Measuring the effectiveness of selected corporate governance practices and their implications for audit quality: evidence from Qatar

This paper investigates the effect of corporate governance practices on the extent of voluntary disclosure in France. Using a panel of 206 non-financial French listed firms during the period 20062009, we find evidence that voluntary disclosure in annual reports increases with managerial ownership, board and audit committee independence, board meeting frequency, and external audit quality. We also find that frequency of audit committee meetings and diligence of board and auditing are associated with decreased disclosure. Additional findings show that larger, more profitable, and less indebted firms have greater voluntary disclosure.

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Good corporate governance practices and voluntary disclosure in companies listed in the Indonesia Sharia Stock Index (ISSI)

Asian Journal of Islamic Management (AJIM) ◽

10.20885/ajim.vol3.iss1.art5 ◽

2021 ◽

Vol 3 (1) ◽

pp. 45-55

Author(s):

Avininda Dewi Nindiasari

Keyword(s):

Corporate Governance ◽

Financial Reporting ◽

Voluntary Disclosure ◽

Audit Quality ◽

Statistical Tests ◽

Linear Regression Analysis ◽

Strong Relationship ◽

Stock Index ◽

Family Ownership ◽

Governance Practices

Objectives: This study aims to determine the effect of the size of the board of commissioners, the proportion of independent commissioners, family ownership, and audit quality on the level of voluntary disclosure of the company. Design/methodology/approach: An empirical study of 50 companies listed in the Indonesia Sharia Stock Index (ISSI) is conducted using the 2015-2016 annual report. The type of data used is secondary data. The analytical method used in this study is multiple linear regression analysis with SPSS 21. Findings: The results of statistical tests indicate that the size of the board of commissioners and audit quality have a positive and significant effect on the level of voluntary disclosure, while the proportion of independent commissioners and family ownership has no significant effect on the level of voluntary disclosure. Implications: The main implications of the results of this study are the size of the board of commissioners and the audit quality. The size of the board of commissioners has a strong relationship to the level of voluntary disclosure. There is a relationship between the number of the board of commissioners and the national laws that have an impact on monitoring the transparency process and the effectiveness of communication within the company. For audit quality, companies that use Big Four audit firms have an effect on the level of voluntary disclosure since their financial reporting will result in better audit quality with a high level of independence. The results of this study also support that agency theory is able to partially explain the phenomenon of the relationship between corporate governance practices and the level of voluntary disclosure in companies listed in ISSI. Originality/Value: This research is one of the studies that draw a relationship between the size of the board of commissioners and audit quality on the level of voluntary disclosure of companies in Indonesia. This finding provides confidence that the size of the board of commissioners and audit quality complement each other to improve the quality of voluntary disclosure.

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Corporate governance and the value of the firm: An empirical analysis of companies listed in the JSE securities exchange of South Africa

Corporate Ownership and Control ◽

10.22495/cocv10i1art11 ◽

2012 ◽

Vol 10 (1) ◽

pp. 125-136 ◽

Cited By ~ 1

Author(s):

Nelson M Waweru

Keyword(s):

South Africa ◽

Corporate Governance ◽

Firm Value ◽

Audit Quality ◽

Developing Economies ◽

Annual Reports ◽

Executive Directors ◽

Minority Shareholders ◽

Corporate Failure ◽

Governance Practices

This study examines the corporate governance characteristics influencing the value of the value of the firm in South Africa (SA). Corporate governance variables including Block shareholding, Dispensed shareholding, Board size, Proportion of non-executive directors and Audit quality were identified from the corporate governance literature. Using panel data of 247-firm years obtained from the annual reports of the 50 largest companies listed on the JSE Securities Exchange of SA, this study found that block shareholding and the proportion of NEDS as the main corporate governance characteristics influencing the value of the firm in SA. The results of this study are important to the King Committee and other corporate governance regulators in SA, in their effort to improve corporate governance practices and probably minimize corporate failure and protect the wellbeing of the minority shareholders. Furthermore, the study contributes to our understanding of the corporate governance variables affecting firm value in developing economies, especially SA.

