SAN DIEGO STATE UNIVERSITY COLLEGE OF BUSINESS ADMINISTRATION The Latest Research in Corporate Governance: Accounting Martha Doran, Ph.D.

Academic Update and Discussion of Accounting Literature: Overview Research Methods Areas for Discussion  Global Perspective  Financial Reporting and SOX  Accountability and Fraud  Practitioner Journals Future Issues and Research Questions

Research Methods Basic  Empirical  Behavioral Applied  Case Studies  Practitioner Issues

Discussion Areas: Global Perspective International Regimes: The Case of Western Corporate Governance, David A. Detomasi, International Studies Review: Vol. 8, pp  Likelihood of convergence (form; barriers)  Norms,values,principles...Consensus?  Regime theory applied to empirical inquiry  Regime theory for emerging market economies  Global governance

Global (cont.) Corporate Governance, Economic Entrenchment and Growth, Randall Morck, Daniel Wolfenzon, & Benard Yeung, National Bureau of Economic Research Working Paper Cambridge, MA: August 2004 (63 pp.).  Outside US/UK, pyramidal control structure common  Ownership structure vests control with families investing little real capital  Diverting of resources for private benefits  Economy-wide misallocation of resources  Economic entrenchment and political influence

Discussion Areas: Financial Reporting & SOX Audit Committees’ Oversight Responsibilities Post Sarbanes-Oxley Act, Hassan R. HassabElnaby, Amal Said, & Glenn Wolfe. American Journal of Business: Fall Vol. 22, Iss. 2, pp. 19 – 32.  SOX increased perceptions of responsibilities  Becoming institutionalized  Audit Committee accounting expertise  Audit Committee self-assessment

Discussion Areas: Fraud & Accountability Business Leaders Take on Fraud, Journal of Accountancy. New York: Jan Vol. 203, Iss. 1, pp  “Delicate balance” between encouraging performance and discouraging unethical conduct to achieve results  Not as much the issue as the company reaction  Can’t count on government to reduce fraud  Europol(European Police)- Concerned because skilled CPAs and attorneys are for hire to facilitate “liquidation constructions”  China: Dilemma to catch up from gov’t economic oppression – Now told “to get rich is glorious”, without a developed system of ethics for today’s China

Discussion Areas: Practitioner Journals The Wall Street Slide, Gerard Baker. The International Economy. Washington: Spring Vol. 21, Iss. 2, pp , 82. Flirting with SOX 404 Marianne Bradford & Joe Brazel. Strategic Finance. Montvale: Sep Vol. 89, Iss. 3, pp

Future Issues & Research Questions What matters most to business in terms of governance issues? What level of participation will academics be able to expect from business? What value does academic research in business add to corporate governance?

SAN DIEGO STATE UNIVERSITY COLLEGE OF BUSINESS ADMINISTRATION The Latest Research in Corporate Governance: Accounting Martha Doran, Ph.D.