Corporate Governance

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Corporate governance refers to the administration, internal oversight, and executive actions of a corporation. In the wake of accounting scandals in 2000 and 2001, at companies such as Enron, Tyco, and WorldCom, governance became a major regulatory issue. In 2002, the U.S. Congress passed the Public Company Accounting Reform and Investor Protection Act of 2002 (Sarbanes-Oxley Act), which established and enhanced governance standards in corporate boards, management and accounting firms.[1]

Subsequent to thefinancial crisis of 2007-08, corporate governance re-emerged. Lax risk management, oversight, and accounting standards among financial entities have been blamed for the near-collapse of the financial system.[2]

Since 2008, regulatory bodies around the world have proposed and begun to implement changes in the governance structure of financial entities, including:


References

  1. โ†‘ Sarbanes-Oxley Act of 2002. SEC.
  2. โ†‘ The Corporate Governance Lessons from the Financial Crisis. OECD.
  3. โ†‘ U.K. Shakes Up Bank Regulation. The Wall Street Journal.


Last modified on 30 September 2011, at 08:56