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Improving Corporate Governance. The role of Audit Committee Disclosures by Indian Corporations

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  • Madan Lal Bhasin

    (Bang College of Business)

Abstract

Now-a-days, an AC is being looked upon as a distinct culture for CG and has received a wide-publicity across the globe. Government authorities, regulators and international bodies all have indicated that they view an AC as a potentially powerful tool that can enhance the reliability and transparency of financial information. Being mandatory under SEBI’s Clause 49 of the Listing Agreement, an AC can be of great help to the board in implementing, monitoring and continuing ‘good’ CG practices to the benefit of the corporation and all its stakeholders. This study performs a ‘content’ analysis on the AC reports of the top 500 listed companies in India during 2005 to 2008 to determine the information content of these reports and the extent to which these reports conform to the Clause 49 requirements of the SEBI. Also, discussed are the various trends about an AC characteristics viz., size, composition, activity, as well as, the extent of non-audit services provided by auditors in the top 500 listed Indian companies. No doubt, it is essential for the Indian corporations to accept and continue with the CG reforms that are ‘demarcated’ by the challenges of the ‘new’ millennium.

Suggested Citation

  • Madan Lal Bhasin, 2012. "Improving Corporate Governance. The role of Audit Committee Disclosures by Indian Corporations," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 2(1), pages 128-149, January.
    • Handle: RePEc:hur:ijaraf:v:2:y:2012:i:1:p:128-149
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    References listed on IDEAS

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    More about this item

    Keywords

    Corporate governance; audit committee; disclosures; SEBI Clause 49; Sarbanes-Oxley Act; listing agreement; board of directors; financial reporting; India;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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