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21 – 30 of over 4000
Article
Publication date: 9 September 2013

Philip Urofsky and Danforth Newcomb

The purpose of this paper is to provide suggestions to the banking and finance sectors on managing FCPA risks in light of a May 2013 FCPA enforcement action against employees of a…

150

Abstract

Purpose

The purpose of this paper is to provide suggestions to the banking and finance sectors on managing FCPA risks in light of a May 2013 FCPA enforcement action against employees of a US broker-dealer.

Design/methodology/approach

The paper provides details of the May 2013 enforcement action, cites other FCPA enforcement actions in financial services, discusses various types of FCPA risks for financial services firms, lists elements the US and UK governments have considered in evaluating companies' anti-bribery compliance policies and controls, and recommends measures for financial services firms to limit FCPA risks.

Findings

The early May FCPA enforcement action makes clear that the financial services industry is very much on the radar screen of the US Securities and Exchange Commission and Department of Justice.

Practical implications

A general response to limiting FCPA risk should include the development of an effective FCPA compliance program and adequate due diligence into potential third-party partners and target companies. Recent industry experience shows the potential protection in careful and comprehensive FCPA risk identification and risk management efforts.

Originality/value

The paper provides practical guidance from experienced financial services lawyers.

Details

Journal of Investment Compliance, vol. 14 no. 3
Type: Research Article
ISSN: 1528-5812

Keywords

Article
Publication date: 20 June 2016

Matthew S. Wood, Per Bylund and Steven Bradley

– The purpose of this paper is to investigate effects of policy initiatives on entrepreneurs’ opportunity evaluation decisions.

Abstract

Purpose

The purpose of this paper is to investigate effects of policy initiatives on entrepreneurs’ opportunity evaluation decisions.

Design/methodology/approach

Factors were selected from real world policy initiatives. The model pricing power as a traditional economic base rate attribute and then considering how variance in use fees and reporting requirements changes the base rate relationship. The factors served as decision attributes in a conjoint analysis experiment. A total of 126 entrepreneurs made 2,268 opportunity evaluation decisions.

Findings

While increases in pricing power result in a positive upward base rate opportunity evaluation, government mandated use fees and reporting requirements diminish the base rate toward the negative. This suggest that that even though the likely profits are much higher with the significant pricing power opportunity, entrepreneurs heavily discount these opportunities because they view the combination of economic costs of paying high use fees and the non-pecuniary costs of reporting requirements as unappealing. Further, the authors find entrepreneurs’ disproportionately discount higher margin opportunities when the regulatory burden is higher revealing the importance of policy factors in new product introduction decisions.

Practical implications

Policy has traditionally focussed on the macro-level effects of initiatives and how they directly affect issues like economic growth. This study reveals that this is only part of the equation because changes in government policy impact entrepreneurs’ opportunity evaluation decisions that underpin macro trends. In order to be effective, policy makers need to pay greater attention to not only the economic, but also the non-pecuniary costs that policy changes evoke. This is especially true for those policies like reporting requirements that may be perceived as threats to entrepreneurs’ sense of autonomy.

Originality/value

This research brings to the foreground the relationship between the policy environment and the cognitions and decision of individual entrepreneurs whose collective actions move the economy. The net effect is new insight regarding how policy factors coalesce to influence entrepreneurs’ assessments of opportunities, often in ways that negatively affect these assessments beyond what simple economic calculations would suggest.

Details

Management Decision, vol. 54 no. 5
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 1 February 1995

George Walker

Although considerable action has been taken in an attempt to identify and correct the regulatory gaps in domestic and international banking supervision exposed by the collapse of…

Abstract

Although considerable action has been taken in an attempt to identify and correct the regulatory gaps in domestic and international banking supervision exposed by the collapse of the Bank of Credit and Commerce International (BCCI) in July 1991, the response of the European Community in the form of a proposed Prudential Supervision Directive — the so‐called ‘Post‐BCCI Directive’ — is still locked in the complex decision‐taking procedures of the Community which were further revised by the Maastricht Treaty on European Union in December 1991.

