Shared Flashcard Set

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Corportate Governance
Corportate Governance
13
Accounting
Graduate
02/26/2012

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Cards

Term
Corporate governance effectiveness
Definition
The extent to which the company’s corporate governance is achieving its objectives.
Term
Corporate governance rating
Definition
Ratings metrics or systems that gather, analyze, rank, and compare corporate governance practices of public companies.
Term
External governance mechanisms
Definition
External operations that are designed to monitor the company’s activities, affairs, and performance to ensure that the interests of management, directors, and officers are aligned with the interests of shareholders and other stakeholders.
Term
Integrated aspect
Definition
Focuses on both shareholder value creation and enhancement and stakeholder value protection.
Term
Internal governance mechanisms
Definition
Internal operations that are designed to manage, direct, and monitor corporate activities.
Term
Oversight
Definition
Supervision of management by the board of directors to maintain the best interests of the company and its shareholders.
Term
Remuneration
Definition
Another term for compensation.
Term
Shareholder aspect
Definition
Concept that the corporation exists for the benefit of shareholders, and therefore, emphasizes shareholder value creation and enhancement as the primary objective of corporations.
Term
Stakeholder
Definition
Individual or group that has an interest in the decisions, operations, and performance of a company, and who has input in those decisions. Stakeholders include: investors, creditors, suppliers, customers, employees, governments, regulators, standard-setters, competitors, and any other interest groups or users of the organization’s financial reports.
Term
Stakeholder aspect
Definition
Premise that a company’s success depends on the contributions of investors and other key groups and how well it manages the relationships with those groups which consist of shareholders, creditors, employees, supplies, customers, and communities.
Term
Transparency
Definition
Openness and understandability of the company’s disclosures to both internal and external audiences.
Term
Three Components of Corporate Governance
Definition
Principles, Functions, Mechanisms
Term
Principles of Corporate Governance
Definition
Honesty, resiliency, responsibility, transparency
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