Search

Copyright of Journal of Selçuk University Social Sciences Vocational School is the property of Journal of Selcuk University Social Sciences Vocational School and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In the digital age, integrated ERP solutions are the best way to efficiently manage an organization's business and resources, as they contain a number of specific modules for accounting, human resources, production, sales and purchasing. This system is designed to provide efficiency and transparency to all operations performed by organizations. The aim of this paper is to explore how ERP systems are a reliable solution in the context of corporate reporting. The modules of this system facilitate the collection, storage, and analysis of an organization's financial and operational data, building a solid foundation for accurate and correct reporting of results, especially its performance. The case study in this paper is summarized as a quantitative analysis based on a questionnaire, which aims to highlight the advantages and challenges of using an ERP system in the context of financial and operational reporting of organizations. The conclusion of the paper emphasizes the importance of using ERP systems in the corporate reporting of organizations, highlighting the main benefits they bring in terms of operational efficiency, data transparency and correct decision making.

Translation plays a crucial role in ensuring legal compliance and effective policy implementation in today's digitized and globalized era. This paper aims to highlight the significance of translation in modern governance by examining the challenges, best practices, and impact of translation in rule-making, policy implementation, and stakeholder engagement. By conducting an in-depth scan of literature concerning policymakers, translators, and other key stakeholders to collect rich qualitative data on governance documents, the paper demonstrates how translation enhances transparent communication and facilitates meaningful engagement with stakeholders. In light of Gilmetdinova's (2019) research, the paper addresses various challenges in translation, including timing, accuracy, handling legal and technical terms, cultural references, equipment, and the use of target languages. Furthermore, the paper showcases best practices in translation, such as thematic analysis, communities of practice, multilingual approaches, and the utilization of translation software to expedite high-quality translations. Ultimately, the paper emphasizes how translation contributes to refining governance processes in rule-making, policy implementation, and stakeholder engagement, fostering inclusivity, transparency, and accountability. It is anticipated that future research will explore the role of translation in healthcare systems and organizations. [ABSTRACT FROM AUTHOR]

Purpose: The use and usefulness of integrated reports have in the recent time constituted a subject of debate in practice and academic with contradicting findings. However, integrated reports represent a development in corporate reporting necessitated by the growing demand by stakeholders to obtain balanced information about companies on which to make decisions. The aim of this paper is to investigate how users perceive the use and usefulness of Namibian listed companies' annual integrated reports (IRE) for decision-making. It also seeks to assess whether there are any significance differences in perceptions of the use and usefulness of IRE information among different user groups. Methodology: Users of integrated reports were polled using a questionnaire survey method to collect primary data. The questionnaires were sent to representatives of stakeholders from NSX-listed companies as users. Descriptive statistics, such as one-way ANOVA, were used to evaluate the results. Findings: The study examines the perceived usefulness of Integrated Reporting (IRE) components such as SPLOCI, SFP, and ER, finding their usefulness statistically significant for decision-making. The One-way ANOVA results indicate no significant differences in users' perceptions of IRE's usefulness, encouraging preparers to disclose necessary information confidently. However, two-way ANOVA reveals significant differences in decision usefulness attributes, suggesting certain IRE components are more useful. Consequently, Namibian companies may voluntarily disclose these components to meet stewardship obligations.. Unique Contribution to Theory, Practice and Policy: The results show that users of IRE produced by publicly traded companies in Namibia find it useful. Furthermore, it demonstrates that various user groups' views of the use and usefulness of IRE does not vary significantly. Regulators and standard setters tasked with implementing accounting principles/standards relevant to integrated reporting should be interested in the findings outlined in this paper. As a result, the findings could be beneficial to regulatory bodies in Namibia (e.g., the Public Accountants and Auditors Board) in improving the disclosure practices of listed companies in Namibia (e.g., on a voluntary basis) and increasing capital market transparency. [ABSTRACT FROM AUTHOR]

This review systematically investigates the body of scientific knowledge on value relevance in accounting and reporting fields through a mixed method integrating bibliometric and systematic literature review (SLR) instruments. A dataset of 918 journal articles published from 1996 to 2020 was identified and processed by combining different bibliometric instruments. Findings highlight the most influential articles, journals, authors and countries and the most relevant thematic clusters: IFRS introduction and value relevance of accounting data; Capital market, earnings and equity book values; intangibles and non-financial information; Fair value accounting and goodwill. The main insights from the most relevant contributions were discussed for each cluster. Promising research areas and future research opportunities were also outlined. To the best of the authors' knowledge, this is the first study that integrates bibliometric and SLR instruments to provide a comprehensive outlook of the scientific debate originating from value relevance research. [ABSTRACT FROM AUTHOR]

