Corporate Governance

Shil, N. C. (2008). Accounting for good corporate governance, JOAAG, Vol. 3. No. 1

Accounting for Good Corporate Governance
Nikhil Chandra Shil1

Abstract Good corporate governance (GCG) is a mandatory requirement in today’s corporate world by every stakeholder groups. Failure of giant corporate groups in last two-three decades strengthens the demand further. And surprisingly, in some of such failures, accounting as a discipline is held liable. The way accounting is practiced or the interpretations that may give different prescriptions in similar situations are some dark areas that may open some scope for the corrupted accountants. Still, the author believes that such claim against accounting is undue and unfounded. The paper is an earnest effort to uncover the issue and to protect it from such unfounded critics. It covers the concept of corporate governance, its legal framework, its current status and how accounting may be practiced to protect corporate from corruption by establishing governance. Keywords: corporate governance, accounting, comply-or-explain, Sarbanes-Oxley (SOX)

1

Senior lecturer of Accounting, Department of Business Administration, East West University, Dhaka, Bangladesh. Email: nikhilacc@yahoo.com

22

Shil, N. C. (2008). Accounting for good corporate governance, JOAAG, Vol. 3. No. 1

Introduction Good corporate governance (GCG) in a corporate set up leads to maximize the value of the shareholders legally, ethically and on a sustainable basis, while ensuring equity and transparency to every stakeholder – the company’s customers, employees, investors, vendor-partners, the government of the land and the community (Murthy, 2006). GCG is a must for ensuring the required values to different stakeholder groups. It enhances the performance of corporations, by creating an environment that motivates managers to maximize returns on investment, enhance operational efficiency and ensure long–term productivity growth. Consequently, such... [continues]

Read full essay