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Corporate Governance Practices and Audit Quality: An Empirical Study of the Listed Companies in Egypt

SSRN Electronic Journal ◽

10.2139/ssrn.2257815 ◽

2013 ◽

Cited By ~ 1

Author(s):

Mohammed Soliman Soliman ◽

Mohamed Abd Elsalam

Keyword(s):

Corporate Governance ◽

Empirical Study ◽

Audit Quality ◽

Listed Companies ◽

Governance Practices

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Effect of Firm Characteristics and Corporate Governance Practices on Earnings Management: Evidence from Publicly Listed Property Sector Firms in the Philippines

Vision The Journal of Business Perspective ◽

10.1177/0972262920953428 ◽

2020 ◽

pp. 097226292095342

Author(s):

Cynthia P. Cudia ◽

Aeson L. Dela Cruz ◽

Madeleine B. Estabillo

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Firm Size ◽

Audit Quality ◽

Discretionary Accruals ◽

Cash Flows ◽

The Philippines ◽

Firm Characteristics ◽

Ceo Duality ◽

Governance Practices

Two types of earnings management (EM), opportunistic and efficient motive, were presented in the literature. This article aimed to investigate the type of EM employed by publicly listed property sector firms in the Philippines. Furthermore, the study also examined the effect of firm characteristics and corporate governance practices on firm’s level of EM using discretionary accruals. In conducting this study, panel data econometric technique, particularly the ordinary least squares was used to determine which among the firm-specific characteristics (profitability, leverage, cash flows from operations and firm size) or corporate governance mechanisms (CEO duality, board size, board independence and audit quality) significantly influence publicly listed property sector firms’ EM activities using discretionary accruals. Results show that these firms employ efficient type of EM. Also, cash flows from operations, firm size and CEO duality are statistically significant predictors of EM for property firms. Except for cash flows from operations, these results contradict with prior studies when the same model was subjected for industrial firms. Such similarities and differences from previous studies warrant for further analysis on the peculiarities and intrinsic characteristics of the industrial and property sector in the Philippines. Such will point to certain policy frameworks in enabling EM to be harnessed in satisfying the firms’ bottom lines.

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PENGARUH EARNINGS MANAGEMENT TERHADAP FUTURE PROFITABILITY TERKAIT DENGAN OWNERSHIP STRUCTURE, FIRM SIZE DAN CORPORATE GOVERNANCE PRACTICES

Media Ekonomi ◽

10.25105/me.v20i2.782 ◽

2017 ◽

Vol 20 (2) ◽

pp. 55

Author(s):

Ikhsan Yudha Asmara ◽

Felizia Arni Rudiawarni

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Ownership Structure ◽

Audit Committee ◽

Audit Quality ◽

Stock Exchange ◽

Manufacturing Sector ◽

The Future ◽

Governance Practices ◽

The Impact

This study aims to determine how the effect of earnings management on future profitability business entity engaged in the manufacturing sector listed on the Indonesia Stock Exchange, and how the effects of the ownership structure, company size, and the practice of corporate governance (proxied by the audit quality, independent board member and audit committee) regarding the impact of earnings management on the future profitability of manufacturing sector enterprises listed on the Stock Exchange. This study used a sample of manufacturing sector companies listed on the Indonesia Stock Exchange in the period 2008-2010. The samples used in this study were 262 observations. The sampling method used was probability sampling - judgment / purposive sampling. Independent variables used in this study are earnings management (proxied by the CFO, NDAC, and DAC), ownership structure (proxied by DFAM and INST), firmsize, and corporate governance practices (proxied by the AUDIT, BOD, and AUDCOM). The dependent variable in this study is the future profitability proxied by the variable "and CFOT earnt + 1 + 1. The results of this study were (1) earnings management proved to have a significant impact on the future profitability of manufacturing sector enterprises. The influence that appears different depending on the proxy used; (2) The ownership structure did not have an influence on the behavior of earnings management related to future profitability of manufacturing sector enterprises; (3) firmsize not affect earnings management behaviors related to future profitability of manufacturing sector enterprises; overall corporate governance practices are not effective in influencing the behavior of earnings management related to the future profitability of manufacturing sector enterprises. Keywords : future profitability, earnings management, ownership structure, corporate governance practice

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PENGARUH EARNINGS MANAGEMENT TERHADAP FUTURE PROFITABILITY TERKAIT DENGAN OWNERSHIP STRUCTURE, FIRM SIZE DAN CORPORATE GOVERNANCE PRACTICES