This article asks how politicization changes the standardization of biodiversity in the realm of corporate sustainable reporting (CSR) frameworks. The study encompasses three areas: First, the participatory processes in standardization; second, the substantive prioritization of conservation considerations over economic aspects within standards; and third, the interplay between private and public standard-setting bodies. It argues that the European Union (EU) is taking on a more assertive role, shaping corporate reporting practices and the standards established by private organizations. Additionally, the standard-setting process is evolving from a technical exercise to a more politicized undertaking. The introduction of the EU Green Deal (EUG) brought in new biodiversity regulations, CSR frameworks, and standards, resulting in a new dynamic in politicizing biodiversity standardization. As a result, the number of actors with opposing interests is increasing, thereby intensifying the contestation of the standardization of biodiversity. Therefore, political rather than technical considerations increasingly drive biodiversity standardization processes in the EU. The EU is progressively expanding its role in two distinct yet complementary ways. Firstly, it is implementing political objectives through targeted reporting. Secondly, it provides an arena in which various actors are included. To elaborate on this argument, a qualitative analysis in the European context is conducted, highlighting the dynamics in the development of standards in CSR frameworks. Accordingly, the analysis encompasses standards and frameworks proposed by the EU, as well as by private standard-setting bodies GRI, ISO, ISBB, and CDP.

This article contributes to understanding how global standards are disseminated, adopted and modified in specific contexts. It does so with attention to two factors: economic logics and socio-cultural logics. These factors are explored in the context of the distribution of corporate governance standards in two developing countries in Southeast Asia, namely, the Philippines and Malaysia. The article examines part of a UK-based corporate governance code, a 'comply or explain' regulatory compliance approach, that has been adopted by many countries around the world. While some jurisdictions have maintained the standard unadulterated, others have opted to innovate. Both the Philippines and Malaysia have adopted comply or explain; however, while the Philippines has continued with the adopted approach, Malaysia has shifted to an apply or explain an alternative approach. The article argues that countries adopt and modify corporate governance standards to align with the norms of dominant providers of foreign investment rather than economic logics. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to examine how governing bodies demonstrated stakeholder engagement during the time of the COVID-19 crisis in South Africa. Design/methodology/approach: This study uses a qualitative approach based on semi-structured interviews with 18 participants, comprising of preparers of financial statements, board members and management consultants/advisors. The study also relied on the analysis of articles on corporate webpages and publications produced by professional bodies on the economic, social and environmental impact of COVID-19. Findings: The results of this study indicated that governing bodies demonstrated stakeholder engagement during times of crisis through transparent reporting, corporate social responsibility initiatives and active stakeholder inclusivity. Originality/value: This study contributes to the body of research on stakeholder engagement during a crisis and provides evidence of the role stakeholder inclusivity can play in responding to a crisis. The findings will be useful in understanding the importance of stakeholder engagement during times of crisis. The study is one of the first, to the best of the authors' knowledge, to evaluate how stakeholder engagement principles can be followed by governing bodies during a crisis. [ABSTRACT FROM AUTHOR]

Policymakers, academics, and practitioners are increasingly discussing non-financial reporting (NFR) initiatives, i.e., reporting initiatives that are related to environmental and social matters. The implementation of NFR initiatives in the context of small and medium-sized enterprises (SMEs) is a key topic. Based on a systematic literature review, this article first synthesizes what we know about the mechanisms underlying NFR initiatives implemented by SMEs. A thematic analysis led to the identification and examination of drivers, enabling factors, and challenges for NFR initiatives. Relevant drivers include legitimacy-based motivations, competitive advantage, and stakeholder engagement. Enabling factors include specific guidelines and tools for NFR. Lack of capabilities and lack of standardization are significant challenges. Second, drawing on the thematic analysis and on what we do not know about NFR in the context of SMEs, a novel conceptualization of NFR as a process characterized by three main phases is presented. Last, this article suggests future research opportunities. [ABSTRACT FROM AUTHOR]

