Agency problem in management as a challenge for the corporation accounting system

2019 ◽  
pp. 103-115
Author(s):  
Vasyl Tsaruk
Keyword(s):  
Corporate Governance ◽  
Institutional Theory ◽  
Agency Theory ◽  
Agency Problem ◽  
Corporate Management ◽  
Accounting System ◽  
Corporate Structure ◽  
Governance System ◽  
Advantages And Disadvantages ◽  
Corporate Governance System

Introduction. Corporate governance, as a basis for ensuring the efficient use of corporate resources, can be built on a range of models that have both advantages and disadvantages. Neo-institutional theory, in particular its separate component is agency theory. It is one of the theories that allows to substantiate the reasons for the decline in the quality of implemented corporate governance systems and to formulate ways to improve it, in particular, taking into account the role of accounting in ensuring the effectiveness of their functioning. Purpose. The aim of the article is to monitor essence and peculiarities of manifestation of agency problem in corporate governance and substantiation of place of accounting in its solution. Methods. The range of research methods related to the solution of the agent problem in the corporate governance system is applied. Dialectical method of cognition and the systematic approach to the interpretation of corporate governance, the monographic method for monitoring the positions of scientists in the sphere of solving the agent problem, the abstract and logical method for theoretical generalizations and formulation conclusions are used in the research. Results. The necessity of accounting development in solving the agency problem in corporate management is substantiated. The peculiarities of the development of neo-institutional theory as a theoretical basis of corporate governance are revealed. The necessity to study agency theory as a means of solving problems in corporate governance is substantiated. The essence of agency problem in corporate structures is revealed and the causes of its occurrence are identified. The theoretical principles of agency problem in corporate structures are highlighted. Cases of manifestation of agency problem in corporate structures are analyzed. The basic directions of improvement of the accounting system of the corporate structure with the purpose of minimizing consequences of occurrence of agency problem are highlighted. Discussion. It is advisable to focus on optimizing specific elements of the corporate accounting system in further research in order to avoid agency issues in the corporate governance system.

scholarly journals Corporate governance and agency theory: Megacable case

2018 ◽  
Vol 2 (1) ◽  
pp. 59-69 ◽  
Author(s):  
José G. Vargas-Hernández ◽  
María Elizabeth Teodoro Cruz
Keyword(s):  
Corporate Governance ◽  
Best Practices ◽  
Agency Theory ◽  
Small And Medium Enterprises ◽  
Empirical Literature ◽  
Governance System ◽  
Financial Reports ◽  
Cable Operator ◽  
Corporate Governance System ◽  
Medium Enterprises

The objective of this research is to determine the importance of the implementation of a corporate governance system in the Mexican company Megacable in its development, from the review of the theoretical and empirical literature. Therefore, a descriptive and explanatory study was carried out that describes the concepts related to the aforementioned elements. and financial reports of two periods are analyzed, as well as the main attributes that explain the success of the company. Among the main results obtained are that the Megacable group is the cable operator; Mexico’s largest internet and telephony in terms of subscribers, its structure as a controlling company that is managed through a series of subsidiaries and controlling companies and smaller operating companies in the same sector. It can be concluded that implementing efficient corporate governance among small and medium enterprises will have a clearer way of how to implement and execute the plans and best practices that will allow them to be leaders in their sector.

scholarly journals The Analysis of Limited South Asian Corporate Governance Standards after Financial Crisis-Cases in India and Malaysia

2020 ◽  
Vol 3 (1) ◽  
Keyword(s):  
Corporate Governance ◽  
South Asian ◽  
International Standards ◽  
Corporate Structure ◽  
Governance System ◽  
Corporate Scandals ◽  
Audit System ◽  
Corporate Governance System ◽  
Code Of Corporate Governance ◽  
Governance Risk

After the recent global crisis, corporate scandals and bankruptcy in US and Europe, there is some certain evidence on weak corporate governance, risk management and audit system. The 2009 India Code of Corporate Governance also revealed that during the crisis time, there are certain weaknesses although corporate structure is fairly durable. Hence, this paper chooses a different analytical approach and among its aims is to give some systematic opinions. First, it classifies limited South Asian representative corporate governance (CG) standards into each group: India and Malaysia latest CG principles covered, so-called relative good CG group, while it uses ACCA and OECD and ICGN principles as reference. Second, it , through analysis, identifies differences and advantages between above set of standards which are and have been used as reference principles for many relevant organizations. Third, it establishes a selected comparative set of standards for South Asian representative corporate governance system in accordance to international standards. Last but not least, this paper covers some ideas and policy suggestions.

