Digital Corporate Governance: Inevitable Transformation
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2021
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Abstract
The process of digitization, which represents one of the sharpest turns in the long-running transformation journey of enterprises throughout history, represents a transformation that affects not only internal operational environment of a business but also all stakeholders, including the shareholders, management and suppliers by utilizing communication technologies and other emerging technologies. During this transformation, the short-term focus for enterprises was replaced by the long-term, and the profit focus in its objectives was replaced by sustainable added value. Thanks to the impact on accounting function which is one of the most crucial supporting tools of corporate governance pillars, digitalization, provides a more developed responsibility and accountability framework by ensuring transparent, timely, and accurate information needed and requested by stakeholders. By courtesy of the developing technologies in this process, the amount of data included in the business decision processes has increased and therefore the possibility of richer content opportunity has emerged in terms of both financial and non-financial reporting. Big data analysis, artificial intelligence, and blockchain technologies enable the transformation of the accounting function and therefore of corporate governance practices, along with other business functions. In this chapter, the impact of digitalization on corporate governance practices is discussed from the perspective of developing technologies and institutionalization, revealing potential effects, transformations, and steps to take. © 2021, The Author(s), under exclusive license to Springer Nature Switzerland AG.