which the fight against corruption in Brazil has been addressed. The Brazilian Law Nº. 13.303/2016 inaugurates requirements that had hitherto been practiced in the private and overseas markets, such as the constitution of External Audit Committees, directly linked to the Boards of Directors of mixed economy companies and public companies. Adopting the method of the economic analysis of law, this article shows how the phenomenon of corruption can affect the functioning of the Brazilian state-owned enterprises.</p>

scholarly journals The concept and the appearance of internal audit committees

2018 ◽  
Vol 27 (2018) ◽  
pp. 111-114
Author(s):  
Cristian Dragan
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Boards Of Directors ◽  
Audit Committee ◽  
Internal Audit ◽  
Audit Committees ◽  
External Audit ◽  
General Management ◽  
Proper Functioning

The Audit Committee is a concept of Corporate Governance, whose main concerns are focused on organizing and ensuring the proper functioning of internal control, internal audit, and its relationship with external audit. Audit committees have emerged from the need to send recommendations to the general management or board, to understand them and provide needed assistance for their implementation. For these reasons, the boards of directors thoroughly oversee the qualifications of committee members, their autonomy towards managers, the information they receive from auditors, and what they report.

scholarly journals The Impact of Audit Committees Controls Commitment on Strengthening Corporate Governance: Evidence from Jordan

2019 ◽  
Vol 11 (3) ◽  
pp. 69
Author(s):  
Fares Jamiel Hussein Alsufy
Keyword(s):  
Corporate Governance ◽  
Subject Matter ◽  
Boards Of Directors ◽  
Stock Exchange ◽  
Audit Committees ◽  
Staff Members ◽  
Amman Stock Exchange ◽  
The Subject ◽  
The Impact ◽  
Working Mechanisms

This study aims to determine the extent to which the Boards of Directors of the industrial Jordanian Companies listed on Amman Stock Exchange (ASE) comply with the controls of composing audit committees, their working mechanisms, and the impact on the corporate governance. To achieve the objectives of this study, (155) questionnaires were developed and distributed to the staff members relevant to the subject matter of the study. Out of distributed questionnaire, (144) responded questionnaires only were collected from respondents. The number of questionnaires analyzed was (135) and a T-test has been used to test the hypotheses. The results of the study showed that there is a statistically significant correlation on the existence of the commitment of the Boards of Directors of the Jordanian Listed Companies to the disciplines of audit committees&rsquo; formation and their mechanisms of work. The results also demonstrated the existence of impact of this commitment on the governance of these companies. The commitments to these controls and their work mechanisms have been developed to enhance corporate governance in Jordanian companies.

scholarly journals The relationship between earnings quality, control mechanisms of corporate governance, and future stock price returns. The case of the Netherlands

2013 ◽  
Vol 10 (4) ◽  
pp. 379-389
Author(s):  
Elisabetta Basilico ◽  
Hugh Grove
Keyword(s):  
Corporate Governance ◽  
The Netherlands ◽  
Stock Price ◽  
Earnings Quality ◽  
Audit Committees ◽  
Control Mechanisms ◽  
Public Companies ◽  
Corporate Governance Mechanisms ◽  
New Research ◽  
The Relationship

This article extends prior research on the relation between earnings quality (assessed by accruals) and future stock price returns and adds new research on the relationships between direct and indirect corporate governance mechanisms of control with accruals and future stock price returns. We study public companies of the Netherlands and find the presence of mispricing associated with very high and very low accruals. We also find evidence that direct corporate governance control mechanisms, such as the existence of separate, independent, and skilled audit committees, are related to higher earnings quality and higher future stock price returns.

scholarly journals Corporate governance, external audit and the audit process

2009 ◽  
Vol 6 (4) ◽  
pp. 309-316
Author(s):  
Hashanah Ismail
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Good Governance ◽  
Audit Committees ◽  
Control Environment ◽  
Audit Process ◽  
External Audit ◽  
Audit Risk ◽  
Risk Framework ◽  
Governance Practice

This paper reports on interviews with audit partners of listed companies on their perspectives of impact of corporate governance on the audit process. Based on responses received the study finds that audit risk framework is dynamic enough to incorporate expected changes in control environment brought about by greater consciousness on the part of directors on the need for good internal control. However there is still skepticism that good governance practice has filtered through clients’ control environment as auditors believe dominant CEO’s may still moderate the effectiveness of audit committees

Likely Effects of Stock Exchange Governance Proposals and Sarbanes-Oxley on Corporate Boards and Financial Reporting

2003 ◽  
Vol 17 (4) ◽  
pp. 343-355 ◽  
Author(s):  
April Klein
Keyword(s):  
New York ◽  
Corporate Governance ◽  
Financial Reporting ◽  
Boards Of Directors ◽  
Stock Exchange ◽  
Historical Context ◽  
Audit Committees ◽  
Corporate Boards ◽  
Sarbanes Oxley ◽  
Nominating Committees

One of the primary aims of the Sarbanes-Oxley Act of 2002, the New York Stock Exchange, and the NASDAQ corporate governance proposals is to improve the reporting systems for publicly traded companies. Many of the exchange proposals redefine the composition and duties of firms' boards of directors and their compensation and nominating committees. Sarbanes-Oxley places new duties on audit committees and provides oversight and restraints on public accounting companies. This paper describes many of the exchange proposals and puts them in their historical context. I also present the likely effects of the new corporate governance proposals on future boards of directors and assess their impact on the financial reporting system.

