Cameroon being an OECD country has not only to comply with OECD rules/ principles of corporate governance but also with that of Cameroon. The growth of DSX appears to be very limited and is being attributed to high capital stipulation for companies’ enlistment and hence the status of corporate governance reporting is speculative until the main study is completed.
Companies are motivated to furnish as much information as are required for their investors and other stakeholders through the process of what is known as corporate governance for which codes have been developed. This facilitates corporate governance reporting which nowadays stock exchanges in which the companies are listed make it mandatory as one of the listing conditions.
Corporate governance is ancient but the term is new. It is as old as trade and the idea of governance is even older. Corporate governance was recognized as a problem by Shakespeare (1564-1616) in his play The Merchant of Venice wherein Antonia, the merchant is portrayed as watching in agony as his ships sail out of port, “having entrusted his fortune to others”. (p4). Corporate governance arises where there is separation of ownership and control. The agency issue whenever a principal relies on others (agents) to manage the affairs of his/her business has long been a matter of concern. Tracing the history of corporate governance, one finds its evolution from the days of craft guilds of medieval Europe through the days of East India Company and other chartered companies of 17th century until it became a standard practice with the Cadbury report of 1990s following the collapse of big companies as a result of poor and/ or fraudulent management from whom the shareholders are separated by virtue of the nature of company constitution. Corporate governance is not management which is responsible for day to day running of enterprises. It is the governing bodies that ensure the enterprises are run in the right direction