Considerations on the financial crisis, management and external disclosure

The financial crisis erupted in 2008 has lead to a real recession affected by several economic drivers. The global financial crisis, brewing for a while, really started to show its effects in the middle of 2007 and into 2008. Around the world stock markets have fallen, large financial institutions have collapsed or been bought out, and governments in even the wealthiest nations have had to come up with rescue packages to bail out their financial systems. On the one hand many people are concerned that those responsible for the financial problems are the ones being bailed out, while on the other hand, a global financial meltdown will affect the livelihoods of almost everyone in an increasingly inter-connected world. The problem could have been avoided, if ideologues supporting the current economics models weren’t so vocal, influential and inconsiderate of others’ viewpoints and concerns. This work aims to identify the main economic business forces that have contributed to the bankruptcy of some firms or at least contributed to significant functional difficulties. In this sense, we explore the questionable actions of management as well as the lacking financial disclosure affected by the incomplete harmonization of accounting standards.