JURNAL INFORMASI, PERPAJAKAN, AKUNTANSI, DAN KEUANGAN PUBLIK ◽

10.25105/jipak.v9i1.4525 ◽

2019 ◽

Vol 9 (1) ◽

pp. 71

Author(s):

Ikhsan Yudha Asmara ◽

Felizia Arni Rudiawarni

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Firm Size ◽

Ownership Structure ◽

Audit Committee ◽

Board Member ◽

Audit Quality ◽

Governance Practices ◽

Governance Practice ◽

Corporate Governance Practice

Penelitian ini bertujuan untuk mengetahui bagaimana pengaruh earnings management terhadap future profitability badan usaha yang bergerak di sektor manufaktur yang terdaftar di Bursa Efek Indonesia, dan bagaimana efek dari struktur kepemilikan, ukuran perusahaan, dan praktik corporate governance (yang diproksikan oleh audit quality, independent board member, dan audit committee) terkait dampak earnings management terhadap future profitability badan usaha sektor manufaktur yang terdaftar di BEI. Penelitian ini menggunakan sampel berupa perusahaan sektor manufaktur yang terdaftar di PT Bursa Efek Indonesia pada periode 2008-2010. Jumlah sampel yang digunakan pada peneiitian ini adalah sebanyak 262 observasi. Metode pengambilan sampel yang digunakan adalah probability sampling — judgment/purposive sampling. Variabel independen yang digunakan pada penelitian ini adalah earnings management (diproksikan oleh CFO, NDAC, dan DAC), ownership structure (diproksikan oleh DFAM dan INST), firmsize, dan corporate governance practice (diproksikan oleh AUDIT, BOD, dan AUDCOM). Variabel dependcn pada penelitian ini adalah future profitability yang diproksikan oleh variabel LIEARNt+1 dan CF0t41. Hasil dari penelitian ini adalah (1) earnings management terbukti pengaruh yang signifikan terhadap future profitability badan usaha sektor manufaktur. Pengaruh yang muncul berbeda tergantung pada proksi yang digunakan; (2) ownership structure ternyata tidak memiliki pengaruh terhadap perilaku earnings management terkait future profitability badan usaha sektor manuiaktur; (3) firmsize tidak mempengaruhi perilaku earnings management terkait future profitability badan usaha sektor manufaktur; corporate governance practice secara keseluruhan tidak efektif dalam mempengaruhi perilaku earnings management terkait future profitability badan usaha sektor manufaktur.

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A cross-firm analysis of corporate governance compliance and performance in Indonesia

Managerial Auditing Journal ◽

10.1108/maj-06-2019-2328 ◽

2020 ◽

Vol 35 (5) ◽

pp. 621-643

Author(s):

Miranda Tanjung

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Audit Quality ◽

Emerging Market ◽

Generalized Method Of Moments ◽

Empirical Literature ◽

Positive Contribution ◽

Content Type ◽

Governance Index ◽

Governance Practices

Purpose The study aims to construct a cross-firm corporate governance index to predict firm performance. The index consists of 15 governance elements from a large sample of the Indonesian firms covering the period from 2003 to 2013. Design/methodology/approach This study presents robust results as the findings are tested by applying the generalized method of moments (GMM) estimator to eliminate endogeneity problems and unobservable heterogeneity posed by the relationship between performance and firm-level governance practices. Findings The results indicate that the corporate governance index is associated with enhanced corporate financial performance. Likewise, the findings reported under the pooled ordinary least squares and GMM also indicate corporate governance sub-indexes (elements), which have significant effects on performance: whistleblower mechanism, audit quality, board of director size and blockholders. Research limitations/implications In the emerging market context, this study supports the notion that active and self-regulated governance practices are appreciated by the market and, in the end, can have a positive impact on financial performance. The analysis adds to the empirical literature by providing insights into how governance provisions are being actively implemented in the micro level. With regard to weak governance practices, this study is consistent with previous studies, according to which, firms have the opportunity to use corporate governance as a way of differentiating themselves from other players in countries with poorly regulated investor protection and institutional settings. Originality/value This study makes a positive contribution, as it looks at the impact of Indonesia’s corporate governance compliance on the basis of a set of 15 unique governance provisions, including the findings of the positive influence of corporate governance in family business.

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