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Corporate Governance: Introduction, Roles, Codes of Corporate Governance

Corporate Governance: Introduction, Roles, Codes of Corporate Governance
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Author(s): Marios Eugene Menexiadis (National and Kapodistrian University of Athens, Greece)
Copyright: 2021
Pages: 17
Source title: Machine Learning Applications for Accounting Disclosure and Fraud Detection
Source Author(s)/Editor(s): Stylianos Papadakis (Hellenic Mediterranean University, Greece), Alexandros Garefalakis (Hellenic Mediterranean University, Greece), Christos Lemonakis (Hellenic Mediterranean University, Greece), Christiana Chimonaki (University οf Portsmouth, UK)and Constantin Zopounidis (School of Production Engineering and Management, Technical University of Crete, Greece & Audencia Business School, France)
DOI: 10.4018/978-1-7998-4805-9.ch003

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Abstract

Corporate governance is the cornerstone for the organization, when it comes to effective internal control systems by modern organizations. Over the last 20 years, several business giants have collapsed under the weight of illegalities and frauds, such as Enron, WorldCom, Guinness, Maxwell Group, Barings Bank, etc. The impact of the failure of these organizations on the economies in which they were operating was particularly significant and had a negative impact on those directly or indirectly associated with them. The shareholders, as well as all stakeholders such as suppliers, customers, creditors, employees, and governments of the countries where the above organizations were active, were adversely affected. The failure of the organizations was attributed to the inadequacy of their boards and the lack of organized and effective control mechanisms by their management.

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