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Applied Financial Management
Finance & Accounting
Pages 7 (1757 words)
Applied Financial Management Contents Contents 2 Introduction 3 Concept of corporate governance 3 Different system of corporate governance 5 Anglo American system of corporate governance 5 Insider system of corporate governance 6 Convergence of corporate governance 7 Views in favour of convergence 7 Views against the convergence 8 Conclusion 8 Reference 9 Introduction Enron, a leading company of United States, which rose tremendously during 1990s and was rated as the most innovative company by fortune magazine, filed for bankruptcy in 2001.
The financial statements provided a favourable picture of the organization which was not true as a result the trust of the shareholders was affected with the exposure of the accounting frauds and with the collapse of the company all the stakeholder of the company were hugely affected. Another major corporate collapse was the fall of HIH Insurance which also fell due to the non transparent financial statements. The fall of a company affects not only its members but to every stakeholders which includes the economy too. The two major collapses indicated the importance of the corporate governance. Every country follow one or the other system of corporate governance but with the increase of operation of companies in different countries, should the different system of corporate governance should be converged or not is a matter of question. In this project the concept of corporate governance including the different systems of corporate governance has been discussed. With the era of globalization were different companies are operating around the globe; the topic of convergence of the different system of corporate governance has also been discussed. ...
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