The Role of Independent Directors and Audit Committee in Corporate Governance--- A Case Study of Enron Corporation

Abstract

This work examines the effectiveness of audit Board and Independent Directors, focusing on their responsibilities in reporting. In particular, it uses a comprehensive institutional perspective to incorporate the dynamics of institutional formers and organizations and identify issues arising from the introduction of internationally accepted governance mechanisms. The findings show that institutional environment does not yet fully support the concept of imports. The implementation of audit committees and independent directors seems to be largely symbolic, as these concepts are rarely as a tool to improve the quality of reporting. They also showed how conflicting institutional pressures form a loose bond between regulation and actual operation, intertwined with conflicts of interest and power dependence of organizational participants in institutional environment.