Current literature is somewhat unclear on how corporate violations under the new set of governance environments versed in the Internal Controls Integrated Framework issued by COSO (acronym of Committee of Sponsoring Organizations of the Treadway Commission) influence shareholders’ activism. Initially published in 1992, these guidelines faced a significant revision with proactive improvements in 2013. Since the first emission, this guidance has focused on providing safe-keeping basic standards for organizations to follow regarding the integrity of corporate governance and enterprise risk management by designing and implementing stable internal controls. The handbooks’ primary approach builds upon an environment of permanent improvement of self-regulatory governance in three main catalysts or pillars: (i) operational safety; (ii) financial statements reporting assurance; and (iii) regulatory compliance.
Jimenez-Andrade, J. R. (2022). Capital Market Penalties and Corporate Violations of the Three Pillars (Operations, Reporting, and Compliance) after COSO 2013 Internal Controls: Integrated Framework. Retrieved from https://digitalcommons.tamusa.edu/acct_faculty/4