Globalization, Technology, and Corporate Governance

Abstract

This chapter discusses the impact of globalization and technology on corporate governance. Technology plays an important role in corporate governance, particularly in improving and automating the compliance process in the post-corporate governance reforms era. According to the point of view of this chapter, globalization and technological advances have made the world flat by enabling corporations, organizations, and individuals worldwide to conduct their business electronically using the Internet. The ever-increasing use of e-commerce encourages companies to utilize electronic financial reporting, such as XBRL format, to produce and disseminate financial reports and independent auditors to employ continuous auditing methodologies to conduct audits. Thus, IT is expected to influence all seven functions of corporate governance.