Effects of Quality of Financial Statements and CEO Turnover

Abstract

The purpose of this study is to explore the effect of CEO turnover and CFO turnover on earnings management. In addition, Taiwan’s authorities will require listed companies to complete the establishment of audit committee replacing supervisors in 2022. Corporate governance is not an overnight phenomenon. It has been existing from a long time. It is only that the beginning of 21st century when colossal enterprises started to fall, government across globe started giving it due credit. The present paper is an attempt to trace the history of corporate governance. It starts with discussing various theories which led to the development of such an important concept and then dwells on various models in which economies employ corporate governance in their structure and finally the evolution of corporate governance across globe. The paper sheds light on important committees and reforms which have been the genesis of corporate governance across globe. It undertakes an extensive literature review on different aspects of corporate governance. Corporate governance is a concept which still debatable among experts in describing it. The purpose of this study is to explore how the implementation and principal problems of good corporate governance in the management of current limited liability company.