مرکز منطقه ای اطلاع رساني علوم و فناوري - The Importance Of Corporate Governance And Accounting Professional Ethics In The Context Of Accounting Based Causes Of Global Fınancıal Crısıs

Abstract :

The crises seen in the globalizing world not only affect merely one country or a company but the whole world more or less. Many countries were negatively affected as a result of the global crisis that broke out in the middle of 2007 because of the mortgage loans’ not being repaid. The financial crisis had many causes. It is considered that some of the reasons of the crisis were resulted from some laws, legislations and standards of accounting which are open to abuse. These areas of accounting were manipulated by the CEO’s of the companies for their self-interests. Hereby, it has become the CEOs of the companies who got the most reaction after the global crisis. In this study, the accounting based reasons of the crisis will be explained by being analyzed the anatomy of the global financial crisis. Then, the wage determination system that caused the CEOs to manipulate the flexibilities in the accounting will be discussed. Finally; the corporate governance notion (thought to prevent the CEOs’ acting irresponsibly), and accounting professional ethics (including the merits to obey for the members of accounting profession who adjusted CEOs’ irresponsible acts) will be explained.