The effect of audit committee characteristics on forward-looking disclosure

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohamad Rifai ◽  
Sylvia Veronica Siregar
Keyword(s):  
Audit Committee ◽  
Stock Exchange ◽  
Least Square ◽  
Content Type ◽  
Ordinary Least Square ◽  
Financial Firms ◽  
Financial Expertise ◽  
Ordinary Least Square Regression ◽  
Accounting Expertise ◽  
Forward Looking

Purpose This study aims to examine the effect of the audit committee characteristics on forward-looking disclosure. Design/methodology/approach The characteristics of audit committee that examined are audit committee expertise, audit committee meeting frequency and audit committee size. To measure the extent of forward-looking disclosure, this study did content analysis using a checklist of 22 forward-looking items. The samples of this research are 285 non-financial firms listed on the Indonesia Stock Exchange in the year 2015. Ordinary least square regression is used for hypotheses testing. Findings The results of this study show that the audit committee accounting expertise, audit committee financial expertise, the frequency of audit committee meetings and the size of the audit committee have a significant positive effect on the forward-looking disclosure. Originality/value To the best of the authors’ knowledge, this is the first study examining the audit committee characteristics on forward-looking disclosure in the context of Indonesia, one of the emerging markets.

The disclosure of financial forward-looking information

2019 ◽  
Vol 34 (2) ◽  
pp. 140-156 ◽  
Author(s):  
Francisco Bravo ◽  
Maria Dolores Alcaide-Ruiz
Keyword(s):  
Voluntary Disclosure ◽  
Audit Committee ◽  
Annual Reports ◽  
Personal Attributes ◽  
Content Type ◽  
Female Directors ◽  
Financial Expertise ◽  
S 100 ◽  
Accounting Expertise ◽  
Forward Looking

PurposeThe purpose of this paper is to examine the association between the financial expertise (accounting and non-accounting) of female directors in the audit committee and the voluntary disclosure of financial forward-looking information.Design/methodology/approachThe sample is composed of companies belonging to the Standard and Poor`s 100 Index in 2016. Content analysis techniques are used to analyze both information disclosed in annual reports and the financial expertise of female directors.FindingsThe results fail to find an association between the presence of women in the audit committee and the disclosure of financial forward-looking information. However, the disclosure of this information is associated with the presence of female audit committee members with financial expertise, especially accounting expertise.Research implicationsThe academic implications are related with the need for a consideration of the personal attributes of female directors to understand their role in the boardroom or on subcommittees.Practical implicationsGiven the importance of financial forward-looking information in the capital markets, these findings will also help policymakers and managers to implement effective corporate governance structures and will have significant implications for the selection of female audit committee members.Originality/valueThis paper is the first to examine whether the specific expertise of female directors, beyond mere gender, makes a difference in financial forward-looking disclosure strategies.

Effect of Enterprise Risk Management on Firm Value: Empirical Evidence from Non-Financial Firms in Pakistan

GIS Business ◽  
1970 ◽  
Vol 13 (2) ◽  
pp. 15-28
Author(s):  
Nouman Nasir
Keyword(s):  
Risk Management ◽  
Firm Value ◽  
Positive Impact ◽  
Stock Exchange ◽  
Enterprise Risk Management ◽  
Least Square ◽  
Return On Equity ◽  
Financial Firms ◽  
Enterprise Risk ◽  
Ordinary Least Square Regression

This research examines the effect of enterprise risk management on firm value in Pakistan. Further, this study empirically examines company characteristics that establish the execution of an enterprise risk management system. Using a sample of final dataset of 83 non-financial firms located in Pakistan. The sample included non-financial firms from the year 1999 to 2015 and so up to seventeen observation years per company. As in context of Pakistan, most of the organizations are already implement an ERM programs and establish specialized ERM departments because the ERM is now a global term and has become increasingly relevant because of the growing difficulty of risk and an additional development of regulatory frame works. For the empirical evidences, data collected from non-financial firms listed at the Pakistan Stock Exchange (PSX). Results of logistic regression shows that Capital Opacity, Profitability, Financial Leverage, Firm Size and Slack have positive impact on the implementation of an ERM system but Industrial diversification, Industry and Return on Equity are negatively related to an ERM engagement. The results of ordinary least square regression finds positive relationship between use of an ERM and firm value.

