Audit committee characteristics and tax aggressiveness

2019 ◽  
Vol 35 (2) ◽  
pp. 272-293 ◽  
Author(s):  
Manon Deslandes ◽  
Anne Fortin ◽  
Suzanne Landry
Keyword(s):  
Audit Committee ◽  
Gender Diversity ◽  
Tax Planning ◽  
Future Research ◽  
Board Governance ◽  
Content Type ◽  
Tax Rate ◽  
Tax Aggressiveness ◽  
Financial Expertise ◽  
And Gender

Purpose This study aims to analyze the relationship between a company’s use of aggressive tax planning and several audit committee members’ characteristics, namely, independence, expertise, diligence and gender diversity. Design/methodology/approach This paper is an empirical research using archival data from 289 Canadian listed companies for the 2011-2015 period. Findings The authors find that measures of expertise and diligence are significantly related to tax aggressiveness. Financial expertise and tenure on the audit committee play an important role in constraining tax aggressiveness, as does having a larger audit committee. Research limitations/implications One limitation – and an area for future research – is that the effects of the audit committee members’ relationships with managers of the firms were not investigated. Practical implications Knowledge of audit committee characteristics may send a signal to shareholders, investors and tax agencies regarding the company’s potential risk with respect to aggressive tax planning. The analysis provides useful insights for board governance committees when determining the profile of persons to nominate for board positions and committees. In discussing tax-risk management, the study may heighten audit committee members’ awareness of their role in this respect. Originality/value This study’s results indicate that even in a setting where incentives for firms to be tax-aggressive is low compared to high-tax rate countries, there is variability in firms’ tax aggressiveness. This situation allows us to find audit committee characteristics that are effective in decreasing tax aggressiveness.

Audit committee effectiveness and financial reporting timeliness

2018 ◽  
Vol 9 (1) ◽  
pp. 34-55 ◽  
Author(s):  
Ahmed Atef Oussii ◽  
Neila Boulila Taktak
Keyword(s):  
Financial Reporting ◽  
Audit Committee ◽  
Emerging Market ◽  
Listed Companies ◽  
Audit Committees ◽  
Future Research ◽  
Governance System ◽  
Content Type ◽  
Financial Expertise ◽  
The Impact

Purpose The purpose of this paper is to investigate whether there is any relationship between the effectiveness of an audit committee and the financial reporting timeliness of Tunisian listed companies as proxied by external audit delay (AD). Analysis focuses on five audit committee characteristics: authority, financial expertise, independence, size and diligence. Design/methodology/approach Empirical tests address 162 firm-year observations drawn from Tunisian listed companies during 2011-2013. Findings Multivariate analyses indicate that audit committees with members who have financial expertise are significantly associated with shorter AD. Thus, the results suggest that audit committee financial expertise contributes to the improvement of financial statements’ timeliness. Research limitations/implications The audit committee attributes examined in this study were based on DeZoort et al. (2002) framework. There could be other aspects of audit committee effectiveness such as audit committee tenure and audit committee chair characteristics, which were not addressed in the present study. Thus, future research may consider and examine these other components of audit committee effectiveness. Practical implications Findings have managerial implications. Companies can re-look into how to further improve audit committee composition in order to enhance the timeliness of financial reporting. The issues of audit committee effectiveness and timely reporting also affect regulators and policy makers since they need to play a role in the establishment of effective audit committees and the improvement of financial reporting timeliness. Originality/value This study is one of few that have examined the impact of audit committee effectiveness on ADs in an emerging market country. Findings lend credence to the belief that audit committee members’ financial expertise enhances the quality of financial reporting by firms in a North African market criticized for the lack of maturity of its corporate governance system (Klibi, 2015; Fitch Ratings, 2009).

