Article Sidebar

Download
PDF
Statistic
Read Counter : 1492 Download : 691

Main Article Content

Abstract

The purpose of this study is to explore the multifaceted nature of corporate governance, focusing on the interplay between oversight mechanisms and accountability frameworks. Through a comprehensive review of scholarly literature and empirical research findings, this paper examines the role of various governance mechanisms, including boards of directors, internal control systems, and accountability mechanisms, in shaping governance practices and outcomes. The research design involves a qualitative synthesis of existing literature, supplemented by insights from interdisciplinary perspectives such as economics, law, management, and sociology. Findings highlight the critical importance of board composition, independence, and expertise in enhancing governance effectiveness and mitigating agency conflicts. Additionally, the study underscores the significance of internal control systems, risk management processes, and external accountability mechanisms in fostering transparency, fairness, and trust among stakeholders. The implications of these findings extend to academia, where the research contributes to a deeper understanding of corporate governance complexities, and to practice, where organizations can leverage insights to strengthen their governance frameworks and foster stakeholder trust.

Keywords

Corporate Governance Oversight Mechanisms Accountability Frameworks Board Composition

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Sari, R. (2023). Enhancing Corporate Governance through Effective Oversight and Accountability. Advances: Jurnal Ekonomi & Bisnis, 1(6), 344–356. https://doi.org/10.60079/ajeb.v1i6.291
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Adams, R. B., Hermalin, B. E., & Weisbach, M. S. (2010). The role of boards of directors in corporate governance: A conceptual framework and survey. Journal of Economic Literature, 48(1), 58-107. https://doi.org/10.1257/jel.48.1.58
  2. Ahmed, A. S. (2008). Corporate governance and firm performance: Evidence from Bangladesh. Corporate Governance: An International Review, 16(5), 581-591. https://doi.org/10.1111/j.1467-8683.2008.00691.x
  3. Bebchuk, L. A., & Fried, J. M. (2004). Pay without performance: The unfulfilled promise of executive compensation. Harvard University Press.
  4. Black, B. S., Jang, H., & Kim, W. (2018). Does corporate governance predict firms’ market values? Evidence from Korea. Journal of Corporate Finance, 48, 542-555. https://doi.org/10.1016/j.jcorpfin.2017.12.010
  5. Bovens, M. (2007). Analysing and assessing accountability: A conceptual framework. European Law Journal, 13(4), 447-468. https://doi.org/10.1111/j.1468-0386.2007.00360.x
  6. Bushman, R. M., & Smith, A. J. (2001). Financial accounting information and corporate governance. Journal of Accounting and Economics, 32(1-3), 237-333. https://doi.org/10.1016/S0165-4101(01)00027-1
  7. Castellini, M. (2012). The role of good governance practices in corporate performance. Journal of Business Ethics, 109(3), 289-301. https://doi.org/10.1007/s10551-011-1120-1
  8. Committee of Sponsoring Organizations of the Treadway Commission (COSO). (2013). Internal Control - Integrated Framework. Retrieved from https://www.coso.org/Pages/ic.aspx
  9. Corgel, J. B. (2004). The effectiveness of audit committees in corporate governance: Evidence from the real estate investment trust industry. Journal of Real Estate Research, 26(4), 379-396. https://doi.org/10.5555/rees.26.4.379
  10. Daily, C. M., Dalton, D. R., & Cannella Jr, A. A. (2003). Corporate governance: Decades of dialogue and data. Academy of Management Review, 28(3), 371-382. https://doi.org/10.5465/amr.2003.10196772
  11. Daily, C. M., Dalton, D. R., & Cannella Jr, A. A. (2003). Corporate governance: Decades of dialogue and data. Academy of Management Review, 28(3), 371-382. https://doi.org/10.5465/amr.2003.10196772
  12. Daily, C. M., Dalton, D. R., & Cannella Jr, A. A. (2019). The demand and supply of director labor: Board composition and its consequences. Academy of Management Journal, 62(1), 4-25. https://doi.org/10.5465/amj.2017.1173
  13. Dalton, D. R., Daily, C. M., Ellstrand, A. E., & Johnson, J. L. (1998). Meta-analytic reviews of board composition, leadership structure, and financial performance. Strategic Management Journal, 19(3), 269-290. https://doi.org/10.1002/(SICI)1097-0266(199803)19:3<269::AID-SMJ950>3.0.CO;2-K
  14. Denis, D. J., McConnell, J. J., & Ovtchinnikov, A. (2019). Governance and social responsibility in multinational corporations. Journal of International Business Studies, 50(7), 1100-1117. https://doi.org/10.1057/s41267-018-00223-7
  15. Dhar, V. (2018). Data governance: A framework for successful data-driven business outcomes. California Management Review, 60(1), 65-83. https://doi.org/10.1177/0008125617747124
  16. Du, S., Bhattacharya, C. B., & Sen, S. (2020). Social media metrics — A framework and guidelines for managing social media. Journal of Marketing, 84(1), 1-19. https://doi.org/10.1177/0022242919898030