Tacit knowledge transfer in coopetition

2017 ◽  
Vol 10 (4) ◽  
pp. 453-468 ◽  
Author(s):  
Amit Kumar ◽  
Swarup Kumar Dutta
Keyword(s):  
Knowledge Transfer ◽  
Tacit Knowledge ◽  
Least Square ◽  
Service Firms ◽  
Content Type ◽  
Ordinary Least Square ◽  
Tacit Knowledge Transfer ◽  
Potential Benefits ◽  
Ordinary Least Square Regression ◽  
Empirical Context

Purpose The purpose of this paper is to understand how firms affiliated to business groups (BGs) are able to improve their innovation capability (IC) when engaged in coopetition (collaboration between competing firms). This study aims to explore the relationship between coopetitive relationship strength (CRS), the extent of tacit knowledge transfer (TKT) and IC as well as examine the moderating effect of both BG affiliation and coopetitive experience. Design/methodology/approach The paper examines inter-firm relationships within the empirical context of Indian manufacturing and service firms, by adopting (ordinary least square) regression analysis to test the various hypotheses. The central thesis is that the TKT in coopetition constitutes an important driver to the IC. Findings The paper provides some evidence that inter-firm CRS influences the extent of TKT, and the extent of TKT affects firm IC. The results support that firms in coopetition gain more if their coopetitive partner has a BG affiliation. In absence of a BG affiliation of any of the coopetitive partners, the buildup of TKT reduces as CRS is increased. Research limitations/implications Additional large-sample of data may attempt to validate relationships. The study, however, did not consider all enablers that are critical for TKT. Despite these limitations, analysis provides important and novel perspectives. Practical implications The paper contributes to develop executives’ practices in understanding potential benefits of coopetitive relationship. The implications of this research are important for managers seeking understanding of the management of coopetition. Originality/value The paper makes a modest attempt to investigate the various scenarios of the presence or absence of the moderation of BGs and its impact on CRS in the buildup of TKT. This is the first attempt to link coopetition to the TKT in the BG literature. This study also contributes to our understanding of coopetition in a non-western context.

Users’ perception of cybersecurity, trust and cloud computing providers’ performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hongjiang Xu ◽  
Sakthi Mahenthiran
Keyword(s):  
Cloud Computing ◽  
Structural Equation ◽  
Design Methodology ◽  
Positive Relationship ◽  
Least Square ◽  
Equation Modeling ◽  
Content Type ◽  
Ordinary Least Square ◽  
Ordinary Least Square Regression ◽  
Computing Literature

Purpose This study aims to develop a scale to measure the cloud provider’s performance and it investigates the factors that impact that performance from the users’ perspective. Design/methodology/approach This paper proposes a research framework, develops hypotheses and conducts a survey to test the framework. Findings The results from both ordinary least square regression and structural equation modeling analyzes indicate that information technology complexity negatively and significantly affects users’ perception of the cloud computing providers’ performance. Additionally, the trust in the supervisor significantly enhances the otherwise insignificant positive relationship between providers’ cybersecurity capability and users’ perception of their providers’ performance. Originality/value The research makes important contributions to the cloud computing literature, as it measures users’ perception of the cloud computing provider’s performance and links it with cybersecurity, technical complexity and incorporates both the trust in the client firm’s supervisor and the strength of cybersecurity offered by cloud computing provider.