As a result of the massive digitalization of recent years, ERP systems have started to play an important role in the life cycle of an organization, raising a number of challenges and opportunities especially for the accounting and auditing profession. The accounting and the auditing professions represent two very versatile professions as a result of the changes that have taken place from the moment of their appearance until now, they are constantly improving with the evolution of digitalization. Digitalization has led to the development of accounting and auditing organizations and of course to the focus of attention on sustainability processes and how their corporate reporting is done. The many advantages that ERP systems offer to professional accountants and auditors, as well as other categories of users, have influenced many organizations to resort to the implementation of these systems. Thus, to highlight the main challenges and opportunities that ERP systems offer to the accounting and auditing profession from the perspective of how to ensure sustainability and corporate reporting, the authors performed a quantitative bibliometric analysis, selecting a sample of Web of Science cited articles. The results indicated that ERP systems have a major impact on the decisions adopted by organizations, more specifically they ensure a true picture of the organization's situation, having a significant influence on the way of corporate reporting and on sustainability.

With the development of environmental reporting, the concern about the greenwashing behavior of companies has increased, so the aim of the current research is presenting a pattern of greenwashing phenomenon in corporate reporting. This research is practical in terms of purpose and it is a meta-synthesis research in terms of the nature of data analysis. For this purpose, by referring to english and persian studies published in reliable databases, in all geographical areas and during the years 1381 to November 1402 (2002 to November 2023), 53 articles were identified with the prisma method, also Shannon's entropy was used to rank the concepts. The validation of the output of the meta-synthesis method has been done using 11 experts who were selected using the snowball sampling method. In the current research, greenwashing pattern is presented using the seven-stage method of Sandelowski and Barroso, this pattern includes 5 main categories (including causal factors, contextual factors, interventing factors, prevention strategies and consequences of greenwashing), 22 concepts and 124 codes. The results also show that in each of the main categories, the motivation to gain legitimacy, the lack of related laws, the existence of institutional shareholders, environmental scandal and promotion of legal mechanisms are the most important. The presented pattern of the current research can be useful for managers and researchers interested in the field of environmental reporting, in order to gain a comprehensive understanding of the concept of greenwashing, to evaluate the importance and weight of each of the components in the greenwashing. [ABSTRACT FROM AUTHOR]

To study how populist sentiments have increasingly influenced businesses in society, we examine how German and Swedish corporations addressed the refugee situation in their 2015 and 2016 annual reports. We find that corporations changed their communication once refugee migration became subjected to populist political sentiments, but that they did so without subscribing to those sentiments. Although populism is based on such sharp oppositions as welcoming refugees or closing borders, our analysis shows that corporations have found ways to communicate about the refugee migration beyond these oppositions. Rather than taking a political stance, the corporations studied have primarily articulated the refugee situation as it pertains to their business operations. We identify four modes of articulation: the refugee as someone needing international aid, as a factor for economic analysis, as a benefit recipient, or as a potential stakeholder. These findings help nuance our understanding of how corporations navigate contested political issues. [ABSTRACT FROM AUTHOR]

This article investigates the relationship between unselfconscious corporate virtuosity and corporate performance using a novel methodology. It contends that honesty in presenting CSR activities is a proxy for corporate virtuosity and that syntheticity of language indexes unselfconscious honesty in corporate reporting. The study's research question is: Is there evidence that being more corporately ethical in the absence of concern about being so perceived enhances hardcore measures of organisational performance? To answer this question, a linguistic analysis of sustainability reports of firms operating in the Mining, Crude Oil Production Industry is undertaken to reveal that firms' financial performance varies as a function of a particular kind of straightforward language use in corporate reporting. This exercise provides evidence that unselfconscious corporate virtuosity is associated with better corporate financial performance. Implications for practice of this finding are explored. [ABSTRACT FROM AUTHOR]

Businesses are embedded within nature. Their supply chains, operations, and products fundamentally depend on and impact nature. These impacts and dependencies can give rise to nature-related risks (as well as related opportunities). However, despite growing expectations from stakeholders, most businesses are currently not adequately measuring and reporting on these. To date, it has not been clear whether this requires the development of entirely new indicators, or whether various existing sustainability reporting frameworks could provide sufficient information on nature-related risks. This paper evaluates the decision-usefulness of existing indicators for the softwood plantation forestry industry in Australia. Decision-usefulness is assessed against three criteria: (1) relevance and completeness; (2) faithful representation; and (3) comparability. The results show some potential for adaptation of indicators already used in sustainability-related corporate accounting and reporting, which could help reduce the reporting burden and encourage uptake. However, gaps remain in measuring the financial consequences for business from nature-related risks and in providing sufficient comparable information to evaluate performance across industries and locations. Implications are discussed in relation to recent recommendations from the Taskforce on Nature-related Financial Disclosures (TNFD) and International Sustainability Standards Board (ISSB) sustainability standards IFRS S1 and S2.

