Exploring Potentials of Self Governance Through Financial Reporting Standards : Addressing Imbalances and Limits of Self Regulation

As well as highlighting the impact of asymmetric information on levels of monitoring procedures and how conflicts of interests which could arise between corporations and their shareholders, or between governments and those firms being regulated by the regulator, could be addressed, this research is also aimed at accentuating the need for the operation of certain vital safeguards, given the merits that are, and could be derived from self governance and self regulation.Several safeguards which are aimed at bolstering the objective of ensuring that the agent’s objectives and actions are closely monitored, as well as aligned with firm investors’ desires, encompass and relate to the encouragement of longer term firm economic performance, increasing shareholder voting power, and the implementation of legislative tools and financial reporting standards as means of determining how effectively executives and management are to be compensated.This research is therefore also aimed at exploring how these safeguards could be applied, particularly within the context of insider trading and the rationale behind several jurisdictions to adopt or not to adopt insider trading regulations. Furthermore, it will seek to provide a better understanding of how corporate governance structures can assist businesses.Self governance and self regulation are terms which will be used interchangeably throughout this research