scholarly journals Convergent Insights for Sustainable Development and Ethical Cohesion: An Empirical Study on Corporate Governance in Romanian Public Entities

2020 ◽  
Vol 12 (7) ◽  
pp. 2990 ◽  
Author(s):  
Ionela Munteanu ◽  
Adriana Grigorescu ◽  
Elena Condrea ◽  
Elena Pelinescu
Keyword(s):  
Sustainable Development ◽  
Corporate Governance ◽  
Financial Reporting ◽  
Internal Control ◽  
Financial Management ◽  
Global Financial Crisis ◽  
Public Procurement ◽  
Principal Component ◽  
Efficiency Index ◽  
Corporate Accountability

The global financial crisis was decisive in reanalyzing the role of corporate governance based on the accountability and ethics of governance practices and its impact on sustainable development. The study aims to analyze the relevance of and the interdependencies between financial governance assessment indicators and income efficiency with synergetic effects on sustainable development and social cohesion, offering a distinct contemplation on errors in governance and financial reporting. Deviations concerning the accuracy of financial statements, flaws in the process of budget creation and budgetary execution, poor implementation of internal control systems, non-compliance with procedures of public procurement contracts, and ineffectiveness in sound financial management represent barometers for assessing managerial accountability in the public sector. This study is based on data reported by the Romanian Court of Accounts processed with the principal component analysis and proposes a global efficiency index as a benchmark indicator barometer in order to analyze the influence of managerial accountability and sustainable reporting compliance on revenue reported by public institutions in Romania. The results of the study are of empirical importance and explore the constant need to evaluate managerial accountability and ethics, with an emphasis on error, in order to improve public governance and enhance corporate accountability.

THE STOCKHOLDER REVIEW COMMITTEE OF THE CHESAPEAKE AND OHIO CANAL COMPANY, 1828–1857: EVIDENCE OF CHANGES IN FINANCIAL REPORTING AND CORPORATE GOVERNANCE

2006 ◽  
Vol 33 (1) ◽  
pp. 125-143 ◽  
Author(s):  
Robert W. Russ ◽  
Gary J. Previts ◽  
Edward N. Coffman
Keyword(s):  
Corporate Governance ◽  
19Th Century ◽  
Financial Reporting ◽  
Financial Management ◽  
Governance Structure ◽  
The Political ◽  
Review Committee ◽  
Corporate Governance Structure ◽  
Corporate Form ◽  
The 19Th Century

Canal companies were among the first enterprises to be organized in the corporate form and to require large amounts of capital. This paper examines the stockholder review committee of a 19th century corporation, the Chesapeake and Ohio Canal Company (C&O), and discusses how the C&O used this corporate governance structure to monitor and improve financial management and operations. A major strength was the concern and dedication of the stockholders to the company, while a major weakness was the political control exerted by the State of Maryland. The paper provides an historical perspective on corporate governance in the 19th century. This research contributes to the literature by providing detailed workings and practices of a stockholder review committee. The paper documents corporate governance efforts in archival sources that provide an early example of accountability required in a corporate charter and the manner in which the stockholders carried out this responsibility.

PENGARUH KOMPETENSI APARATUR DESA, KETAATAN PELAPORAN KEUANGAN DAN SISTEM PENGENDALIAN INTERN TERHADAP PENCEGAHAN FRAUD DENGAN MORAL SENSITIVITY SEBAGAI VARIABEL MODERASI

2018 ◽  
Vol 1 (2) ◽  
pp. 63-89
Author(s):  
Klara Wonar ◽  
Syaikhul Falah ◽  
Bill J. C. Pangayow
Keyword(s):  
Control Systems ◽  
Financial Reporting ◽  
Internal Control ◽  
Financial Management ◽  
Quantitative Research ◽  
Primary Data ◽  
Survey Method ◽  
Moral Sensitivity ◽  
Fraud Prevention ◽  
Study Results

