Impact of Information Technology on Corporate Governance and Financial Reporting

IMPACT OF INFORMATION TEHNOLOGY ON CORPORATE GOVERNANCE AND FINANCIAL REPORTING
1.0 INTRODUCTION
The introduction of the computer and advent of the Internet has changed the way we live in the modern world. This spans across every aspect of human life. Modern innovations have led to the description of the age in which we live as “the Information age”. Information technology and management therefore plays a vital role to the extent that timely access to Information could save a life while improper management of Information could lead to huge problems and losses of opportunities. In terms of Corporate governance and financial reporting, the financial implications of these losses could be great on corporate entities when quantified in monetary terms and this has led several companies to invest in finding better ways of improving on Information systems.
Corporate scandals and failures across the globe including Enron, Worldcom, Daewoo Group (in Korea) and HIH (a major insurance group) in Australia, has raised serious questions about the way public corporations are governed around the world. This is usually characterized by managers who have been trusted with company control but due to conflicting/self interest, sometimes engage in actions that are profoundly detrimental to the interests of shareholders and other stakeholders. When managerial self-dealings are excessive and left unchecked, they often have serious negative effects on corporate values and the proper functions of capital markets. Around the world there is growing consensus that it is vitally important to strenghten corporate governance to protect the rights of shareholders, curb managerial excesses, and restore confidence in capital markets.
Last year Nigeria witnessed the sacking of Managing Directors of five of Nigeria’s top banks namely Intercontinental Bank Plc, Union Bank, AfriBank, Oceanic Bank and FinBank. This was largely due to issues relating to Corporate governance and ethical code of conduct

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