Given the global trends and initiatives for environmental preservation and transition to sustainable development, the corporate sector has been facing a turning point in corporate reporting. The sustainable business requirements also initiate a series of new challenges in the financial and accounting sector related to the development of accounting solutions for integrating sustainability issues into financial statements. In addressing the green transition problems, the EU has adopted the Corporate Sustainability Reporting Directive (CSRD), which modernizes and strengthens the rules concerning the social and environmental information companies must report in their financial statements. The research was carried out by conducting a survey among the population interested in corporate finances, especially accountants. The main goal of the research is to analyse the impact of sustainable reporting regulation on the corporate sector’s financial performance and companies’ operations in Bosnia and Herzegovina. The results show that EU CSRD will significantly impact doing business and performances of companies and that the companies that adapt to new sustainability reporting regulations will have higher chances of obtaining positive financial performances and adequately addressing the increasing demand of stakeholders for more comprehensive business reporting.

Problematic issues of the development of theory of management accounting in context of improving corporate governance and increasing requirements from various stakeholders to its information support are increasingly becoming the object of research by domestic and foreign scientists. The purpose of this study is to identify the trends in the development of management accounting in the conditions of digitalization of the economy, and the transformation of business processes under the influence of changes in business environment as well as justification and substantiation of the new functions of management accounting in connection with the changing requirements of corporate governance and the need to improve its information support. To achieve this goal, the methods of synthesis and analysis, abstraction, deduction and induction, comparison and systematization were used, as well as a critical analysis of existing views on the essence of management accounting, its functions and possible development scenarios, taking into account transformations in accounting science and practice observed in the third decade of the XXI century. In the process of work the results of own researches conducted and received within the framework of the scientific school of the Financial University “Accounting-analytical and control processes of economic subjects of information society” and in the course of practical activity of the authors were used. Based on the analysis of literary sources, the requirements of national and international standards in the field of both accounting and financial reporting and in sustainable development, current accounting practices and corporate governance practices, new management accounting functions have been identified and justified, the implementation of which is aimed at the formation and presentation of better quality data and information as part of corporate reporting with predictive value. The results obtained can be used by economic entities in optimizing accounting and control processes and developing internal regulations on management accounting, as well as by accounting regulatory entities and professional organizations in developing recommendations in the field of management accounting for various economic entities.

In recent decades, more and more researchers and practitioners have expressed their interest in sustainable development and sustainability. Since it was introduced in 1987, the concept of sustainable development has been treated by the United Nations in various ways, which are of reference not only to countries but also to companies. However, a clear understanding of how organizations should address sustainability is still missing, despite all efforts to encourage companies to improve their triple balance sheet. Today, sustainability reporting has become a common practice among the world’s leading companies as individuals are increasingly taking environmental, social, and governance (ESG) factors into account in their investment decisions. Nevertheless, adapting to a business environment where responsible investment becomes the rule poses several challenges to organizations. Even though transparency and non-financial reporting are gradually gaining ground and receiving more and more attention in Europe, there is still considerable emphasis on financial reporting in the eastern part of the continent. Consequently, in this paper, the authors are looking to identify how several selected companies listed on BVB (Bucharest Stock Exchange) (from different industries) take into account ESG values. They achieved their goal by conducting a content benchmark analysis, which emphasized the similarities and differences between the reports of the companies included in the analysis, issued over different periods. Last but not least, there were highlighted the standards and the non-financial reporting tools considered in the analysis carried out.

One of the most important strategic challenges faced by enterprises today is that, on the one hand, prerequisites are emerging at the institutional level that require disclosure not only of accounting (financial) reporting data, but also a large amount of non-financial information. An enterprise that is active in the information environment and demonstrates the transparency of its activities is trusted by a large number of stakeholders, which leads to their active involvement in its activities. On the other hand, excessive disclosure of information is a significant threat to the economic security of a business, and requires significant costs for organizing accounting, reporting and control. The object of the research is the information disclosed by the backbone enterprises of the Samara region. The purpose of the study was to obtain an objective assessment of the quantity and quality of information disclosed by enterprises. The results of the study were obtained as part of the approbation of the methodology developed by the author for assessing the quantity and quality of information disclosed by enterprises (using the example of the backbone enterprises of the Samara region) in the form of quantitative indicators and serve as the basis for a discussion on the expediency and scale of disclosure by enterprises of information about their activities.

