Review of ASX 300 Corporate Governance Recommendation 4.3 Disclosures: Effectiveness of communication and efficacy of integrity enhancement processes
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posted on 2024-12-05, 04:00 authored by Eka TanEka Tan, Peter Carey, Roger Simnett, Michael BrayReview of ASX 300 Corporate Governance Recommendation 4.3 Disclosures: Effectiveness of communication and efficacy of integrity enhancement processes
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978-0-7300-0451-6Research statement
Background This report analyzes how Australia's largest listed entities responded to ASX Recommendation 4.3, introduced in 2019 to enhance integrity in unaudited periodic corporate reports like sustainability and financial reports. Prompted by corporate scandals and trust concerns, it requires entities to disclose or explain processes ensuring report reliability. Using Appendix 4G data, the study evaluates the effectiveness of communication about these processes and the efficacy of integrity enhancement mechanisms, offering insights into early compliance and corporate governance trends. Contribution This research analyzes ASX 300 companies' adoption of Recommendation 4.3, which aims to improve corporate reporting integrity. Findings reveal inconsistencies in disclosures, with notable best practices identified. The report provides insights for stakeholders, including recommendations for the ASX Corporate Governance Council to revise the recommendation for more detailed and consistent disclosures, ASX monitoring of compliance, government collaboration on best practices, and accounting bodies offering member guidance. This comprehensive review seeks to enhance Australia's corporate reporting standards. Significance Research on ASX Recommendation 4.3 is significant for advancing corporate reporting integrity, governance, and investor confidence. It emphasizes robust verification processes for unaudited reports, improving transparency and trust. The study identifies adoption gaps, guiding regulators, accounting bodies, and report preparers to refine practices. It supports integrated reporting principles and aligns Australian companies with global standards, such as the ISSB. This timely research contributes to enhancing corporate governance, promoting accountability, and fostering informed decision-making in Australia's evolving market landscape.Publisher
Deakin UniversityUsage metrics
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