Firm managers make ethical decisions regarding the form and quality of disclosure. Disclosure can have long-term implications for performance, earnings manipulation, and even fraud. We investigate the impact of venture capital (VC) backing on the quality and informativeness of disclosure controls and procedures for newly public companies. We find that these controls and procedures are stronger, as evidenced by fewer material weaknesses in internal control under Section 302 of the Sarbanes–Oxley Act, when companies are VC-backed. Moreover, these disclosures are informative (...) and are more likely to be followed by subsequent financial statement restatements than are disclosures made by non-VC-backed IPO companies. (shrink)

Within the current global atmosphere where a universally accepted police force is nonexistent, there are several voluntary norms and codes of conduct that exist to guide how corporations behave worldwide. These have come as a result of many years of poor performance in the areas of social, financial, and environmental responsibility. Such norms are expected to prescribe and proscribe certain types of corporate behavior but when one examines the reality on the ground, the story is not that straightforward. This article (...) assesses the effectiveness of the Extractive Industries Transparency Initiative (EITI) in the Ghanaian context with a focus on the mining sector. Based on primary qualitative data the argument is that even though the EITI is performing some function, it has ways to go before it can become an across‐the‐board viable tool for transparency and proper accountability. Five prevailing weaknesses are discussed to underscore this case. (shrink)