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Chapter 9: Governance and ethics - Coggle Diagram
Chapter 9: Governance and ethics
Introduction to corporate governance
Governance
Corporate Governance
: set of relationship giữa managers, BODs, shareholders, other stakeholders với nhau
Purposes --> why need corporate governance --> ở dưới các perspective khác nhau
Public policy perspective: South Africa's King Report
Leadership
Sustainability
Good corporate citizenship
Stakeholder perspective
Corporate perspective
Stewardship perspective
2. Good/poor governance
Conflicts between stakeholder's interests
2.2. Symptoms of poor corporate governance
domination of the board
no involvement by the board
inadequate control function
lack of supervision
Không có/ thiếu vắng sự ảnh hưởng internal/external auditors
emphasis on short-term profitability, leading to concealment of problems or errors, or manipulation of financial statements to achieve desired results
Không có/ thiếu vắng sự ảnh hưởng internal/external auditors
misleading financial statements and information
3. Factors affecting corporate governance
3.1. Financial system
Function
Consist 3 elements:
Intermediaries
Securities
Market
Bank-based system
Market-based system
3.2. Institution shareholder:
Gây ảnh hưởng lớn tới các công ty
Có 2 power, bth thì nó low interest nhưng có thể đẩy lên high interest bất cứ lúc nào
Khi nó quan tâm nó sẽ giám sát chặt chẽ hơn, khiến các công ty nghiêm túc cố gắng hơn để run business tốt hơn --> thúc đẩy good corporate governance
3.3. Culture and legal system
Masculinity v Femininity
Masculinity v Femininity
Power distance (PD)
Long-term orientation
Uncertainty avoidance
Indulgence v Restraint