Accountability and efficiency and the decision of whether to appoint the incumbent audit firm to provide non-audit services

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Corporate governance: a critical analysis of the effectiveness of boards of directors in public entities in Zimbabwe

The degree to which a country’s public entities observe basic principles of good corporate governance is an increasingly important factor for attracting investment capital, maintaining economic stability and encouraging growth. Zimbabwe is faced with the challenge of restructuring for greater efficiency and creating an investment-friendly environment, therefore practicing good corporate governance in public entities is crucial for success and economic growth. As business entities, public entities need to be managed effectively by a competent board, which is able to construct and implement strategies that are in the best interests of the entity and all stakeholders. This study focuses on the corporate governance initiatives, laws and regulations aimed at enhancing the effectiveness of boards of public entities in Zimbabwe. The key question addressed is whether or not the corporate governance initiatives and legal and regulatory reforms in Zimbabwe are sufficient to enable boards of public entities to effectively discharge their duties and meet internationally accepted corporate governance standards. A comparative analysis of Zimbabwe’s public entities corporate governance framework to that of South Africa (a developing country like Zimbabwe) and Australia (a developed country with similar common law heritage) is also conducted. Recommendations are made on how best to enhance the effectiveness of boards of public entities in order to promote good corporate governance practices in Zimbabwean public entities. The research established that the existing corporate governance framework has not been effective in improving the effectiveness of Zimbabwe public entity boards due to lack of commitment and consistency, political interference, weak enforcement mechanisms, corruption and general disregard for the rule of law. The research found that South Africa and Australia have performed better than Zimbabwe in terms of creating conducive environments for boards of public entities to effectively discharge their duties. To improve the effectiveness of public entity boards, it was found that boards should be properly empowered, government intervention should be minimised, board appointment processes should be transparent and merit-based, boards should be properly composed, board remuneration should be fair and performance related, the performance of the board should be regularly evaluated and effective enforcement mechanisms should be put in place.Mercantile LawLL. D

The Impact of Cultural Variables on the Performance of U.S. Overseas Managers and on Performance Measurement Criteria: an Exploratory Study

The study is related to the perceived impact of selected cultural variables on the performance of U.S. executives working overseas. Consideration given to these variables for the measurement of performance at the corporate headquarters was also researched in the course of the study. For the purpose of this study, twelve foreign cultural variables were chosen. The general perception of these variables and their perceived impact on the eight specific aspects of performance among the U.S. overseas managers was examined. An attempt has also been to made to ascertain the general perception of these cultural variables among evaluators and the consideration they assign to their perceived effect on the specific aspects of managerial performance in their evaluation of overseas managers. Five regions were chosen for the study on the basis of their being representative of distinct cultural clusters: Far East (more populous than some of the other regions with strong family ties and leanings toward collectivism) , Middle East (religion oriented), Africa (tribal), Europe (industrially advanced) and South America (developing countries). Data were obtained from all the five regions. In all 127 responses were received from the U.S. overseas managers. A total of eighteen responses were received from the evaluators for these five regions. Statistical tests were undertaken to explore the similarities and differences in perception of the twelve selected foreign cultural factors, their perceived effect on the eight specific aspects of managerial performance within and between the five selected regions, and between U.S. overseas managers and their evaluators. Statistically significant differences were identified in the mean responses from U.S. overseas managers regarding their general perception of the cultural factors and their perceived effect on specific aspects of performance within and between regions. However, the differences in the effects of a cultural factor on the selected eight aspects of managerial performance were not statistically significant at a global level although among regions these differences were statistically significant. From a global (aggregate) perspective, the tests failed to identify any statistically significant difference between evaluators' and managers' general perceptions of cultural factors and their perceived effects on the selected aspects of managerial performance. Within African, European and Latin American regions there are some statistically significant differences between managers and evaluators pertaining to a few of the cultural factors. The study has attempted to identify those cultural variables which have differential perceived and considered impact on various aspects of performance. The differential impact of these variables on performance measurement on a regional basis was also studied. Step wise discriminant analysis was employed to identify those cultural variables whose general perception and the perceived effect on the specific aspects of managerial performance would distinctly identify the region. This study by exploring the differences in perceptions of the twelve selected cultural factors and their perceived and considered effect on the specific aspects of managerial performance among managers and evaluators, it is submitted, has helped create a new perspective on measurement, analysis and evaluation of managerial performance on a more comprehensive basis. After measuring the compatibility of managers' perceptions for cultural elements and the consideration accorded to these in the evaluation process at corporate headquarters, and concluding that no statistically significant differences exist at a global (aggregate) level suggestions for future can be made. It is submitted that any differences, if remaining, between managers' and evaluators' perception of performance, can only be due to other factors which merit further investigation in future research endeavours. Multivariate discriminant analysis was employed to identify whether their exists statistically significant differences across various regions. The computed Wilks' lambda and the associated F value rejected the null hypotheses of no differences amongst regions. The stepwise discriminant procedure was used to isolate a subset of twelve variables from the ninety six variables submitted for the test. The selected twelve variables produce a robust discriminant model with a hit ratio of 99% for classification. The study successfully confirmed the existence of significant differences in the perceptions of U.S. overseas managers about the foreign cultural factors and their effects on the specific aspects of their performance. Also, the regions can be effectively differentiated (discriminated} on the basis of U.S. overseas managers' perceptions of cultural factors and their effects on their performance extant there

Corporate Governance in the Banking and Finance Sector.

A thesis submitted to the University of Wolverhampton in partial fulfilment of the requirements for the degree of Doctor of Philosophy.The focus of this thesis is an examination of certain weaknesses in the corporate governance at UK and US banks which constituted an underlying cause of the crisis. It considers the regulatory responses to these identified weaknesses and assesses to what extent these have led to improvements in corporate governance at banks. This research is based on an examination of all the failures at UK and US banks during and after the crisis, and of its related responses. In addition to UK and US responses, several solutions to the weaknesses identified at UK and US banks are addressed through EU legislation. The conclusions are that board effectiveness was low due to a lack of knowledge and of challenging of senior management; there was a culture placing growth and profit over risk management; and remuneration was structured leading to unacceptable risk taking resulting in scandals. It is concluded that the mechanisms to limit the impact of a failure of a bank on its stakeholders were inadequate. A case study of the financial crisis in US during the 1990s is undertaken to consider whether the US regulatory response offers lessons to UK regulators and legislators. The finding is that analysis of regulation and corporate governance at banks is problematic. There were similarities between the two financial crises, the organisation and culture of the UK and US banks is so different that different regulatory responses follow