Disrupting board appointments: Australia's governance guidelines and gender capital

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alison Sheridan ◽  
Linley Lord ◽  
Anne Ross-Smith
Keyword(s):  
Social Capital ◽  
Gender Diversity ◽  
Future Research ◽  
Small Data ◽  
Content Type ◽  
Board Directors ◽  
And Gender ◽  
Board Dynamics ◽  
Human And Social Capital ◽  
Gender Capital

PurposeThe purpose of this paper is to identify how board recruitment processes have been impacted by the Australian Securities Exchange (ASX) governance changes requiring listed boards to report annually on their gender diversity policy and profile.Design/methodology/approachEmploying a social constructivist approach, the research analyses interviews conducted with matched samples of board directors and stakeholders in 2010 and 2017 about board recruitment in ASX50 companies.FindingsThe introduction of ASX guidelines requiring gender reporting disrupted traditional board appointment processes. Women's gender capital gained currency, adding an additional dimension to the high levels of human and social capital seen as desirable for board appointments. The politics of women's presence is bringing about changes to the discourse and practice about who should/can be a director. The authors identify highly strategic ways in which women's gender capital has been used to agitate for more women to be appointed to boards.Research limitations/implicationsWhile sample sizes are small, data within the themes cohered meaningfully across the time periods, making visible how women's presence in the board room has been reframed. Future research could consider what this may mean for board dynamics and how enduring are these changes.Practical implicationsThis study highlights the forms that human and social capital take in board appointments, which can be instructive for potential directors, and how these intersect with gender capital. The insights from the study are relevant to board recruitment committees seeking to reflect their commitment to a more gender equitable environment.Originality/valueThere has been a recalibration of men's and women's gender capital in board appointments, and there is now a currency in femaleness disrupting the historical privilege afforded “maleness”.

scholarly journals Tax Aggressiveness, Corporate Governance and Audit Fees: A Study of Listed Firms in Nigeria

2020 ◽  
Vol 11 (6) ◽  
pp. 278
Author(s):  
E. A. Onatuyeh ◽  
I. Ukolobi
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Gender Diversity ◽  
Female Gender ◽  
Audit Fees ◽  
Board Independence ◽  
Tax Rate ◽  
Tax Aggressiveness ◽  
Listed Firms ◽  
Board Gender Diversity

The concept of audit fee has received immense empirical investigation in literature. However, these vast studies have not sufficiently explored the relation of the concept with tax aggressiveness and corporate governance. This study therefore sought to provide empirical evidence as to whether tax aggressive and corporate governance mechanisms are significantly associated with audit fees among listed firms in Nigeria. Leaning on the agency and stakeholder theories, the study examined the measures of tax aggressiveness of effective tax rate and cash tax rate as well as corporate governance mechanisms of board gender diversity, audit committee diligence, and board independence; and how these variables explain changes in external audit fees. A sample of one hundred and seven (107) firms from the entire firms quoted on the Nigerian Stock Exchange as at December, 2018 was utilised. Data were sourced solely from annual financial statements of the studied firms over a ten-year period (2009 to 2018). The panel regression technique, with preference for the random effect model based on the outcome of the Hausman test, was employed to estimate the balanced panel data. The results of the study showed that cash tax rate, audit committee diligence and board independence all exert positive and significant effect on audit fees. Surprisingly, the study revealed a positive but statistically insignificant link between board gender diversity and audit fees. This result may not be unconnected with the low presence of female directors on the board of the firms investigated. In light of the findings, we therefore recommend that more female gender should be allowed to sit on the boards of listed firms in Nigeria in line with the Norwegian model of 40% female gender representation and the Federal Government 35% Affirmative Action. We also recommend that board independence should be encouraged more so as to enhance their oversight functions, and promote quality financial reporting and audit amongst listed firms in Nigeria.

