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Corporate Governance and Financial Reporting in the Nigerian Manufacturing Industry: an Ethical Perspective

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Corporate Governance and Financial Reporting in the Nigerian Manufacturing Industry: an Ethical Perspective
CHAPTER ONE
1.1 BACKGROUND TO THE STUDY
The original need for corporate governance stems from the separation of ownership and control in publicly held companies in the 19th century, it is pertinent at this point to note that this separation has brought about overzealous managers and passive owners. Investors seek to invest their capital in profit-making firms so that they can enjoy these profits in the future. Yet many investors lack the time and expertise necessary to operate a firm and ensure that it provides an investment return. As a result, investors hire individuals with management expertise to run the company on a daily basis to see to it that the firm’s activities enhance the company’s profitability and long-term performance.
In order to have the assurance on the money invested, investors look to the published annual reports and accounts of the business and other information releases that the company might make.
The recent spate of corporate debacles have damaged seemingly unassailable corporate reputations and undermined the confidence of investors and the general public in the international financial system. It has been as a result of these corporate failure that corporate governance has take center stage drawing the attention of the international financial services industry to the increasing significance of corporate governance and opened the subject to intensive and extensive discussions and debate at various international financial and economic fora. In 1999 alone there were 274 conferences in 39 countries on the subject. (Mansur, 2007)
These high profile corporate debacles have arisen despite the fact that the annual reports and accounts seemed fine. These corporate debacles have had an adverse effect on many people: Shareholders, Government, Employees and the company itself. Examples of such include; Enron in the United States Of America, World Com in the United States of America, Parmalat in Italy, Barings Bank of the United Kingdom, Cadbury



Bibliography: Adewunmi, W. (1998). Ethics in the Financial Services Business. Lagos, Nigeria: The CIBN Press Egwuonwa, R Mallin, C.A. (2007). Corporate Governance (2nd Edition), Oxford University Press. United Kingdom. Millichamp, A. (2002). Auditing 7th Edition: London, Continuum Tower Building Publisher Ojo, O Spiceland, Sepe and Tomassini (1992). Intermediate Accounting, 4th Edition, New York McGraw-Hill Book Company. Unegbu C.K.(2004). Corporate Governance in Banking and other financial institutions. Lagos, Nigeria: CIBN Press JOURNALS Anderson G. and M. Orsagh (2004), “The Corporate Governance Risk”, Electric Perspectives, 29(1), p 68. Ofoegbu,G, E, Okoye (2006). The Relevance of Accounting and Auditing Standards in Corporate Financial Reporting in Nigeria, The Nigerian Accountant, October/December, Vo1.39p 45-51 Okereke Osisioma, H.E.(2000). Accounting and Performance Measurement: Performance Reports and Financial Statements in Successful Management in Changing Times. Journal of Social Sciences, Lagos: DVC Press. Kurmar, R. (2007). Corporate Governance and Ethics – Challenges and Imperatives. Retrieved on the 19th of January 2008 from www.cvc.nic.in Ogbuotob C Rezaee, Z. (2003), The 6-legged stool (High Quality Financial Reporting) Retrieved March 18th, 2009 from www.immanet.org PAST PROJECTS Akpan E.J. (2008). Accounting Ethics and Financial Reporting: The Professional Perspective. An undergraduate research work in Covenant University, Ota . Ogun, Nigeria.: (Unpublished). Fofah, T. (2008, April). Corporate Governance and Financial Reporting in the Banking Industry. An Ethical Perspective. An undergraduate research work in Covenant University, Ota . Ogun, Nigeria.: (Unpublished) SEMINAR PAPERS Center for international Private enterprise: Instituting Corporate Governance in developing, emerging and transitional economies. A Handbook( March 2002) Mansur A Molokwu, B.S. (2002). Building an appropriate frame work for corporate governance. Financial Institutions Training Centre. OTHERS Central Bank of Nigeria. (2006). CBN Code Of Corporate Governance For Banks In Nigeria Post Consolidation. Lagos: The Central Bank of Nigeria Corporate Affairs Commission Meyer, P. E. (2007). Accounting and Bookkeeping. (Microsoft Student 2008). Redmond, Washington.

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