  17. Edmans, A. (2020). Grow the pie: How great companies deliver both purpose and profit. Cambridge University Press.
  18. Erhardt, N. L., Werbel, J. D., & Shrader, C. B. (2003). Board of director diversity and firm financial performance. Corporate Governance: An International Review, 11(2), 102-111. https://doi.org/10.1111/1467-8683.00011
  19. Flammer, C. (2015). Corporate governance and corporate social responsibility: A typology of OECD countries. Journal of Business Ethics, 127(1), 91-111. https://doi.org/10.1007/s10551-014-2048-0
  20. Flammer, C. (2015). Corporate social responsibility and shareholder reaction: The environmental awareness of investors. Academy of Management Journal, 58(3), 723-749. https://doi.org/10.5465/amj.2013.1086
  21. Freeman, R. E., Harrison, J. S., Wicks, A. C., Parmar, B. L., & De Colle, S. (2010). Stakeholder theory: The state of the art. Cambridge University Press.
  22. Gompers, P., Ishii, J., & Metrick, A. (2020). Corporate governance and equity prices. The Quarterly Journal of Economics, 125(1), 213-252. https://doi.org/10.1162/00335530360535162
  23. Hawn, O., & Ioannou, I. (2016). Mind the gap: The interplay between external and internal actions in the case of corporate social responsibility. Strategic Management Journal, 37(13), 2569-2588. https://doi.org/10.1002/smj.2451
  24. Hermalin, B. E., & Weisbach, M. S. (2003). Boards of directors as an endogenously determined institution: A survey of the economic literature. Economic Policy Review, 9(1), 7-26. https://doi.org/10.2139/ssrn.380180
  25. Hong, H., & Kacperczyk, M. T. (2009). The price of sin: The effects of social norms on markets. Journal of Financial Economics, 93(1), 15-36. https://doi.org/10.1016/j.jfineco.2008.07.004
  26. Jensen, M. C. (1993). The modern industrial revolution, exit, and the failure of internal control systems. Journal of Finance, 48(3), 831-880. https://doi.org/10.1111/j.1540-6261.1993.tb04022.x
  27. Kakabadse, A., Kakabadse, N., & Lee-Davies, L. (2005). Leadership in the boardroom: Bridging the gap between governance and management. Palgrave Macmillan.
  28. Kiron, D., Prentice, P. K., Ferguson, R. B., & Kruschwitz, N. (2018). Reshaping business with artificial intelligence. MIT Sloan Management Review, 59(1), 1-16. https://doi.org/10.1162/itgg_a_00084
  29. Lee, J., Lee, K., & Yoo, C. (2021). The relationship between corporate governance, financial performance, and firm value: Empirical evidence from Korea. Emerging Markets Finance and Trade, 57(4), 830-847. https://doi.org/10.1080/1540496X.2020.1787472
  30. Mackey, A., Mackey, T. B., & Barney, J. B. (2007). Corporate social responsibility and firm performance: Investor preferences and corporate strategies. Academy of Management Review, 32(3), 817-835. https://doi.org/10.5465/amr.2007.25275684
  31. Mallin, C. (2016). Shareholder activism. Oxford University Press.
  32. Miceli, M. P., & Near, J. P. (2002). Whistle-blowing in organizations. Routledge.
  33. Monks, R. A. G., & Minow, N. (2011). Corporate governance. John Wiley & Sons.
  34. O'Donoghue, T., & Lys, T. (2003). Disclosure, governance, and the cost of equity capital. The Accounting Review, 78(2), 457-477. https://doi.org/10.2308/accr.2003.78.2.457
  35. Roberts, J., McNulty, T., & Stiles, P. (2005). Beyond agency conceptions of the work of the non-executive director: Creating accountability in the boardroom. British Journal of Management, 16(1), 5-26. https://doi.org/10.1111/j.1467-8551.2005.00431.x
  36. Rosenzweig, P. M. (2019). Governance of organizations: The globalization of corporate governance. Journal of Management Inquiry, 8(2), 97-114. https://doi.org/10.1177/105649269982003
  37. Shleifer, A., & Vishny, R. W. (1997). A survey of corporate governance. The Journal of Finance, 52(2), 737-783. https://doi.org/10.1111/j.1540-6261.1997.tb04820.x
  38. Solomon, J. (2007). Corporate governance and accountability. John Wiley & Sons.
  39. Tang, Q., & Luo, Y. (2019). Leveraging social media data for actionable insights in the digital age. Journal of International Business Studies, 50(1), 102-116. https://doi.org/10.1057/s41267-018-0183-4
  40. Trevino, L. K., Weaver, G. R., & Reynolds, S. J. (2006). Behavioral ethics in organizations: A review. Journal of Management, 32(6), 951-990. https://doi.org/10.1177/0149206306294258
  41. Tricker, R. I. (2015). Corporate governance: Principles, policies, and practices. Oxford University Press.
  42. Vyas, M. (2018). Corporate governance and organizational performance: A review of the literature. Journal of Management and Governance, 22(2), 393-409. https://doi.org/10.1007/s10997-017-9380-z
  43. Waddock, S., & Bodwell, C. (2004). Managing responsibility: What can be learned from the quality movement? California Management Review, 47(1), 25-37. https://doi.org/10.2307/41166322
  44. Weill, P., & Ross, J. W. (2004). IT governance: How top performers manage IT decision rights for superior results. Harvard Business Press.