The increasing importance of Environmental, Social, and Governance (ESG) assessments in advancing the international sustainable development agenda necessitates the disclosure of ESG reporting information by public companies. Such disclosure plays a crucial role in facilitating effective global business communication with stakeholders and enhancing the credibility of ESG transparency measurements. The primary objective of this study is to develop and validate a robust model for a business transparency index. By leveraging mathematical tools, this model quantitatively measures the level of Environmental, Social, and Governance (ESG) transparency, taking into account the requirements of stakeholders and evaluating a public company's ability to disclose comprehensive information.The research hypothesis posits that assessing ESG transparency in public company reporting based solely on the "quantity" of estimated values, while neglecting the critical factors of "quality" and "reliability," undermines the accuracy and reliability of the results. By utilizing existing mathematical tools, a business value management model is constructed, incorporating a balanced system of "quantity," "quality," and "reliability" factors present in the ESG information disclosed in public company reports.The research methodology adopts a comprehensive approach, combining logical and structural analysis, mathematical modeling, and content analysis methods. A thorough examination of the regulatory framework, international and Russian practices, and scientific research in ESG disclosure reveals the emergence of authoritative professional standards and frameworks between 2000 and 2023. These standards and frameworks play a pivotal role in shaping the disclosure of financial and non-financial information related to sustainable development in corporate reporting. However, a significant gap exists in established practices for determining ESG transparency levels. Current "transparency indices" fall short in incorporating these factors, leading to methodological incomparability and gaps in assessing the "quality" and "reliability" of estimated values.To address this gap, the authors propose a novel mathematical model for the ESG transparency index in corporate reporting. This model effectively integrates the factors of "quantity," "quality," and "reliability" within the disclosed information of public companies. Through a comparative analysis of disclosure and verification practices across various types of activities within Russian public joint-stock companies (PJSCs), the established model enables the creation of an industry rating gradation. This rating gradation assists in determining the level of information disclosure about public companies' activities, fulfilling societal (state) requirements and optimizing business objectives.

AbstractThe study explored the relationship between corporate governance and the confidence of bank employees in the Ghanaian banking sector and further investigate the mediating role of corporate reporting disclosures. The data for the study was gathered through the administration of questionnaires to selected employees from the 23 banks operating in Ghana after the sector’s crisis from the year 2018 to 2022. Using the stratified and purposive sampling technique, 276 bank employees constituted the study sample. The study employed the Partial Least Square Structural Equation Modeling (PLS-SEM) to analyze the data using the SMART-PLS software. The findings of the study revealed that, corporate governance significantly relates with employees’ confidence; corporate reporting disclosures significantly relates with employees’ confidence; corporate governance significantly relates to corporate reporting disclosures; and finally, corporate reporting disclosures mediate the relationship between corporate governance and bank employees’ confidence. The study contributes new perspectives to literature; provides model for government, regulators and policy makers to review existing policies and initiate new policies on governance of banks; and a guide to managerial decisions and strategies. The study has critical implications for theory, policy and practice. Theoretically, the study explored the stakeholder theory and contributed to literature. From the perspective policy, the government, regulating agencies such as Bank of Ghana (BoG) and Securities and Exchange Commission (SEC) will be guided by the findings to review existing reforms and initiate new and sustainable policies. Finally, the empirical findings have significant practical implications for practitioners and management especially in the post crisis era.

