From The U.s. Corporate Scandals On Corporate Governance And Market Supervision

The ongoing corporate scandals in USA, represented by Enron's scandal, have disclosed many problems, such as financial reporting falsity,corporate fraud,conflict of interest in many market watchdogs,insufficiency of market supervision and stock speculation of investors etc. All of those issues can be boiled down to corporate governance and market supervision. This paper workes over two major objects, internal corporate governance arrangements and external corporate governance market and environment, the first one focused on board of directors,management and stockholders, the latter focused on those market watchdogs, like government,security and exchange commission,auditors,financial analysts and investment bankers. The study is conducted, mainly through qualitative analysis, to investigate Enron's scandal, to analyse the status quo and problems of board of directors,management and stockholders, to analyse financial reporting supply chain and three hot topics in accounting, to analyse the circumstances and present questions of all those market watchdogs, both in their motivation and constraints, and introduce ways of improvement about their roles playing on market supervision. The conclusions are: firstly,those stakeholders and market watchdogs relevant to corporate governance are interconnectedly checked and balanced; secondly, reform on corporate governance, like systems engineering, requires all those parties' endeavor and delicate coordination of their interests; thirdly, improvement on corporate governance and market supervision demands systematic changes and innovations on the perspective,methods,processes,rules and laws. In the end, this paper sets forth some suggestions on corporate governance in China, using US's reference, and briefly summarizes present problems in China and approaches to resolve them...