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

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.

scholarly journals EFFECT OF CREDIT RATING ON CAPITAL STRUCTURE: A STUDY ON NON-FINANCIAL FIRMS IN PAKISTAN

2012 ◽  
Vol 12 (1) ◽  
Author(s):  
Keyword(s):  
Capital Structure ◽  
Credit Rating ◽  
Stock Exchange ◽  
Credit Ratings ◽  
Least Square ◽  
Statistical Tool ◽  
Ordinary Least Square ◽  
Optimal Capital Structure ◽  
Financial Firms ◽  
The Impact

Purpose- Aim of this study was to investigate whether the credit rating is an important determinant other than the firm's characteristic to obtain optimal capital structure focusing on the research hypothesis that the firms with higher credit along with the other factors (FTOA, ROA and Size) tend to have more debt in their capital structure of firms rated by P?CR? and Karachi Stock Exchange (KSE). Methodology/Sample- For this research, sample size of 48 observations (3 years data of 16 firms) was taken on the basis of convenience sampling. Results obtained by using Ordinary Least Square Model (OLS) as statistical tool to test the hypothesis Findings- Analysis clearly suggested that credit ratings do have an impact on firm's capital structure. It was concluded that firms with higher credit ratings along with other factors (FTOA, ROA and Size) do not tend to have more debt in their capital structure. Implications- Outcomes of this research might help investors, debtors and other stakeholders of the firms (rated by PACRA) to understand the impact of credit rating on firm's debt ratio and the overall dynamics and mechanism of capital structure.

IPO valuation using the price-multiple methods: evidence from Malaysia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chui Zi Ong ◽  
Rasidah Mohd-Rashid ◽  
Kamarun Nisham Taufil-Mohd
Keyword(s):  
Initial Public Offerings ◽  
Stock Exchange ◽  
Least Square ◽  
Multiple Methods ◽  
Cross Sectional ◽  
Ols Regression ◽  
Content Type ◽  
Public Offerings ◽  
Ordinary Least Square ◽  
Valuation Method

Purpose This study aims to investigate the valuation accuracy of Malaysian initial public offerings (IPOs) by using price-multiple methods. Design/methodology/approach Cross-sectional data including 467 IPOs listed on the Malaysian stock exchange were used for the period of 2000–2017. This study used univariate ordinary least square (OLS) regression to analyse the relationship between IPOs’ price-multiples and comparable firms’ price-multiples. The test of valuation accuracy was conducted via computing valuation errors by segregating the sample into two groups: fixed-price IPOs and book-built IPOs. Furthermore, multiple OLS regression was used to examine the influence of IPO valuation on underpricing. Findings The findings of the results suggested that IPOs price-to-earnings (P/E), price-to-book (P/B) and price-to-sales (P/S) multiples were positively related to the median P/E, P/B and P/S multiples of five comparable firms matched by industry and revenues. The P/S multiple was shown to be the most significant valuation method, specifically in book-built IPOs. The findings indicated that those firms that had a lower valuation in comparison to the comparable firms were inclined to underprice their IPOs to allure investors to subscribe IPOs. In addition, book-built IPOs that had fair valuations were inclined to generate higher initial returns for investors. Practical implications The findings of this study observed implications for underwriters in avoiding the mis-valuation issue by considering the book-building mechanism. Originality/value This study attempted to explore the suitability of the valuation method to value IPOs in Malaysia.

scholarly journals NON-AUDIT SERVICES AND THE CORPORATE GOVERNANCE OF AUDIT CLIENTS

2019 ◽  
Vol 18 (1) ◽  
pp. 167
Author(s):  
Khairul Anuar Kamarudin ◽  
Wan Adibah Wan Ismail ◽  
Jessieca Cherryl Yatan
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Emerging Market ◽  
Least Square ◽  
Board Independence ◽  
Ordinary Least Square ◽  
Big 4 ◽  
Ordinary Least Square Regression ◽  
New Policies ◽  
Non Audit Services

This paper investigates the relationship between corporate governance qualities and the purchase of non-audit services among Malaysian Listed Companies. The sample consists of 709 companies listed on Bursa Malaysia during the year 2014. The study posits that CEO duality, board independence, audit comitte independence, big 4 auditors, the audit committee size, and the frequency of audit committee meetings are associated with the amount of non-audit services. This is basically based on the argument that weaker governance allows the company to jeopardise the independence of external auditor, hence higher level of non-audit services. Company size, profitability, leverage, growth and industry are also included in the study as the control variables. Using the ordinary least square regression model and relevant diagnostic tests, findings shows that only board independence, audit committee independence, audit committee size and big 4 auditors are associated with the level of non-audit services. The results of this study contribute to the present literature on the determinants of non-audit services, especially in emerging market. The result would also be informative to regulators worldwide when considering to apply new policies related to non-audit services.

