ja_mageia

Lazarides, Th., Argiropoulou, M., Drimpetas, E., Koufopoulos, D. and Ioannou, I. (2008), ”Agency Theory, Disclosure as the Major Factor of Success for Corporate Governance and Enterprise Systems”, 4^th European Conference on Information Systems Management, Leadership and Governance, Reading, UK, 27-28, November, pp.103-112.

http://www.academic-conferences.org/ecmlg/ecmlg2008/ecmlg08-home.htm 

Abstract: This study investigates whether there is a direct relationship between Corporate Governance (CG) and Enterprise Systems (ES). In doing this, the paper discusses the connection between agency theory and the adoption of ES and suggests that the problem of asymmetry of information can be solved partly with the usage of ES that guarantee that CEOs and managers effectuate their fiduciary duty as conductors of information inside and outside of the firm. Moreover, we review the basic information requirements for compliance with the Sarbanes-Oxley Act (SOX) and the OECD’s Principles of Corporate Governance. This analysis reveals that corporate governance principles can not be implemented without the implementation of modern enterprise systems that can secure disclosure and transparency. On the other hand ES implementation can benefit from corporate governance control, accountability, and transparency mechanisms.