A Review on the Influence of Corporate Governance Mechanism on Earnings Quality of Banks

2021 ◽  
pp. 1550-1562
Author(s):  
Siti Fariha Muhamad ◽  
Farah Hanan Muhamad ◽  
Azira Hanani Ab Rahman ◽  
Mohd Zulkifli Muhammad ◽  
Nur Syafiqah A. Samad ◽  
...  
Keyword(s):  
Corporate Governance ◽  
Earnings Quality ◽  
Governance Mechanism ◽  
Corporate Governance Mechanism

scholarly journals Non-Executive Chairman, Audit Quality and Earnings Management

2020 ◽  
Vol 15 (3) ◽  
pp. 50
Author(s):  
Aditi Shams
Keyword(s):  
Earnings Management ◽  
Executive Director ◽  
Audit Quality ◽  
Earnings Quality ◽  
Governance Mechanism ◽  
Jones Model ◽  
Corporate Governance Mechanism ◽  
Total Accrual

The purpose of this paper is twofold, first, it examines the association of non-executive chairman and the quality of financial earnings and second, it examines the role of audit quality and non-executive chairman in earnings quality. This paper uses the modified jones model and the performance adjusted modified Jones model considering two cash flow methods of total accrual and perform regression analysis on the energy sector firms from the year 2010-2012. The study result does not find any significant association of earnings management and non-executive director and audit quality in the Australian context. This finding raises concerns regarding the effectiveness of such a corporate governance mechanism to maximize monitoring over the operation of the firm.

scholarly journals Transparency and disclosure as an internal corporate governance mechanism and corporate performance: Egypt’s case

2017 ◽  
Vol 14 (4) ◽  
pp. 182-195 ◽  
Author(s):  
Dina Hassouna ◽  
Hassan Ouda ◽  
Khaled Hussainey
Keyword(s):  
Corporate Governance ◽  
Corporate Performance ◽  
Objective Measure ◽  
Value Added ◽  
Governance Mechanism ◽  
Corporate Governance Mechanism ◽  
Transparency And Disclosure ◽  
The Impact ◽  
Disclosure Practice

Our paper aims to examine the impact of an “objective” measure for the quality of transparency and disclosure practice that is extracted from the Egyptian corporate governance guidelines on the performance of a selected sample of 85 Egyptian listed companies. We use mixed methods (i.e. content analysis, regression analysis, questionnaires and interviews) to test the relationship between the transparency and disclosure index and corporate performance for the period 2006-2010. We found no significant relationship between transparency and disclosure practice and corporate performance. Our results suggest that governance mechanisms such as transparency and disclosure practices are considered to be just ink on paper without any actual value added adopting corporate governance in Egypt.

scholarly journals Good corporate governance mechanism in measuring quality of financial statements and transfer investor levels

2019 ◽  
Author(s):  
Syafrida Hani
Keyword(s):  
Corporate Governance ◽  
Financial Statements ◽  
Accounting Conservatism ◽  
Financial Statement ◽  
Governance Mechanism ◽  
Investor Confidence ◽  
Simultaneous Test ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanism

This study aims to develop a theory of determining the quality of financial statement reports that can increase investor confidence in financial information presented by management. This research would like to find the role of good corporate governance in improving the quality of financial statements as measured by accounting conservatism and earnings management, then it will be seen how the quality ability of financial statement can influence investor confidence level. The result of the research did not find the influence of corporate governance mechanism on the quality of financial statements. However, the simultaneous test results found that corporate governance mechanisms and the quality of financial statements affect the level of investor confidence. Profit management as an indicator of the quality of financial statements negatively affects the level of investor confidence. But accounting conservatism declared no effect on the level of investor confidence. The results of the test with path analysis found that the variables that have a direct influence of the mechanism of good corporate governance is the ownership of the institution, while other variables have no influence either directly or indirectly.

scholarly journals Pengaruh Corporate Governance terhadap Nilai Perusahaan pada Perusahaan Perbankan yang Terdaftar di BEI Tahun 2011-2014

Telaah Bisnis ◽  
2017 ◽  
Vol 17 (2) ◽  
Author(s):  
Andy Meindarto ◽  
Fitri Lukiastuti
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Audit Committee ◽  
Earnings Quality ◽  
Linear Regression Analysis ◽  
Institutional Ownership ◽  
Multiple Linear Regression Analysis ◽  
Managerial Ownership ◽  
Governance Mechanism

Abstract This study aims to determine the effect of corporate governance on corporate value with the quality of earnings as an intervening variable. Corporate governance mechanism uses four variables managerial: ownership, institutional ownership, the proportion of independent directors and audit committee. The sample consist of 28 banking companies in 2011-2014. The research used Multiple Linear Regression Analysis to test the influence of in­dependent variables on dependent variable. Varible of earnings quality that measured by DA (Discretionary Accrual) has effect on firm value. Institutional ownership of independent board and audit committee have effect on earning quality. Other variables such managerial owner­ship and institutional ownership have no effect on earnings quality. Institutional ownership and independent board have effect on firm value, meanwhile managerial ownership and the audit committee have no effect on firm value. The value of adjusted R2 for the effect of corporate gov­ernance mechanisms on the quality of earnings was 0.170 or 17%. While the value of adjusted R2 for the effect of corporate governance mechanisms on firm value with the quality of earnings as an intervening variable was 0.311 or 31.1%.

scholarly journals Corporate Governance Disclosure and Earnings Quality: Study on Companies Listed on The ASEAN Star Financial Times Stock Exchange (FTSE)

