Board financial expertise and the capital decisions of US banks

PurposeThe purpose of this paper is to investigate the direct and indirect effect of the existence of risk management on the relationship between audit committee and corporate social responsibility (CSR) disclosure in Palestine.Design/methodology/approachThe study utilizes a panel data of 31 Palestinian listed companies from 2010 to 2016. It also utilizes structural equation modeling (SEM) model.FindingsThe results of SEM model find a significant positive relationship of the existence of risk management, audit committee meeting and audit committee size with CSR disclosure. However, audit committee financial expertise has a significant negative relationship with CSR disclosure. The results also find a significant relationship of audit committee meeting and audit committee financial expertise with CSR disclosure through the existence of risk management.Practical implicationsThis study is important to policymakers, accounting professionals and shareholders on the extent to which audit committee related to such committee efficiency in monitoring CSR disclosure.Social implicationsThis study adds to the existing literature by investigating the direct and indirect effect of the existence of risk management on the relationship between audit committee and CSR disclosure in Palestine as one of the youngest market in region that assists to test the validity of agency theory in a young and small emerging market context.Originality/valueIt is the first study to investigate the direct and indirect effect of the existence of risk management on the relationship between audit committee and CSR disclosure in Palestine.

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Paying for financial expertise: privatization policies and shifting state responsibilities in the school facilities industry

Journal of Education Policy ◽

10.1080/02680939.2018.1442027 ◽

2018 ◽

Vol 33 (5) ◽

pp. 704-737 ◽

Cited By ~ 2

Author(s):

Marialena D. Rivera

Keyword(s):

School Facilities ◽

Financial Expertise

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Composition of supervisory committees in Trinidad and Tobago credit unions

Corporate Ownership and Control ◽

10.22495/cocv6i2c1p4 ◽

2008 ◽

Vol 6 (2) ◽

pp. 202-211

Author(s):

Anthony R. Bowrin ◽

John Ramnanan

Keyword(s):

Trinidad And Tobago ◽

Financial Literacy ◽

Credit Unions ◽

Structured Interviews ◽

Community Based ◽

Financial Expertise

This paper provides an assessment of the competence and independence of members of the supervisory committee (SC) of Trinidad and Tobago (T&T) Credit Unions (CUs), and examines factors that are associated with SC chairpersons’ competence and independence. Most of the information used in the paper was collected by conducting structured interviews with the immediate-past chairperson of the supervisory committees of 58 T&T CUs. The results of the analysis indicate that the overall level of financial literacy, financial expertise and independence among SC chairpersons was relatively low. The SC chairpersons of community-based CUs tended to be significantly more financially literate than their counterparts in organizationally-based CUs. Also, the results suggest that the independence of SC chairpersons varied negatively with CU Size.

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An Investigation on the Audit Committees Effectiveness: The Case for GLCs in Malaysia

Gadjah Mada International Journal of Business ◽

10.22146/gamaijb.5484 ◽

2011 ◽

Vol 13 (3) ◽

pp. 287 ◽

Cited By ~ 5

Author(s):

Nurul Nazlia Jamil ◽

Sherliza Puat Nelson

Keyword(s):

Earnings Management ◽

Financial Reporting ◽

Audit Committee ◽

Reporting Quality ◽

Audit Committees ◽

Financial Reporting Quality ◽

Financial Expertise ◽

Monitoring Mechanism ◽

The Impact

Financial reporting quality has been under scrutiny especially after the collapse of major companies. The main objective of this study is to investigate the audit committee’s effectiveness on the financial reporting quality among the Malaysian GLCs following the transformation program. In particular, the study examined the impact of audit committee characteristics (independence, size, frequency of meeting and financial expertise) on earnings management in periods prior to and following the transformation program (2003-2009). As of 31 December 2010, there were 33 public-listed companies categorized as Government-Linked Companies (GLC Transformation Policy, 2010) and there were 20 firms that have complete data that resulted in the total number of firm-year observations to 120 for six years (years 2003-2009). Results show that the magnitude of earnings management as proxy of financial reporting quality is influenced by the audit committee independence. Agency theory was applied to explain audit committee, as a monitoring mechanism as well as reducing agency costs via gaining competitive advantage in knowledge, skills, and expertise towards financial reporting quality. The study is important as it provides additional knowledge about the impact of audit committees effectiveness on reducing the earnings management, and assist practitioners, policymakers and regulators such as Malaysian Institute of Accountants, Securities Commission and government to determine ways to enhance audit committees effectiveness and improve the financial reporting of GLCs, as well as improving the quality of the accounting profession.