Details

Journal of Financial Crime, vol. 3 no. 1
Type: Research Article
ISSN: 1359-0790

Expert briefing
Publication date: 20 June 2017

The process has been plunged into further uncertainty by the outcome of the June 8 UK general election, which has sparked renewed debate about what kind of Brexit the United…

Book part
Publication date: 14 April 2010

Jon S.T. Quah

A statutory board is one of the three forms of public enterprise in Singapore which are involved directly or indirectly in economic development. Tan Chwee Huat has defined a…

Abstract

A statutory board is one of the three forms of public enterprise in Singapore which are involved directly or indirectly in economic development. Tan Chwee Huat has defined a statutory board as “an autonomous government agency set up by special legislation to perform specific functions (Tan, 1974, p. 102).” Similarly, Lee Boon Hiok has referred to statutory boards as “a catchall phrase for the statutory bodies which have been established by an Act of Parliament,” which specifies their rationale as well as their rights and powers (Lee, 1975, pp. 38–39).

Details

Public Administration Singapore-style
Type: Book
ISBN: 978-1-84950-924-4

Article
Publication date: 1 March 2007

To improve acquisition outcomes, in 1997 the District established the Office of Contracting and Procurement under the direction of a newly created chief procurement officer (CPO)…

Abstract

To improve acquisition outcomes, in 1997 the District established the Office of Contracting and Procurement under the direction of a newly created chief procurement officer (CPO). Since then, the District's inspector general and auditor have identified improper contracting practices. This report examines whether the District's procurement system is based on procurement law and management and oversight practices that incorporate generally accepted key principles to protect against fraud, waste, and abuse. GAO's work is based on a review of generally accepted key principles identified by federal, state, and local procurement laws, regulations, and guidance. GAO also reviewed District audit reports and discussed issues with current and former District officials as well as select state and local officials.

Details

Journal of Public Procurement, vol. 7 no. 2
Type: Research Article
ISSN: 1535-0118

Article
Publication date: 1 March 2014

Steve Modlin and LaShonda M. Stewart

Decreasing revenues among local governments across the country have placed an increased focus on governmental financial practices. For states with local government financial…

Abstract

Decreasing revenues among local governments across the country have placed an increased focus on governmental financial practices. For states with local government financial oversight organizations, the ratios and other benchmarks used to assess fiscal stability face increased scrutiny. This study examines financial reports sent to North Carolina’s financial oversight body, the Local Government Commission (LGC), to determine the types of operational and policy practices that can lead to fiscal stress based on guidelines established by the LGC. Findings indicate that lowering levels of fund balance, increased salaries, increased debt service levels, and the presence of a countywide water system all increased the probability of a county government receiving notice of potential financing problems requiring immediate action.

Details

Journal of Public Budgeting, Accounting & Financial Management, vol. 26 no. 3
Type: Research Article
ISSN: 1096-3367

Book part
Publication date: 3 September 2014

Ricardo Colón and Héctor G. Bladuell

This paper aims to help auditors manage the risk of Foreign Corrupt Practices Act (“FCPA”) violations of the companies that they audit, particularly those with operations in Latin…

Abstract

Purpose

This paper aims to help auditors manage the risk of Foreign Corrupt Practices Act (“FCPA”) violations of the companies that they audit, particularly those with operations in Latin America.

Methodology/approach

First, the paper describes the relevant provisions of the FCPA. Second, it identifies the common schemes and transactions associated with heightened risk of FCPA liability in Latin America and provides recommendations to minimize this risk. Third, it discusses the responsibilities of auditors under U.S. securities laws and regulations with respect to the FCPA violations of their clients. Finally, it describes the sanctions that auditors could face if they fail to fulfill their responsibilities regarding these FCPA violations. The paper is based on data collected from various documents including laws, cases, accounting and auditing standards, litigation releases, press releases, deferred prosecution agreements, and enforcement actions.

