CALL FOR PAPERS: Why do companies fail?

Deadline: 11 August 2023

The Institute of Chartered Accountants in England and Wales (ICAEW) is inviting scholars to submit proposals for a literature review on the causes of corporate failure, with a specific focus on the role of internal control and corporate governance.

This review aims to explore the internal mechanisms (eg, board, audit committee) and external mechanisms (regulator, market, social actors) that play a role in preventing failures. The Corporate Governance Committee of ICAEW has identified internal control failings as a significant contributor to corporate failures, particularly surprise failures, where risks leading to failure are not appropriately portrayed in financial statements. We are interested in investigating dynamic approaches like out-of-the-box thinking and reverse stress testing to anticipate failure in changing markets.

Successful submissions will have the potential to enhance businesses' internal control mechanisms, contribute to the development of policies and legislation/regulatory instruments, and improve corporate governance practices. They will therefore make recommendations for where further empirical research can contribute to these dual objectives.

Further information