scholarly journals The key challenges of corporate governance of firms: Empirical evidence from Sub-Saharan African anglophone (SSAA) countries

2016 ◽  
Vol 13 (3) ◽  
pp. 415-433
Author(s):  
Adeoye Amuda Afolabi
Keyword(s):  
Corporate Governance ◽  
Empirical Evidence ◽  
South African ◽  
Vital Role ◽  
Accounting System ◽  
Governance System ◽  
Listed Firms ◽  
Corporate Governance System ◽  
Governance Practices ◽  
Sub Saharan

This paper uses empirical evidence to identify views about the important components of good corporate governance practice for listed firms in Sub-Saharan African Anglophone countries. This study used survey questionnaire based on international corporate governance norms, data were collected from listed firms in Ghana, Nigeria and South Africa. The findings include: In Ghanaian and South African firms there are evidence that regulatory framework and enforcement of corporate governance promote sound corporate governance system. This study revealed that commitment of board of directors to disclosure and communication may provide effective corporate practices. Political environment and ownership structure of firms’ hinder sound corporate governance practices. Accounting system operating in each country plays a vital role in promoting sound corporate governance system. However, societal, cultural and corruption seem to deter corporate governance system in Ghanaian and South African firms. We recommend that there should be prudent monitoring of corporate governance rules and enforcement.

scholarly journals The effectiveness of the enterprise corporate management system: the socio-economic aspect and the evaluation methodology

2018 ◽  
Vol 27 (3) ◽  
pp. 258-263
Author(s):  
I.V. Perevozova ◽  
Kh.V. Obelnytska ◽  
D.D. Perevozova ◽  
A.V. Plikhtiak
Keyword(s):  
Corporate Governance ◽  
Negative Influence ◽  
Evaluation Methodology ◽  
Corporate Management ◽  
Governance System ◽  
The Social ◽  
Corporate Governance System ◽  
Corporate Management System ◽  
Further Development ◽  
Integral Indicator

Within the scope of the article a number of author's researches on the further development of methodological approaches to the construction of the overall integral indicator of the socio-economic efficiency of the enterprise corporate governance system are based on taxonomic analysis.  The author's approach allowed to reveal partial integral coefficients of the social and economic components of the overall integral indicator of the socioeconomic efficiency of the enterprise corporate governance system, the main directions of increasing the socioeconomic efficiency of the enterprise corporate governance system on the basis of partial equalization of the negative influence of disintegrate and the supportive effect of stimulating factors.  The method of estimating the synergy effect of the combination of social and economic aspects of the system of corporate governance of entities and subdivisions of the system is developed, which, unlike the others, allows determining the level of coherence and organization of interaction of its elements in the process of functioning, taking into account changes in time.

scholarly journals Ways to solve agency problems in corporate structures with using accounting information: non-institutional aspects

2019 ◽  
pp. 145-151
Author(s):  
Vasyl Tsaruk
Keyword(s):  
Corporate Governance ◽  
Agency Problem ◽  
Accounting Information ◽  
Agency Problems ◽  
Accounting System ◽  
Governance System ◽  
Opportunistic Behaviour ◽  
Logical Method ◽  
The Moment

Purpose. The aim of the article is to analyse and substantiate the ways to solve the consequences of an agency problem in corporate structures based on the use of accounting information. Methodology of the research. The theoretical basis of the research is the scientific works of domestic and foreign scientists on the problems of accounting information formation in the issues of solving agency problems in corporate structures. The following methods are used to achieve the goal of the study: general scientific methods (abstraction, comparison, generalization, analysis, synthesis) – to know the basic elements of accounting information; critical analysis and systematic approach – when disclosing the characteristics of the main elements of solving an agency problem in corporate structures; abstract and logical method – to formulate the conclusions of the study. Findings. The types of opportunistic behaviour regarding the moment of contracting according to agency theory are substantiated. The role of accounting information at the pre-contractual stage of activity of corporate structures is determined. The features of understanding of accounting as one of the basic elements of the corporate governance system, which allows to minimize the consequences of an agency problem, are revealed. The role of accounting information at the post-contracting stage of corporate structures activity is determined. Originality. The possibility of using accounting information for the implementation of opportunistic behaviour by agents in the activity of corporate structures is substantiated. The ability of the accounting system to counteract the hidden intentions that agents may have after contracting has been identified. A matrix classification of approaches to solving the consequences of agency problems in corporate structures has been developed. Practical value. Implementation of the components of accounting information proposed in the study will allow to substantiate the role of accounting information in the application of each of the selected approaches to solving the consequences of the agency problem in corporate structures. Key words: corporate governance; agency problem; adverse selection; moral hazard; accounting information.