The impact of audit committee on real earnings management: Evidence from Netherlands

2020 ◽  
Vol 4 (1) ◽  
pp. 33-46 ◽  
Author(s):  
Sana Masmoudi Mardessi ◽  
Yosra Makni Fourati
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Real Earnings Management ◽  
Financial Expertise ◽  
Relevant Topic ◽  
And Gender ◽  
The Impact

This paper aims to examine the effect of the characteristics of an audit committee on real earnings management in the Dutch context. Our sample is composed of 80 non-financial companies listed on the Amsterdam Stock Exchange during the period between 2010 and 2017. Four proxies are used to measure audit committee characteristics, namely, audit committee independence, financial expertise, gender diversity, and audit committee meetings. To test our hypotheses, we use a regression model to identify the influence of a set of audit committee characteristics on real earnings management after controlling for firm audit committee size, leverage, size, loss, growth and board size. Our analyses provide evidence that audit committee independence and gender diversity constrain real earnings management. Our findings also suggest that audit committee financial expertise reduces to some extent the likelihood of engaging in real earnings management. To the best of our knowledge, the Dutch context is not yet explored especially following the issue of the long-awaited new Dutch Corporate Governance Code in 2016 which has been updated for a long period in 2008. Therefore, corporate governance is a relevant topic in the Netherlands. This study contributes geographically to the Audit Committee and earnings management literature that examines another possible method, specifically, real earnings management.

Corporate governance and sustainability reporting quality: evidence from Nigeria

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Olayinka Erin ◽  
Alex Adegboye ◽  
Omololu Adex Bamigboye
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Gender Diversity ◽  
Reporting Quality ◽  
Sustainability Reporting ◽  
Board Governance ◽  
Content Type ◽  
Listed Firms ◽  
Board Gender Diversity

Purpose This study aims to examine the association between corporate governance and sustainability reporting quality of listed firms in Nigeria. Design/methodology/approach The authors measure corporate governance using board governance variables (board size, board independence, board gender diversity and board expertise) and audit committee attributes (audit committee size, audit expertise and audit meeting). The authors measured sustainability reporting quality using a scoring system, which ranges between 0 and 4. The highest score is achieved when sustainability reporting is independently assured by an audit firm. The lowest score refers to the absence of sustainability reporting. The study emphasizes 120 listed firms on Nigeria Stock Exchange using the ordered logistic regression technique. Findings The results indicate that board governance variables (board size, board gender diversity and board expertise) and audit committee attributes (audit committee size, audit expertise and audit meeting) are significantly associated with sustainability reporting quality. Additional analysis reveals that external assurance contributes to the quality of sustainability reporting through corporate governance characteristics. Research limitations/implications This study is restricted to a single country. Future studies should consider a cross-country study, which may help to establish a comparative analysis. Likewise, the future study could consider other regression techniques using a continuous measurement of the global reporting initiative in measuring sustainability reporting quality. Practical implications This study’s findings have important implications for policymakers and practitioners, especially the corporate executives and top management. Companies are encouraged to restructure their board to enhance better monitoring and support towards better sustainability reporting. Social implications Disclosure on sustainability reporting helps corporate organizations advance the issues of sustainability both nationally and globally. Originality/value This current study adds to accounting literature by examining how corporate governance contributes to sustainability reporting practices within the Nigerian context. Drawing from the result, the study provides strong interconnectivity between the corporate board and audit committee in driving sustainability reporting quality within an organizational context.

scholarly journals Individual and group antecedents of satisfaction: One lab- multilevel study

2016 ◽  
Vol 32 (2) ◽  
pp. 565 ◽  
Author(s):  
Isabel M. Martínez ◽  
Eva Cifre
Keyword(s):  
Hierarchical Linear Modeling ◽  
Self Efficacy ◽  
Work Group ◽  
Gender Diversity ◽  
Group Cohesion ◽  
Future Research ◽  
Linear Modeling ◽  
Level 1 ◽  
And Gender ◽  
Individual Self

<p>This study examines the simultaneous effect of individual (self-efficacy) and group variables (cohesion and gender diversity) on satisfaction. A laboratory study was conducted involving 373 college students randomly distributed across 79 small groups, who performed a laboratory task in about five hours. Two-level Hierarchical Linear Modeling (HLM) method was used. Results show the main effect from individual self-efficacy to satisfaction (both level 1), the cross-level effect from group cohesion (level 2) to individual satisfaction (level 1), and the interaction effect between self-efficacy and gender diversity to satisfaction. These results suggest that in a work group, satisfaction has a background in individual and group variables. Group cohesion and gender diversity have important effects on satisfaction. The article concludes with practical strategies and with limitations and suggestions for future research.</p>

The direct and indirect effect of the existence of risk management on the relationship between audit committee and corporate social responsibility disclosure

2018 ◽  
Vol 25 (9) ◽  
pp. 4125-4138 ◽  
Author(s):  
Sami R.M. Musallam
Keyword(s):  
Risk Management ◽  
Indirect Effect ◽  
Audit Committee ◽  
Committee Meeting ◽  
Content Type ◽  
Financial Expertise ◽  
Csr Disclosure ◽  
Corporate Social ◽  
Relationship Of ◽  
The Relationship

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.