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Pengaruh Sales Growth dan Keahlian Keuangan Komite Audit terhadap FinancialDistress.(Studi Empiris Pada Perusahaan Manufaktur Sub Sektor Otomotif dan Komponen yang Terdaftar di Bursa Efek IndonesiaPeriode 2012-2016)

Kajian Akuntansi ◽

10.29313/ka.v21i2.4580 ◽

2019 ◽

Vol 21 (2) ◽

Author(s):

Nurhayati Nurhayati

Keyword(s):

Financial Distress ◽

Research Method ◽

Audit Committee ◽

Stock Exchange ◽

Balance Sheet ◽

Linear Regression Method ◽

Sales Growth ◽

Manufacturing Companies ◽

Financial Expertise ◽

Negative Effect

Abstract. This study aims to determine the effect of sales growth and financial expertise of audit committee to financial distress. The research method used is descriptive research method with quantitative approach. Analyzer used in this research is multiple regression analysis by using sample of research as many as 9 manufacturing companies of the automotive and component sub-sector listed on The Indonesia Stock Exchange in 2012-2016. Hypothesis testing is done by multiple linear regression method using SPSS version 17. The result showed that the sales growth variable has no significant negative effect to financial distress, and financial expertise of audit committee has negative and significant effect to financial distress. The result of this study can be recommendation for investor to be able to analyse the company’s financial statements related to the decision to invest. Recommendation for the next researchers to be able to research all of manufacturing companies listed on Indonesia Stock Exchange and used other indicator of financial ratios contained in balance sheet, income statements, and cash flow statements.Keywords: Financial Distress, Audit Committee Financial Expertise, Sales Growth.

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THE EFFECT OF FINANCIAL EXPERTISE ON COMPENSATION AND BOARD OF DIRECTORS TURNOVER

JOURNAL OF APPLIED MANAGERIAL ACCOUNTING ◽

10.30871/jama.v2i1.718 ◽

2018 ◽

Vol 2 (1) ◽

pp. 51-64

Author(s):

Danar Irianto ◽

Nuranisa Anugerah

Keyword(s):

Board Of Directors ◽

Least Square ◽

Graduate Degree ◽

Board Size ◽

Post Graduate ◽

Ordinary Least Square ◽

Least Square Regression ◽

Financial Expertise ◽

Ordinary Least Square Regression ◽

Financial Company

This research aims to explains association between financial expertise of directors to directors compensation and directors turnover of Indonesia non financial company in 2011-2012. Using ordinary least square regression we used four variables to define financial expertise of directors: age of the directors, tenure of the directors, the post-graduate degree (MBA), and the accounting certification (CPA). However, this study found no association financial expertise to compensation and directors turnover. We hope this study can contributes to financial expertise, compensation, and turnover literature. We also provide implications for companies in determining the compensation of directors based on financial expertise. Further research can be improve by add new variabel such as complexcity and board size.

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Pengaruh Karakteristik Komite Audit, Perusahaan dan Struktur Kepemilikan Terhadap Kecurangan Pelaporan Keuangan

SAR (Soedirman Accounting Review) Journal of Accounting and Business ◽

10.20884/1.sar.2016.1.2.304 ◽

2016 ◽

Vol 1 (2) ◽

pp. 50

Author(s):

Andrian Budi Prasetyo

Keyword(s):

Financial Reporting ◽

Ownership Structure ◽

Audit Committee ◽

Quantitative Methods ◽

Stock Exchange ◽

Secondary Data ◽

Annual Reports ◽

Fraudulent Financial Reporting ◽

Financial Expertise ◽

Firm Characteristic

This study examines the effect of audit committee characteristics, firm characteristic and ownership structure on the likelihood of fraudulent financial reporting. Audit committee characteristics is examined by audit committee financial expertise, meetings of the audit committee and the audit committee tenure. Firm characteristic is examined by the leverage, firm size, firm’s growth rate and external auditor. Ownership structure is examined by managerial ownership and institutional ownership. This research is using a quantitative methods research. This research is using secondary data that comes from the cases list of Otoritas Jasa Keuangan (OJK) and annual reports of the listed companies on the Indonesia Stock Exchange (IDX). Using a sample of 15 fraud and 15 non-fraud firms, we did not find a significant relation between the independent variabels and fraudulent financial reporting.

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