Do Organisations Invest in Internal Control Systems, Regardless of their Financial Results? The Greek Case

Abstract

Corporate governance is the cornerstone of effective internal control systems by modern organizations. In the last 15 years, several business giants have collapsed under the weight of illegalities and scandals as Enron, WorldCom, Guinness, Blue Arrow, Polly Peck, BCCI, Maxwell Group, Barings Bank, etc. The failure of these organizations has largely been attributed to the inadequacy of their Boards of Directors and the lack of organized and efficient control mechanisms by their administrations.