Board and audit committee effectiveness in the post-ASX Corporate Governance Principles and Recommendations era

2017 ◽  
Vol 43 (10) ◽  
pp. 1137-1151 ◽  
Author(s):  
Maryam Safari
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Financial Reporting ◽  
Boards Of Directors ◽  
Audit Committee ◽  
Management Practices ◽  
Reporting Quality ◽  
Audit Committees ◽  
Content Type ◽  
Aggregate Effect

Purpose The purpose of this paper is to contribute to the corporate governance literature by examining the aggregate effect of board and audit committee characteristics on earnings management practices, particularly in the period following the introduction of the second edition of the Australian Securities Exchange (ASX) Corporate Governance Principles and Recommendations. Design/methodology/approach This paper begins by embarking on an extensive review of extant empirical research on boards of directors and audit committees. Then, the paper reports on the use of a quantitative analysis approach to specify the relationship between board and audit committee characteristics (introduced by the ASX Corporate Governance Council) and the level of absolute discretionary accruals as a proxy for earnings management. Findings The findings suggest that greater compliance with board and audit committee principles is linked to lower earnings management, indicating that deliberate structuring of boards and audit committees is an effective approach for enhancing a firm’s financial reporting quality and providing support for the efficacy of the second edition of principles and recommendations related to boards and audit committees suggested by the ASX Corporate Governance Council. Practical implications This study significantly extends the literature and has notable implications for financial reporting regulators, as the findings regarding the monitoring role of boards and audit committees should be beneficial for future revisions of corporate governance principles and recommendations. Originality/value This study focuses on the aggregate effect of board characteristics recommended by the Australian Corporate Governance Council on earnings management practices, and the results support the effectiveness of the board and audit committee characteristics recommended by the ASX Corporate Governance Council. New directions for future improvements to the principles and recommendations are identified.

scholarly journals Focusing on sustainability to strengthen corporate governance

2018 ◽  
Vol 2 (2) ◽  
pp. 38-47 ◽  
Author(s):  
Hugh Grove ◽  
Mac Clouse
Keyword(s):  
Economic Growth ◽  
Corporate Governance ◽  
Asset Management ◽  
Boards Of Directors ◽  
State Of The Art ◽  
Societal Impact ◽  
Company Performance ◽  
Public Companies ◽  
Scholarly Literature ◽  
The World

This paper provides a summary of current sustainability issues and trends, primarily from an application perspective, which contributes to the state of the art of scholarly literature with implications for improved corporate governance. A leading sustainability advocate for better corporate governance is Larry Fink, who is the CEO of BlackRock, the world’s largest asset-management company with $6.3 trillion under management and offices in 30 countries and clients in over 100 countries. In January 2018, he sent a letter to all CEOs of public companies across the world to start accounting for the societal impact of their companies and to focus upon economic growth that is sustainable. Currently, a majority of S&P 500 companies have publicly disclosed their sustainability performances with Environmental, Social, and Governance (ESG) metrics. These ESG reporting companies had higher financial returns than their non-ESG reporting competitors. As gatekeepers for investors and other stakeholders, Boards of Directors should pay attention to these sustainability trends, related company performances, and opportunities for future company performance which should strengthen corporate governance.

scholarly journals Corporate Governance, Performance, and Financial Statements Publication as Moderation on Company Value in Indonesia

2019 ◽  
Vol 2 (1) ◽  
Author(s):  
Suwardi Bambang Hermanto ◽  
Ikhsan Budi Riharjo
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Financial Statements ◽  
Audit Committees ◽  
Return On Assets ◽  
Public Companies ◽  
Company Value ◽  
And Performance

The research objective was to analyze the influence of corporate governance and performance, as well as the publication of financial statements as the moderation of company value. Institutional ownership variables, number of commissioners, number of directors, and number of audit committees and independent commissioners as corporate governance. Return on asset variables as performance, and audit delay as the publication of financial statements, and Tobin's Q as a company value. The research objects were 70 public companies on the Indonesia Stock Exchange, with a sample of 122 observations of financial statements from 2013-2017. The results showed that the number of commissioners, audit committees and return on assets had a positive effect on firm value. Publication of financial statements affects the value of the company, and moderates the effect of financial performance on firm value. Whereas institutional ownership, the number of directors and independent commissioners does not affect

scholarly journals Corporate governance mechanisms and disclosure quality: Evidence from UK top 100 public companies

2019 ◽  
Vol 16 (2) ◽  
pp. 97-107 ◽  
Author(s):  
Saleh Alagla
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Firm Growth ◽  
Empirical Literature ◽  
Board Structure ◽  
Business Analytics ◽  
Disclosure Quality ◽  
External Audit ◽  
Public Companies ◽  
Relative Contribution

This research is aimed to explore the determinants of corporate governance disclosures with emphasis on board structure and external audit. Theoretical and empirical literature shows conflicting evidence on how aspects of corporate governance are related to disclosures. This study carried out an extensive synthesis of the existing literature, taking into account the aims of analysis and the underlying situation of past studies, to come up with tentative answers to the research questions before the analysis. The paper adopts a balanced analysis in which disclosures are assumed to be as a result of both board and non-board factors but still within the corporate governance realm. In order to achieve the overall aim, the study sample was drawn from the existing list of UK’s Top 100 FTSE non-regulated firms. A combination of quantitative statistical and business analytics methods was used to carry out the analysis. Using the Corporate Governance Disclosure Quality (CGDQ) index as the dependent variable and selected board and non-board factors as independent variables, pooled OLS regressions were run. The diagnostic tests were carried out to establish the relative contribution of each independent variable to the model. It was established that the age of board members, the proportion of female directors, the frequency of audit committee meetings, external audit expense, firm growth opportunities, and firm size were important determinants of CGDQ. It was suggested that future studies should investigate whether board structure is still an important determinant of corporate disclosures in the age of advanced information technology.

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