This study aims to examine the effect of fraud prevention on village / village financial management as the dependent variable and the competency of village apparatuses, compliance of government financial reporting, internal control systems as independent variables while moral sensitivity as amoderating variable. This research is a quantitative research or hypothetic - deductive method that aims to answer such questions that are related to exploratory, descriptive, explanatory and predictive studies. Primary data is mainly used in this research. Data collection is conducted using a survey method in the form of a questionnaire that lists the statements, which were given to the respondents to be filled in order to get information, and then the data analyzing was conducted using the Warp-PLS 5.0 Application software. The study results show that the competence of village officials influences fraud prevention, financial reporting adherence affects fraud prevention, and meanwhile the internal control system does not affect fraud prevention. Furthermore, moral sensitivity does not moderate the competence of village officials, adherence to financial reporting and internal control systems.

scholarly journals Quality of financial reporting under IFRS and corporate governance influence: Evidence from the Greek banking sector during crisis

2019 ◽  
Vol 8 (4) ◽  
pp. 8-20
Author(s):  
Panagiotis Ballas ◽  
Alexandros Garefalakis ◽  
Christos Lemonakis ◽  
Vassiliki Balla
Keyword(s):  
Economic Growth ◽  
Corporate Governance ◽  
Financial Reporting ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Debt Crisis ◽  
Financial System ◽  
Positive Contribution ◽  
Governance Practices

The financial system consists, without doubt, one of the most important determinants of the world national economies, which undergoes numerous changes and challenges with major impact on the economic growth prospects of a country. A healthy financial system is the steam engine of the economy, a major source for economic growth through which capitals are attracted for investments; hence, it is regarded as a trustee of financial stability. Given the difference in structure and function of the financial sector in various countries, we investigate the extent to which the implementation of International Financial Reporting Standards (IFRS) accompanied by Corporate Governance practices affected the quality of financial and narrative reporting offered within published statements of Greek banks for the period from 2008 to 2011. The originality of the work lies at the fact that it focuses on Greek financial institutions for a period that incorporates both the burst of global financial crisis and the beginning of the Greek sovereign debt crisis making inferences on quality of reporting as a result of IFRS and Corporate Governance practices adoption. Our analysis revealed the positive contribution of both of the above categories of variables to the accuracy and quality of the information offered to stakeholders.

scholarly journals Internal Control Weakness: A Literature Review

2019 ◽  
Vol 8 (2) ◽  
pp. 121
Author(s):  
Yu Lu ◽  
Diandian Ma
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Insider Trading ◽  
Internal Control ◽  
Capital Market ◽  
Information Quality ◽  
Empirical Literature ◽  
Affecting Factors ◽  
Debt Contracting

The purpose of this essay is to review empirical literature on internal control weakness over the past seven years. I use an analysis framework consisting of determinants (corporate governance and other affecting factors) and economic consequences (accounting information quality, market reaction, cost of equity, debt contracting) of weakness disclosure and its remediation. Basic findings of prior studies agree that corporate governance and firm characteristics influence the presence of control problems and their remediation. In turn, the effectiveness of internal control impacts the quality of financing reporting, auditor reaction (auditing fees and audit delays), insider trading and leads to capital market consequences (the weakness disclosures affect debt contracting). More internal control studies combine with capital market and provide evidence that SOX are not always effective. Overall, these findings contribute to profession by suggesting that the disclosures of internal control deficiencies generally convey incremental information on the quality of financial reporting to investors. This review integrates and assesses current internal control weakness research and offers some suggestions for future study.

scholarly journals Factors affecting financial management: Case study of educational manager training and fostering public institutions

2021 ◽  
pp. 1861-1870
Author(s):  
Thang Quyet Nguyen ◽  
Ha Thanh Viet ◽  
Le Thi Thanh Loan
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Financial Management ◽  
Quantitative Research ◽  
Reporting System ◽  
Positive Impact ◽  
Specific Model ◽  
Ho Chi Minh City ◽  
Quantitative Research Methods ◽  
Factors Affecting