2021 ◽  
Vol 16 (2) ◽  
pp. 207-232
Author(s):  
Robick Faliana ◽  
◽  
Wiwik Utami ◽  
Keyword(s):  
Corporate Governance ◽  
Stock Market ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Governance Mechanism ◽  
Price Changes ◽  
Earnings Response Coefficient ◽  
Response Coefficient ◽  
Earnings Response

The governance mechanism is different for each company. Therefore, companies need an indicator to measure the quality of governance and one of them is the ASEAN Scorecard. This indicator is used as a standard for measuring the quality of corporate governance in the ASEAN region. The corporate governance mechanism can be a factor in price changes in the stock market. Investors will react to any issues related to it. Price changes that occur on the stock market are a measure of the size of investors in investing because they can affect expected earnings. Although there is quite a lot of research related to it, research on earnings quality that discusses market response to price changes that occur due to the influence of governance mechanisms is limited. This study aimed to examine the effect of corporate governance on earnings quality using companies listed on the Financial Time Stock Exchange ASEAN Star (FTSE ASEAN Star). The study was conducted by examining financial ratios of companies using a cross-sectional data regression model with the Earnings Response Coefficient (ERC) as a proxy. The results showed that corporate governance affected ERC, especially on the disclosure of corporate governance and shareholder rights. Keywords: ASEAN scorecard, corporate governance, earnings response coefficient, disclosure, fraud

scholarly journals Quality of Financial Reporting towards the Improvement Corporate Governance Mechanism

2018 ◽  
Vol 8 (11) ◽  
Author(s):  
Norfadzilah Rashid ◽  
Wan Norhayate Wan Daud ◽  
Fakhrul Anwar Zainol ◽  
Fauzilah Salleh ◽  
Ahmad Shukri Yazid ◽  
...  
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Governance Mechanism ◽  
Corporate Governance Mechanism

scholarly journals The Influence of Corporate Governance Mechanism, Accounting Conservatism, And Company Size on Earnings Quality

2021 ◽  
Vol 04 (01) ◽  
Author(s):  
Wiwik Pratiwi ◽  
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Institutional Ownership ◽  
Accounting Conservatism ◽  
Managerial Ownership ◽  
Company Size ◽  
Governance Mechanism ◽  
Corporate Governance Mechanism

This research aims to provide empirical evidence on the influence of corporate governance mechanism (audit committee, independence board of commissioner, institutional ownership, managerial ownership), accounting conservatism, and company size on earnings quality. Sample used in this research are manufacturing company listed in Indonesia Stock Exchange (IDX) in 2016-2018 using purposive sampling and obtained 29 companies. This research used secondary data of annual report or financial statement obtained from Indonesia Stock Exchange (IDX) or company website in 2016-2018 period. Data were analyzed using multiple regression method. The finding of this research are institutional ownership and managerial ownership partially has positive significant effect to earnings quality. The accounting conservatism and company size partially has negative significant effect to earnings quality. Whether the audit committee and independence board of commissioner has no significant effect to earnings quality. In addition, corporate governance mechanism, accounting conservatism and company size simultaneously has a significant effect to earnings quality.

Corporate Governance Mechanism, Audit Quality and Accrual Quality (Indonesia Manufacturing Company Evidance)

2012 ◽  
Vol 3 (1) ◽  
Author(s):  
Aloysius Harry Mukti ◽  
Ratna Wardhani
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Audit Quality ◽  
Governance Mechanism ◽  
Manufacturing Companies ◽  
Accrual Quality ◽  
Big 4 ◽  
Audit Fee ◽  
Corporate Governance Mechanism

Abstract – This study examines the influence of implementation of corporate governance mechanism and audit quality toward accrual quality of the corporation. The implementation of corporate governance mechanism uses three measures: the effectiveness of the audit committee, board effectiveness and family ownership structure. For audit quality the measurements uses two approaches: amount of audit fee and grouping the company into two groups (audited by the auditor big-4 and audited by auditor non big-4). The study was conducted among selected manufacturing companies in Indonesia, during the period 2007-2009. Based on the results of the study, we find that only the board of Commissioners and grouping the company into two group (audited by the auditor big-4 and audited by auditor non big-4 experience) as a proxy of audit quality significantly improved quality of accrual. Keywords - Corporate governance mechanism, audit quality, accrual quality

Board Effectiveness: An Evaluation based on Corporate Governance Score

Think India ◽  
2015 ◽  
Vol 18 (1) ◽  
pp. 16-23
Author(s):  
Hitesh Shukla ◽  
Nailesh Limbasiya
Keyword(s):  
Corporate Governance ◽  
Good Governance ◽  
Sustainable Growth ◽  
Governance Mechanism ◽  
Minority Shareholders ◽  
Effective Governance ◽  
Performance Orientation ◽  
Corporate Governance Mechanism ◽  
And Performance ◽  
Ethical Governance

Growth, progress, and prosperity of any country depend highly on the corporate governance mechanism of that country. Good governance of a country helps it to sustainable growth and consistency in progress. The good governance should contribute towards the improvement in transparency, ethics, morality, and disclosure. The principles of good governance stand on honesty, trust, integrity, openness, and performance orientation. Our honorable Prime Minister Narendra bhai Modi had given the three E for good governance during his speech on Independence Day i.e. Effective Governance, Electronic Governance, and Ethical Governance. The fundamental concern of corporate governance mechanism is to ensure the protection of minority shareholders/owners of specific firms. Mechanism of a corporate governance specifies the relations among the shareholders, board of directors, and managers. The present paper is an attempt to evaluate the effectiveness of the board by calculating the corporate governance score. The mandatory and non-mandatory guidelines have been considered while assigning points to specific parameters of the corporate governance.

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