The Influence of Corporate Governance on the Strength of Auditing and Reporting Standards: Evidence from EU Countries

Author:Univ. Lecturer Cristina BOŢA-AVRAM, Ph. D.; Associate Prof. Paula Ramona RĂCHIŞAN, Ph. D.

JEL:M40, M42, M21, M14

DOI:

Keywords:corporate governance, audit standards, reporting standards, efficacy of corporate boards, ethical behaviour of firms, EU countries

Abstract:
The aim of this paper is to investigate the extent to which some certain corporate governance dimensions, such as efficacy of the corporate boards and ethical behaviour of firms, have a positive and direct influence on the strength of auditing and reporting standards. Previous studies have shown the determinant influence of some corporate governance characteristics, so that it is reasonable to expect that strength of auditing and reporting standards is significantly influenced by the efficacy of corporate boards and ethical behaviour of firms. Using the regression analysis over the indicators computed by World Economic Forum in its report “The Global Competitiveness Report 2012-2013”, selected for European countries, the findings confirm the research hypothesis concerning the link between the strength of auditing and reporting standards and some elements of corporate governance frameworks such as efficacy of corporate board and ethical behaviour of firms. \r\n\r\n

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