The research focuses deeply on and evaluates the factors affecting financial management of educational managers training and fostering institutions in Ho Chi Minh City, Vietnam. This is a very specific model for countries in transition economies as in Vietnam, a country is in the process of comprehensive renovation, restructuring public service delivery institutions, increasing the assignment of self-responsibility to institutions, reducing financial pressure on the State budget. Using qualitative and quantitative research methods together with techniques, i.e., testing reliability scales with Cronbach's alpha coefficients, exploratory factor analysis EFA, CFA and linear model SEM, the study investigated 500 samples in 07 educational institutions in Ho Chi Minh City, Vietnam. The findings revealed six (06) factors, which are internal control system, technology infrastructure, top managers’ commitment, cash management and budget system, organizational responsibility, affected the financial reporting system, and meanwhile, the financial reporting system has a positive impact on the financial management. Based on this result, the study has proposed implications for improving financial management in educational managers training and fostering institutions in Ho Chi Minh City, Vietnam.

scholarly journals PELAKSANAAN FUNGSI APARAT PENGAWAS INTERN PEMERINTAH (APIP) UNTUK MENUNJANG TINGKAT KEWAJARAN LAPORAN KEUANGAN PEMERINTAH KOTA MANADO

2016 ◽  
Vol 7 (2) ◽  
Author(s):  
Merry Inggrid Siwy ◽  
David P.E. Saerang ◽  
Herman Karamoy
Keyword(s):  
Control System ◽  
Local Government ◽  
Financial Reporting ◽  
Internal Control ◽  
Financial Management ◽  
Internal Audit ◽  
Financial Statements ◽  
Internal Auditor ◽  
Internal Control System ◽  
The Government

Internal Audit is the whole process of audit activities, the Review, evaluation, monitoring and supervisory activities other against the implementation of tasks and functions of the organization in order to provide reasonable assurance that the activities have been carried out in accordance with the benchmarks that have been set effectively and efficiently for the benefit of the leadership to Realize good governance.Accountability and transparency in the new government could be achieved if all levels of leadership controlling activities on the overall activities in their respective agencies . Internal control system ( SPI ) is a process that is integral to the actions and activities carried out continuously by the management and all employees to provide reasonable assurance on the achievement of organizational goals through effective and efficient , the reliability of financial reporting , the safeguarding of state assets, and compliance with legislation. To strengthen and support the effectiveness of internal control over the SPI made ​​implementation of tasks and functions of government agencies including state audits carried out by the internal control official Government ( APIP ) .The auditor's responsibility to detect fraud or irregularity embodied in the planning and execution to obtain reasonable assurance about whether the financial statements have been prepared in accordance with established standards.The purpose of this study was to analyze the functions of Government Internal Supervisory Apparatus (APIP) / Internal Auditor in supporting reasonable levels of Local Government Finance Report Manado City. Respondents were selected are few skilled examiner at the office of the Inspectorate of Manado. Approach Using Qualitative methods Ethnography.APIP functions that work well to prevent fraud , to produce valuable output to be input to the external auditor , the executive and the legislature to improve financial management and accountability in the area of ​​the future . Eksternal Auditor may use the results from the monitoring APIP mainly reviews the financial statements of the government , supporting the management of local government in implementing the recommendations and improvements  Internal control system . APIP professional and independent encourage increased transparency and accountability in financial management to improve the fairness of the financial statements . Keywords: Government Internal Supervisory Apparatus, fraud detection, the fairness of the financial statements

scholarly journals EFFECTS OF INTEGRATED FINANCIAL MANAGEMENT INFORMATION SYSTEM ON PERFORMANCE OF PUBLIC SECTOR IN NIGERIA

