Financial reporting failures, board's competency and effectiveness
Financial misreporting and accounting misstatements figure prominently in recent corporate scandals. Although the more notorious of these involved directors’ fraud and conflict of interests, there are cases that are indicative of a board that has failed to exercise its oversight duty where directors...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Palgrave Macmillan
2013
|
| Subjects: | |
| Online Access: | http://irep.iium.edu.my/33967/ http://irep.iium.edu.my/33967/ http://irep.iium.edu.my/33967/ http://irep.iium.edu.my/33967/1/aiman_journ_disclosure.pdf |
| id |
iium-33967 |
|---|---|
| recordtype |
eprints |
| spelling |
iium-339672014-01-08T04:05:46Z http://irep.iium.edu.my/33967/ Financial reporting failures, board's competency and effectiveness Mohd. Sulaiman, Aiman @ Nariman K Law (General) Financial misreporting and accounting misstatements figure prominently in recent corporate scandals. Although the more notorious of these involved directors’ fraud and conflict of interests, there are cases that are indicative of a board that has failed to exercise its oversight duty where directors were negligent, resulting in loss or damages to the company. This article highlights the following governance issues: the relevance of financial literacy or expertise and its enforceability and process, and procedures that could improve board's effectiveness. As the cases involving financial reporting failures publicly unfold in courtrooms and in the media, boards and regulators need to rethink and reconsider the suitability of current board practices and regulatory response to governance breakdowns. This article places the discussion within the context of several case studies that deal with specific instances of financial reporting failure and are of interest because of the involvement of and liability risks for non-executive directors. This article is also interesting from a comparative law perspective in view of increasing the number of companies undertaking cross-listing or dual listing of shares. A more consistent approach among the regulators is needed to prevent regulatory arbitrage. Palgrave Macmillan 2013 Article PeerReviewed application/pdf en http://irep.iium.edu.my/33967/1/aiman_journ_disclosure.pdf Mohd. Sulaiman, Aiman @ Nariman (2013) Financial reporting failures, board's competency and effectiveness. International Journal of Disclosure and Governance, 10 (2). pp. 155-174. ISSN 1741-3591 http://www.palgrave-journals.com/jdg/journal/v10/n2/full/jdg20135a.html 10.1057/jdg.2013.5 |
| repository_type |
Digital Repository |
| institution_category |
Local University |
| institution |
International Islamic University Malaysia |
| building |
IIUM Repository |
| collection |
Online Access |
| language |
English |
| topic |
K Law (General) |
| spellingShingle |
K Law (General) Mohd. Sulaiman, Aiman @ Nariman Financial reporting failures, board's competency and effectiveness |
| description |
Financial misreporting and accounting misstatements figure prominently in recent corporate scandals. Although the more notorious of these involved directors’ fraud and conflict of interests, there are cases that are indicative of a board that has failed to exercise its oversight duty where directors were negligent, resulting in loss or damages to the company. This article highlights the following governance issues: the relevance of financial literacy or expertise and its enforceability and process, and procedures that could improve board's effectiveness. As the cases involving financial reporting failures publicly unfold in courtrooms and in the media, boards and regulators need to rethink and reconsider the suitability of current board practices and regulatory response to governance breakdowns. This article places the discussion within the context of several case studies that deal with specific instances of financial reporting failure and are of interest because of the involvement of and liability risks for non-executive directors. This article is also interesting from a comparative law perspective in view of increasing the number of companies undertaking cross-listing or dual listing of shares. A more consistent approach among the regulators is needed to prevent regulatory arbitrage. |
| format |
Article |
| author |
Mohd. Sulaiman, Aiman @ Nariman |
| author_facet |
Mohd. Sulaiman, Aiman @ Nariman |
| author_sort |
Mohd. Sulaiman, Aiman @ Nariman |
| title |
Financial reporting failures, board's competency and effectiveness |
| title_short |
Financial reporting failures, board's competency and effectiveness |
| title_full |
Financial reporting failures, board's competency and effectiveness |
| title_fullStr |
Financial reporting failures, board's competency and effectiveness |
| title_full_unstemmed |
Financial reporting failures, board's competency and effectiveness |
| title_sort |
financial reporting failures, board's competency and effectiveness |
| publisher |
Palgrave Macmillan |
| publishDate |
2013 |
| url |
http://irep.iium.edu.my/33967/ http://irep.iium.edu.my/33967/ http://irep.iium.edu.my/33967/ http://irep.iium.edu.my/33967/1/aiman_journ_disclosure.pdf |
| first_indexed |
2023-09-18T20:49:02Z |
| last_indexed |
2023-09-18T20:49:02Z |
| _version_ |
1777409869545996288 |