CORPORATE GOVERNANCE

Corporate Governance and Audit Profession

Abstract

This work contributes to the literature of corporate governance, the analysis of the impact of management characteristics of companies in the conclusions of the UK registered companies financing. In particular, they examined the effect of board size, thickness and property management companies in the Debt / Equity described. We use a form of multiple regression to analyze how the variables affect government operations in the period to which UK companies use investment responsibility of their activities. After controlling for the profitability and development potential, we find that both board size and thickening of the property positively associated with debt-equity ratio.

Corporate Governance and Audit Profession

Chapter 1: Introduction

The capital structure decision is a well established part of the investigation for accounting and the determinants of capital structure, they fund. Modigliani and Miller (1958) is the first in this research study. Satisfied that the decision of capital structure not related to fixed value.

Also, the prefect relax and look at the corporate market forecasts in their models (Miller and Modigliani, 1963). Consequently, they find that companies will value by increasing the debt to be strengthened. Explain their results by the fact that the interest rate tax deductible and the companies that enjoy the protection of the two tax debt to finance their activities through long-term debt. But Miller and Modigliani (1963) Don not take into account the costs associated with acquired bankrupt. A natural area of expansion of these lines of research is to explore other drivers of business decisions of capital structure.

Chapter 2: Literature Search

To view the results of this study in context, as well as other environments with similar characteristics, this section contains an overview of environmental business practices in the United Kingdom. Several environmental factors influence business practice in the United Kingdom, in this section, however, summarizes some of the key environmental factors, as suggested by the literature, such as the political, economic, and social and legal business of the year 1965, the practice of UK firms and guidelines on corporate governance SACMA issued in 2006 regulates. The next thing that most countries in the Middle East, the first stage of the political, economic and social development of the country makes the environment of the audit practice of the United Kingdom significantly from those of developed countries.

The political system of the United Kingdom is a monarchy led by King. Within the political system, there are three legislative bodies that the authority to approve the initiation and / or policies, laws and rules: the Council of Ministers, the Advisory Council and various ministries. There are several groups within the political system critical issues, policy and development of new rules affect. Since the discovery of oil in 1938, oil revenue represents the largest contribution to the economy. In 1990, represented about 35% of nominal GDP, 75% of government revenue and 85% of export revenues (Economist Intelligence Unit, 2003). Table 2 shows the country's budget revenues, expenses and net surplus or (deficit) for the last three ...