Financial Institutions' Internal Control Mechanisms & Corporate Governance
| Autor: | Wen-Hua Liao, 廖文華 |
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| Rok vydání: | 2005 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 93 Since the year 2000, the Enron case and a series of corporate scandals caused widespread concern on the issue of corporate governance. The United States enacted the Sarbanes-Oxley Act in response to the strong demand of legal framework reform regarding corporate governance. To conform to the international trend and to deal with the corporate scandals in financial statements that emerge in endless streams, Taiwan also started to construct and develop a series of corporate governance legal framework. Financial institutions are highly restrained. They manage much greater assets than normal corporations and unlike normal corporations, the assets of financial institutions does not come from shareholders mainly. A financial institution’s crisis often causes systematic risk and would damage the entire economical order. All these reasons reveal that financial institutions are in more desperate need of corporate governance than normal corporations. The corporate governance of financial institutions is particular in that it differs from normal corporate governance, which emphasizes on the protection of shareholders’ interests. Financial institutions also have to focus on the protection of the interests of other capital providers and the public. The corporate governance measures and standards should be more complete and strict than those of normal corporations. There are growing numbers of scandal in the financial industry in Taiwan. We are too dependent upon government’s external supervisory. The resources of financial supervisory authority are all too concentrated in the post-crisis problem solving mechanisms. However, government’s over intervention in the financial system not only causes financial institutions to neglect their responsibility of internal control, it is also proof that external supervisory and post-crisis problem solving mechanism are both expensive and inefficient. The internal control mechanisms of financial institutions are the front line in the prevention of corporate scandals; even the external supervisory acts mostly rely on off-sites methods. Moreover, the accuracy and effects of external supervisory acts are determined by the standards of corporate governance measures and the integrity and truthfulness of the financial statements. Hence the first priority of financial supervisory authority is to construct a corporate governance legal framework that centers on internal control and beforehand problem preventing mechanisms to reduce supervisory costs and improve the effects. Therefore, this study intends to analyze the corporate governance framework of financial institutions in US, and UK and to make some feasible suggestions on reformation of our corporate governance regulations for reference in constructing a comprehensive corporate governance legal framework. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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