This paper is an application of Jenkins' model in Saudi corporate. SAPTCO, and Budget Saudi companies are selected from transportation sector to apply Jenkins' model on their reports. The application focuses on the ten elements of Jenkins model in details. The investigated sample suggests that even though Saudi corporate reporting provides lots of information in the board of director report, it still lacks to some elements of Jenkins model which is not required by the Saudi corporate regulations. Standard setters are encouraged to develop a comprehensive model of business reporting by benefit from developed countries' experiences; involving users in the standard-setting process. Companies should study users need to recognize and evaluate ways to improve business reporting. Intensive researches in Saudi corporate reporting are key to keeping pace with evolving needs for information. As a consequence of Saudi 2030 vision, Saudi corporate reporting is heading toward business reporting. [ABSTRACT FROM AUTHOR]

This study aims to systematically review extant literature on corporate narrative disclosure practices in the Middle East and North Africa (MENA) region. This study employs a systematic literature review (SLR) to address three main issues: (1) develop insights into how the literature on corporate narrative disclosure is developing in the MENA context; (2) provide a critique of the literature; and (3) suggest avenues for future research. Based on selecting and analysing 60 articles relevant to narrative disclosure literature in MENA region, the results documented the (1) developing of narrative disclosure practices in MENA region since 2015, (2) focus of studies in all regions with more emphasis on Asia, (3) most researched topics, and (4) key determinants and consequences of narrative disclosure are identified. Also, the current review highlights the lack of evidence for (1) some topics, (2) using automated scoring method, and (3) validity/reliability tests. The current review is subject to the limitation of being subjective and based on author's judgements and interpretation of the findings. Therefore, other researchers may interpret the findings differently. The implications of the findings for both theory and practice are discussed. Corporate narrative disclosure is a research area that has been receiving increasing attention of international business and yet it is mostly dominated by western contexts. However, the corporate narrative disclosure can have wide implications, and therefore, it is fruitful to investigate narrative reporting in different socio-cultural contexts such as MENA region. Also, employing a SLR methodology results in more reliable findings compared to the traditional literature review. [ABSTRACT FROM AUTHOR]

This paper explores the implementation of the circular economy in the energy sector. The research findings contribute to our understanding of the practical application of the circular economy, enabling policymakers and stakeholders to make informed decisions and develop targeted strategies. The study analyzes 88 Portuguese companies' reports, examining the presence of circular economy strategies and initiatives. The results reveal that energy sector companies tend to prioritize reporting their greenhouse gas reduction efforts over their circular economy strategies. The findings align with previous studies in the oil and gas industry, emphasizing the significance of sustainability reporting and potential biases in reporting practices. The study also identifies a gap between circular economy terminology and its representation in reports, indicating the need for greater incorporation of circular economy-oriented initiatives in the energy sector. The research highlights the role of technology in fostering innovation and calls for strategic alliances and knowledge sharing to drive circular economy practices. Further research is recommended to understand the barriers to implementing circular economy practices and identify effective solutions. Overall, this paper provides valuable insights for advancing the circular economy in the energy sector and achieving broader sustainability goals. [ABSTRACT FROM AUTHOR]

The purpose of the study is to reveal the features and role of corporate reporting in business management. Ideas for its improvement are connected with the developing economic reality and are aimed at meeting the needs of an ever wider audience of interested parties (stakeholders). The article deals with topical issues related to the existing structure of corporate reporting aimed at disseminating the necessary amount of data among stakeholders, as well as the features of integrated reporting, which seeks to combine various components of corporate information. The methodological basis of the study was a system-functional and economic-statistical analysis, comparison. Based on the results of the work, it was concluded that corporate reporting is an important means by which companies communicate with stakeholders in management activities, incl. In fulfillment of their obligations. The results of the study can be used in the collection of data for the preparation and formation of corporate reporting of organizations.

The economic crisis has promoted the importance of control mechanisms, as a way to reduce the gap between the interests of owners and managers. In this regard, corporate governance appears to be probably the most comprehensive control mechanism used to ensure the effective use of corporate resources. In modern business conditions characterized by globalization, a dynamic environment, numerous corporate and financial scandals, the attention of many companies is concentrated in the field of corporate governance with special emphasis on financial reporting and enterprise risk management. In relation to various corporate governance mechanisms, corporate reporting is one of the most commonly used internal mechanisms. Although this mechanism includes the publication of important and relevant information on the operations of joint-stock companies of various natures, its fundamental part consists of information of a financial nature. Companies that rely on enterprise risk management as an integral function have the opportunity to better understand the degree of risk in various areas of business. Finally, such an approach should provide them with a more objective perspective for investment decisions, and consequently, improve the effectiveness of capital investments. Risk management should not be viewed as one of the techniques of operational management, but as an important component in the management of the company, related to the constant development of management systems, which has significant organizational consequences. Consequently, it follows that enterprise risk management in the company coincides and permeates with corporate governance.