scholarly journals Methodology and practice of building a new end-to-end corporate governance system for the agro-industrial complex

2021 ◽  
Vol 1 (8) ◽  
pp. 18-28
Author(s):  
E. V. Gusakov
Keyword(s):  
Corporate Governance ◽  
Management System ◽  
Cluster Formation ◽  
Organizational Structures ◽  
Corporate Management ◽  
Industrial Complex ◽  
Governance System ◽  
Corporate Governance System ◽  
End To End ◽  
Definition Of

A conceptual model of the organization and functioning of the agro-industrial complex management system as a mega-cluster formation has been constructed, which includes four main blocks: organizational, economic, legal and institutional, which contain their inherent instruments and levers of regulation. Based on the above, the definition of the management model of the agro-industrial complex as a mega-cluster organization has been formulated. In development, an appropriate definition of the organizational and economic model of corporate governance of the agro-industrial complex as a mega-cluster is given. A set of factors that affect the management system in the agro-industrial complex has been established, and their brief interpretation is given. It has been established that in the modern practice of the agro-industrial complex, several main groups of models can be distinguished, typical for all levels of management: A. Incomplete – not all levels of management are covered; B. Traditional – all functions and organizational structures can be present in the management system; C. Market models – correspond to the specifics of management in market conditions; D. Innovative – based on combining the best aspects of all known models. On this basis, it was revealed that at present, the solution of most of the problems of the agro-industrial complex is possible, first of all, through the development of an end-to-end system of corporate management of agro-industrial production as a megacluster infrastructure.

scholarly journals КОРПОРАТИВНАЯ СИСТЕМА УПРАВЛЕНИЯ АКЦИОНЕРНЫМИ ОБЩЕСТВАМИ В РЕСПУБЛИКЕ БЕЛАРУСЬ

2018 ◽  
pp. 19-22
Author(s):  
И. Н. Рабыко
Keyword(s):  
Corporate Governance ◽  
Management System ◽  
Supervisory Board ◽  
Independent Directors ◽  
Corporate Management ◽  
Financial Risks ◽  
Governance System ◽  
Corporate Governance System ◽  
The Republic ◽  
Corporate Management System

Formulation of the problem. The development of the economy of the Republic of Belarus actualizes the improvement of corporate governance in joint-stock companies, since the largest enterprises of the republic are joint-stock companies. The subject of the research is to assess the current state of the corporate management system of joint-stock companies. The aim of the research is to reflect the role of the corporate management system of joint-stock companies in the Republic of Belarus as a tool for minimizing financial risks. The object of research is the development processes of the corporate management system of joint-stock companies of the Republic of Belarus. The methods used of the research are logical, comparative, analytical, scientific and methodological. The hypothesis of the study is the assumption of the dependence of the quality of the corporate management system of joint-stock companies and their financial risks. The statement of basic materials. An analysis of the world experience of the corporate governance system of joint stock companies shows that the number of independent directors ranges from 15 to 50% of the members of the board of directors (supervisory board) of the joint stock company. These are primarily requirements for issuers of securities, their corporate management system. Originality and practical significance of the research. Banks have obliged to include in the supervisory board at least two independent directors, making high demands on them. They should confirm their business reputation by certification in the National Bank of the Republic of Belarus. Conclusions of the research. The stages of creating a corporate governance system for joint-stock companies confirm the existence of a sufficient regulatory framework and best practices for creating effective corporate governance systems that allow you to manage risks, especially financial ones, and attract international investors.

ANALYSIS OF THE CORPORATE GOVERNANCE SYSTEM OF PJSC “LUKOIL”

2021 ◽  
Vol 2 (4) ◽  
pp. 198-205
Author(s):  
Vladimir Vladimirovich Filatov ◽  
Marina Vladimirovna Buzulutskaya ◽  
Alexander Vladimirovich Olimpiev ◽  
Sergey Alexandrovich Tikhachev
Keyword(s):  
Corporate Governance ◽  
Governance System ◽  
Corporate Governance System
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