Introduction to Economics II Chapter 25 Production and Growth.pdf
assignment 2 ptt.pptx
1. Lunar International College
Masters Of Business Administration
Business Ethics, Corporate Social
Responsibility, and
Governance
TITLE:-AGENCY THEORY
PREPARED BY:- TAZEBACHEW BIRKU MBA-0073/14
march 2023 G.C
Addis Ababa, Ethiopia
2. AGENCY THEORY
Definition
The main purpose is that maximizes shareholder value and minimizing risk.
Financial reporting
The quality of financial reporting can have a significant impact on a company's
ability to attract capital, and long-term success.
3. Corporate Governance And Its Impact On
Financial Reporting
Independence Board:
ensuring that the financial statements are accurate and reliable.
Effective board
Ensuring accurate financial reporting:
investors and stakeholders rely on financial reports to make informed decisions.
Managing risk:
a positive impact on financial reporting.
Effective risk management
prevent financial losses and ensure that the company's financial statements
accurately reflect its financial position.
Maintaining ethical standards:
promote ethical behavior and prevent conflicts of interest.
unethical , fraud/trade off and other forms of financial misconduct.
4. CORPORATE GOVERNANCE AND ITS
IMPACT ON FINANCIAL REPORTING
Investor relations:
providing timely and accurate information to investors and stakeholders,
Effective investor relations build trust and confidence in the company.
Employee morale:
employees feel the company is committed to ethics they are engaged and motivated.
a positive impact on performance
Compliance with regulations:
ensure that companies comply (run) with relevant laws
and regulations.
provide a true and fair view of the company's financial
position.
5. CORPORATE GOVERNANCE AND ITS
IMPACT ON FINANCIAL REPORTING
Internal controls:
establish and maintain effective internal controls to ensure that financial reporting is
accurate and reliable.
This includes processes for
ensuring that financial information is accurate and complete,
identifying and mitigating financial reporting risks, and
ensuring that financial reporting is compliant with legal and regulatory requirements.
Auditor independence:
ensure that they are independent and objective.
Thus, practices play a critical role in ensuring accurate and reliable financial reporting.
Promoting transparency:
build trust among stakeholders.
disclosing relevant financial information in a timely and accurate manner, and
providing clear explanations of financial results and accounting policies.