Critiquing the marginalised place of research on women within international business

2016 ◽  
Vol 12 (4) ◽  
pp. 348-368 ◽  
Author(s):  
Snejina Michailova ◽  
Kate Hutchings
Keyword(s):  
International Business ◽  
Future Research ◽  
Critical Perspective ◽  
Women And Gender ◽  
Content Type ◽  
International Borders ◽  
Research Themes ◽  
The Social ◽  
And Gender ◽  
Considerable Discussion

Purpose This paper aims to provide a critical perspective of how the theme of women, and more broadly gender, have been treated in extant international business (IB) literature. It also suggests meaningful and promising avenues in this research space. Design/methodology/approach This paper is not intended to provide a comprehensive literature review; rather, it offers a critical and reflective view on the development of the IB stream of literature in which discussion of women has been largely marginalised. Findings While women and gender have been topics of considerable discussion across a range of disciplines in the social sciences, they have received limited examination in the IB literature despite this discipline being most suitable for such, given its socio-cultural analyses across international borders and organisations. Research limitations/implications Several themes are suggested as fertile future research avenues. These themes identify gaps in existing knowledge but, more importantly, also problematize prevailing views that IB scholars tend to hold about women and gender. The future research themes suggest that the very context of IB signifies the need for systematic gender analysis which might advance current understanding of women specifically and gender, more broadly, in the IB field. Originality/value This paper makes a salient and timely contribution to the IB field in providing an original, erstwhile unexamined critique of the marginal reflection on women and gender within extant IB research.

#MeToo will sustain demands for US corporate diversity

2021 ◽  
Keyword(s):  
Gender Diversity ◽  
The United States ◽  
Workplace Culture ◽  
Content Type ◽  
Technology Sector ◽  
Corporate Diversity ◽  
Race Ethnicity ◽  
And Gender ◽  
Central Pillar ◽  
Ethnicity And Gender

Significance That turned the eleven-year-old MeToo movement into a central pillar of a broader drive in the United States to address gender, race and social inequality. Since then, the technology sector has become a bit more hospitable to women but still has much to do on employment and workplace culture. Impacts COVID-19 has stalled some of the momentum to #MeToo reforms. The tech sector's persistent poor gender diversity potentially hurts industry competitiveness. Few US states have yet extended sexual harassment protections to cover race, ethnicity and gender identity.

Do females in audit firm governance affect firm performance? Findings from Turkey

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Murat Ocak
Keyword(s):  
Firm Performance ◽  
Least Squares ◽  
Design Methodology ◽  
Gender Diversity ◽  
Ordinary Least Squares ◽  
Content Type ◽  
Audit Firm ◽  
Hierarchical Levels ◽  
And Gender ◽  
Practical Implications

Purpose This study aims to contribute to the literature by offering a different sector and emphasising the importance of females in audit firm (AF) governance on audit firm performance (AFP). Design/methodology/approach Ordinary least squares (OLS) and instrument variables regression (IVREG) with two-stage least squares are used to test the paper’s hypotheses. Findings Both OLS and IVREG estimation results show that both the proportion of females and gender diversity at board and owner levels and the total number of shares of female owners seem to enhance the performance of AFs. Practical implications These results may be important for policymakers and regulators to set a quota for women’s representation on AF governance or decide arrangements for women in AFs as in the regulations for the high hierarchical levels of other corporate firms. Originality/value This paper extends the current literature in the context of AFs in Turkey, positing that females in AF governance might enhance performance to a great extent.

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