Findings

Auditors have a responsibility under Section 10A(a) of the Exchange Act to design procedures that provide reasonable assurances of detecting the FCPA violations of their clients, which are illegal acts with direct and material effects on the financial statements. In addition, auditors have a responsibility under Section 10A(b) of the Exchange Act to report the violations of the FCPA that they detect during the audit to the appropriate level of management. If management does not take the necessary remedial steps, auditors must report FCPA violations to the U.S. Securities and Exchange Commission. In order to reduce their FCPA-related liability and fulfill their responsibilities under U.S. securities laws and accounting standards, auditors should closely scrutinize transactions with a high risk of FCPA liability. An analysis of FCPA cases occurring in Latin America reveals six categories of transactions with heightened FCPA risk.

Originality/value of paper

While there is much literature regarding a company’s compliance with the FCPA, there has not been much literature about the auditor’s responsibilities with respect to the FCPA violations of their clients. This paper attempts to start bridging this gap by providing guidance to auditors regarding their responsibilities to detect and report FCPA violations.

Details

Accounting in Latin America
Type: Book
ISBN: 978-1-78441-067-4

Keywords

Article
Publication date: 26 March 2010

Ronald J. Huefner

The purpose of this paper is to provide an in‐depth analysis of a major fraud case in a local government setting, specifically a public school district, as a guide to managers and…

1603

Abstract

Purpose

The purpose of this paper is to provide an in‐depth analysis of a major fraud case in a local government setting, specifically a public school district, as a guide to managers and overseers of such organizations and as an instructional resource. Fraud cases outside the corporate arena have not been well represented in the literature.

Design/methodology/approach

The paper describes the multi‐faceted fraud that occurred, identifies the control, oversight and auditing deficiencies that permitted it to happen, and suggests how adherence to good practices contributes to fraud prevention. What happened, why it happened, and how it might have been prevented are discussed. An extensive state audit provides richness of detail for this case study.

Findings

The absence of, or non‐adherence to, internal controls, failures of oversight by the supervisory board, collusion among top executives, and substandard auditing all contributed to a multi‐million dollar public fraud extending over several years. The case led to new requirements for the financial management of school districts.

Practical implications

The case provides guidance to management, board members, auditors, and regulators as to how fraud can thrive when control and oversight deficiencies exist, and demonstrates how adherence to good practices can reduce the occurrence of fraud in the local government environment.

Originality/value

This paper provides a broader exposure to a major, multi‐faceted fraud case in a non‐corporate environment.

Details

Management Research Review, vol. 33 no. 3
Type: Research Article
ISSN: 2040-8269

Keywords

Article
Publication date: 30 August 2023

Samuel Buertey, Ha Thanh Nguyen and Ephraim Kwashie Thompson

Post-Sarbanes Oxley Act (SOX), the audit committee has been empowered greatly to play a central role in the corporate governance of firms. Embedded in agency theory, this study…

Abstract

Purpose

Post-Sarbanes Oxley Act (SOX), the audit committee has been empowered greatly to play a central role in the corporate governance of firms. Embedded in agency theory, this study aims to examine the effect of the audit committee on the likelihood by firms to pay dividends.

Design/methodology/approach

The study population is US firms in the Institutional Shareholder Services (ISS) database from 2007 to 2018. The authors apply the multivariate logit fixed-effect regression for the analyses after conducting the appropriate statistical tests.

Findings

From the results of the research model, the authors find that there is a positive relationship between the size and gender diversity of the audit committee and the propensity to pay dividends suggesting that a larger audit committee with substantial women representation improve the information environment in firms leading to higher dividend distribution. The extent of busyness of the audit committee impacts negatively on the propensity to pay dividends. The results are driven by high-performing firms and not driven by specific levels of firm size.

Research limitations/implications

The findings of the study give impetus to the audit committee as an important component of the corporate governance mechanism that advances the interest of stakeholders. Thus, efforts that seeks to promote the audit committee’s resourcefulness must be embraced by all stakeholders.

Originality/value

To the best of the authors’ knowledge, this study is the first to focus on audit committee and dividend payout policy of US firms post-SOX. The study demonstrates how the audit committee characteristics including its size, gender diversity and busyness affect dividend policy by mitigating information asymmetry problems.

Details

Corporate Governance: The International Journal of Business in Society, vol. 24 no. 2
Type: Research Article
ISSN: 1472-0701

Keywords

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