2020 ◽  
Vol 4 (7) ◽  
pp. 32-39
Author(s):  
Oyinlola Michael ◽  
Folajin Oyewale ◽  
Balogun Oladosu
Keyword(s):  
Public Finance ◽  
Information System ◽  
Public Sector ◽  
Service Delivery ◽  
Financial Reporting ◽  
Internal Control ◽  
Management Information System ◽  
Financial Management ◽  
Management Information ◽  
Independent Variables

The purpose of this study is to analyse the effectiveness of Integrated Financial Management Information System (IFMIS) on performance of public sector in Nigeria. Public finance management has come under immense scrutiny by donor community as well as general public in a call for enhanced accountability of the government expenditures for an improved public service delivery. To analyse the effectiveness of identified factors on the use of the system, descriptive and inferential statistics were used. The sample size was drawn from the sections of finance department that includes, budgeting, procurement and internal audits, and at public works department where the financial systems are applied. The study revealed that there was a positive relationship between the effectiveness of IFMIS on public financial management and the independent variables; financial reporting, budgeting, internal controls and projects as was revealed in the regression analysis. The study concluded that there was a relationship between IFMIS in public finance and financial reporting, budgeting, internal control and government projects as 72.4% of the effectiveness of IFMIS was accounted for by the study independent variables. The relationship gave 95% confidence level of effectiveness. The study recommended that the IFMIS be enhanced and improved at system development level so that it gives real figure and factor in more functions of operation linked to financial service for better service delivery.

scholarly journals The Relationship between Financing Policy, Earnings Management and Governance Practices

2016 ◽  
Vol 8 (1) ◽  
pp. 230
Author(s):  
Yi-Mien Lin ◽  
Hsiu Fang Chien
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Internal Control ◽  
Audit Quality ◽  
Principal Component ◽  
Price Impact ◽  
Real Earnings Management ◽  
Management Tools ◽  
Financing Policies ◽  
The Relationship

<p>This paper examines the effect of managers manipulated earnings management methods on the firm’s financing policies and investigates the relationship between internal control, audit quality, and earnings management. We adopt the two-stage model to control self-selection of earnings management and the principal component analysis to extract the first principal component as the corporate governance. The findings show that firms choose the earning management tools in advance in year -1. Corporate governance can restrain real earnings management, but the effect decline when firms engaged in financing activities. Only the larger shareholdings of institutional investors and firms audited by industry specialist can restrain real earnings management when firms undertake financing policies. The firms of issuing bonds choose real earnings management to avoid frequent outsider monitoring. And then, it causes operating performance to decline continuously two years after bond financing. Moreover, investors don’t correct the price impact of earlier earnings overstates for SEOs and bonds sample. </p>

Corporate Governance and Internal Control over Financial Reporting: A Comparison of Regulatory Regimes

2009 ◽  
Vol 84 (3) ◽  
pp. 839-867 ◽  
Author(s):  
Udi Hoitash ◽  
Rani Hoitash ◽  
Jean C. Bedard
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Internal Control ◽  
Audit Committee ◽  
Section 404 ◽  
Sarbanes Oxley ◽  
Material Weaknesses ◽  
Financial Expertise ◽  
Financial Expert ◽  
Section 302

ABSTRACT: This study examines the association between corporate governance and disclosures of material weaknesses (MW) in internal control over financial reporting. We study this association using MW reported under Sarbanes-Oxley Sections 302 and 404, deriving data on audit committee financial expertise from automated parsing of member qualifications from their biographies. We find that a lower likelihood of disclosing Section 404 MW is associated with relatively more audit committee members having accounting and supervisory experience, as well as board strength. Further, the nature of MW varies with the type of experience. However, these associations are not detectable using Section 302 reports. We also find that MW disclosure is associated with designating a financial expert without accounting experience, or designating multiple financial experts. We conclude that board and audit committee characteristics are associated with internal control quality. However, this association is only observable under the more stringent requirements of Section 404.

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