Corporate Governance Mitigates Board’s Conflict Of Interest And Corporate Fraud | SEKOLAH PERNIAGAAN DAN EKONOMI UPM
» Corporate Governance Mitigates Board’s Conflict Of Interest and Corporate Fraud

Corporate Governance Mitigates Board’s Conflict Of Interest and Corporate Fraud

by Yang Chik Adam*
Multimedia University, Malaysia
Full Text: Link

Abstract

Boards of directors are one of the centerpieces of corporate governance. Corporate governance commonly explained the way in which a company is managed by the board of directors, scrutinized and held accountable. The governance of companies has been the subject of increasing interest following the East Asian financial crisis in 1997. Central to this governance mechanism is the board of directors. Concerns have been expressed on the levels of responsibility, accountability and transparency of the board in managing the company. Good corporate governance requires a range of regulatory checks and balances or mechanisms so as to be effective. If one mechanism fails, the system will fail like a chain with a weak link. The objective of this paper is to offer solution(s) and explain briefly of the mechanism in order to have a good corporate governance system for the board of directors to mitigate issues on conflict of interests and corporate fraud. It is of particular relevance since 2001, the collapsed of major corporations around the world trigged the concerned on the potential for corporate fraud especially financial statement fraud. 

Keywords: Corporate governance, board of directors, conflict of interests, corporate fraud

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Kemaskini:: 27/06/2022 [syazmer]

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