Impact of pricing mechanism on IPO oversubscription: evidence from Pakistan stock exchange

2020 ◽  
Vol 32 (2) ◽  
pp. 239-254 ◽  
Author(s):  
Waqas Mehmood ◽  
Rasidah Mohd-Rashid ◽  
Abd Halim Ahmad
Keyword(s):  
Initial Public Offerings ◽  
Robust Regression ◽  
Stock Exchange ◽  
Least Square ◽  
Cross Sectional ◽  
Content Type ◽  
Public Offerings ◽  
Ordinary Least Square ◽  
Pricing Mechanism ◽  
Available Information

Purpose The purpose of this paper is to examine the effects of pricing mechanism on initial public offerings (IPOs) oversubscription in Pakistan. Design/methodology/approach This study used cross-sectional data to analyse 85 listed IPOs on the Pakistan stock exchange during the period of 2000-2017 to assess hypotheses related to influential determinants of IPO oversubscription. Accordingly, ordinary least square, robust regression and quantile regression approaches were applied in this study to evaluate the factors that influenced oversubscription. Findings The outcome displayed pricing mechanism is negatively significant with an oversubscription of IPOs. This indicates firms using the fixed-price mechanism signalled higher information asymmetry and uncertainty in their value. Thus, investors are aware that they will be offset with underpricing, and it is expected the demand will be higher for the particular IPOs. Research limitations/implications This study is entirely focused on the available information of prospectus that should not be ignored by potential investors at the time of subscription of IPO. Therefore, the study contributes to extending the available literature in signalling theory whereby issuers should consider using the book-building pricing mechanism in enhancing the efficiency of the IPO offer price during the listing. Originality/value This paper provides evidence for the determinants of the IPO oversubscription.

scholarly journals The performance of Shariah-compliant companies during and after the recession period – evidence from companies listed on the FTSE All World Index

2020 ◽  
Vol 11 (3) ◽  
pp. 573-587 ◽  
Author(s):  
Muhammad Tahir ◽  
Salma Ibrahim
Keyword(s):  
Least Square ◽  
Market Returns ◽  
Content Type ◽  
Return On Equity ◽  
Ordinary Least Square ◽  
Price Earnings Ratio ◽  
Negative Effect ◽  
Ordinary Least Square Regression ◽  
Positive Effect ◽  
Recession Period

Purpose The purpose of this study is to investigate the relative performance of Shariah-compliant companies (SCCs) compared to conventional companies. This study focuses on two periods, the first being the recession period of 2007-2010 and the second, the non-recession period of 2011-2014. Design/methodology/approach A quantitative approach is adopted using an ordinary least square regression model. The chosen variables are those used by previous researchers in conventional studies of corporate performance. Data are selected from individual companies listed on the FTSE All World Index. This study examines two periods of time: the recession of 2007-2010 and the post-recession years of 2011-2014 to analyse performance measured by accounting returns (return on equity, return on asset and earnings per share) and market returns (stock return and price/earnings ratio). Findings The study found that SCCs outperformed non-Shariah compliant companies, in terms of both accounting and market returns during both periods. It was also found that size has a negative effect on performance during both periods. The degree of risk, leverage and growth has no significance in either period, but cash flow from operations has a positive effect on performance in both. Research limitations/implications The study could beneficially be extended by the inclusion of corporate governance variables to assess how these affect performance in SCCs. Originality/value In contrast to previous research carried out on indices, this study uses data from individual companies listed on the FTSE All World Index. It provides insight into the way Shariah ethics can influence performance and suggests that some of the features could be useful if adopted by conventional companies.

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