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The Impact of Corporate Governance Disclosure on the Financial Reporting Practices in a Developing Country: Saudi Arabia. - Dissertation Example
The concept of corporate governance achieved acknowledgment since the 1980’s, when corporate organizations began exercising it as a benchmark ethical measure intended for accounting and financial reporting in addition to other fair practices…
Nevertheless, lately the definition of corporate governance has gained a broader connotation and is denoted as the legal as well as corporate set of regulations and measures that symbolize the principles and procedures which are exercised to govern the corporate organizations. The standards of corporate governance by and large assist in making sure that the aspects of the allocation of power in an organization are well maintained and there exists accountability amongst the management. The most significant contributor of corporate governance comprise of the Board of Directors as well as the senior management of a firm (Plessis et. al., 2010).
The significance of corporate governance in context of financial reporting can be elucidated by relating the association amid the business and the society. The main purpose of corporate governance is to check the negative influence of the corrupt business practices on society and the general public. The past instances of the corporate governance malfunctions have provided sufficient proofs for negative influence on society owing to corporate failure. Conversely, the theories of society and business associations elucidate that each business is indebted to the society on the whole and hence, its chief precedence is to meet the social responsibilities by not getting involved into any unprincipled business activities (Eweje, 2004). ...