International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

 

CORPORATE GOVERNANCE FAILURE AND ITS IMPACT ON FINANCIAL REPORTING WITHIN CHOSEN COMPANIES
Norlia Mat Norwani, Zam Zuriyati Mohamad, Ibrahim Tamby Chek

Abstract
This paper was produced with regards to corporate governance and financial reporting issues. It specifically discussed on the failure of corporate governance that led to failure in financial reporting. Few cases had been explored in this paper to prove the influence of corporate governance in financial reporting such as Perwaja Steel, Technology Resources Industries (TRI), Transmile, Megan, Malaysian Airlines System (MAS), Port Klang Free Zone (PKFZ), Enron and WorldCom (WC). This paper also highlighted the challenges and recommendations that need to be improved. Enforcement and monitoring became the main hurdles in establishing the good corporate governance. Transparency in financial reporting coupled with minority shareholder involvement was foreseen to give a helping hand pertaining to this topic. The accountability of auditors was recommended to ease the corporate governance and financial reporting matter.

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