Hi, need to submit a 3500 words essay on the topic Accounting and Finance.Download file to see previous pages... With the increasing globalisation when every country can be seen as an opportunity for

Hi, need to submit a 3500 words essay on the topic Accounting and Finance.

With the increasing globalisation when every country can be seen as an opportunity for the investors the lack of understanding of effective corporate governance can adversely effect the investment intentions of investors.Nowadays corporate governance is seen as the key of attracting investors. Capital flow seems directed towards the companies, which practice fair and transparent ways of governing their organisations. With the changing global business scenario the need of understanding and effective practise of fair and technologically advance corporate governance has also increased. In my speech I will first explain the notion of Corporate Governance then we will have a brief overview of the development of corporate governance codes in the UK and the adaptation of similar codes in the EU.ICAEW (2002) has explained corporate governance in a very effective and comprehensive manner as " Corporate governance is commonly referred to as a system by which organisations are directed and controlled. It is the process by which company objectives are established, achieved and monitored. Corporate governance is concerned with the relationships and responsibilities between the board, management, shareholders and other relevant stakeholders within a legal and regulatory framework."There are no hard and fast rules for corporate governance, which can be prescribed for all the countries. ...

Accountability of the board to shareholders who have the right to receive information on the financial stewardship of their investment and exercise power to reward or remove the directors entrusted to run the company.

Transparency of clear information with which meaningful analysis of a company and its actions can be made. The disclosure of financial and operational information and internal processes of management oversight and control enable outsiders to understand the organisation.

Fairness that all shareholders are treated equally and have the opportunity for redress for violation of their rights. According to Meigs et al. (1999) this information meets the needs of users of the information-investors. Creditors, managers, and so on-and support many kinds of financial decision performance evaluation and capital allocation, among others. (P.07)

Owen (2001) traces the history of the structure of the British financial system that was shaped by the form which industrialisation took in the 18th and 19th centuries.

Following legislative changes in mid-century - principally the Joint Stock

Companies Act of 1844 and the Limited Liability Act of 1855 - a growing number of

Industrial firms converted themselves from partnerships into limited companies. Some of them remained private, while others chose to have their shares listed, either on one of the provincial stock exchanges or in London. Since than till the decade of decade of 1980s, there was no specific development in the field of Corporate Governance in UK.