Are We Ignoring the Early Warning Signs in Our Corporate Governance System?:Corporate Governance System – Revisited

Abstract

The purpose of this paper is to examine the aspects of the corporate governance system and suggest ways to foresee a corporate fraud in the offing. It aims to explore ways by which key stakeholders may view “early warning signs” in their assessments of an inefficient corporate governance system. Secondary method was used to collect data from several corporations that failed or faltered over the past decade due to poor corporate governance. Findings suggest that corporate governance system failures of most corporations could have been foreseen before they became public if the five key early warning signs described in the paper were closely monitored. Paying closer attention to the early warning signs mentioned here may help identify lacunas in the corporate governance system and may avert corporate debacles. The key early warning signs identified here appear to address most aspects of failure in corporate governance system. © 2009, Emerald Group Publishing Limited