In recent years, the topic of corporate governance has gained prominence as a result of the large number of attention‐grabbing corporate scandals at the board level. What was formerly a topic of interest to academics has become a burning issue worldwide for researchers and practitioners alike.
According to Sir David Tweedie, Chairman of the International Accounting Standards Board:
“Executive boards failed, non‐executives were kept in the dark, audit committees failed, auditors fell asleep at the wheel, or let problems go, credit rating agents did none too well, analysts missed it, the SEC failed to regulate, and the investment banks and lawyers (and consultants) were part of the problem, helping companies with their questionable deals … It wasn’t just one little piece gone wrong. The whole system was collapsing.” (Newing 2003, p. 6).