Mandatory IFRS adoption and managers' compensation: the moderating effect of corporate governance

2017 ◽  
Vol 3 (4) ◽  
pp. 249
Author(s):  
Senda Wali ◽  
Olfa Kamel
Keyword(s):  
Corporate Governance ◽  
Moderating Effect ◽  
Ifrs Adoption

Audit committee characteristics and the moderating effect of Malaysian code of corporate governance on IPO liquidity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amal Mohammed Al-Masawa ◽  
Rasidah Mohd-Rashid ◽  
Hamdan Amer Al-Jaifi ◽  
Shaker Dahan Al-Duais
Keyword(s):  
Corporate Governance ◽  
Initial Public Offerings ◽  
Audit Committee ◽  
Ordinary Least Squares ◽  
Moderating Effect ◽  
Least Squares Regression ◽  
Content Type ◽  
Code Of Corporate Governance ◽  
The Impact ◽  
The Relationship

Purpose This study aims to investigate the link between audit committee characteristics and the liquidity of initial public offerings (IPOs) in Malaysia, which is an emerging economy in Southeast Asia. Another purpose of this study is to examine the moderating effect of the revised Malaysian code of corporate governance (MCCG) on the link between audit committee characteristics and IPO liquidity. Design/methodology/approach The final sample consists of 304 Malaysian IPOs listed in 2002–2017. This study uses ordinary least squares regression method to analyse the data. To confirm this study’s findings, a hierarchical or four-stage regression analysis is used to compare the t-values of the main and moderate regression models. Findings The findings show that audit committee characteristics (size and director independence) have a positive and significant relationship with IPO liquidity. Also, the revised MCCG positively moderates the relationship between audit committee characteristics and IPO liquidity. Research limitations/implications This study’s findings indicate that companies with higher audit committee independence have a more effective monitoring mechanism that mitigates information asymmetry, thus reducing adverse selection issues during share trading. Practical implications Policymakers could use the results of this study in developing policies for IPO liquidity improvements. Additionally, the findings are useful for traders and investors in their investment decision-making. For companies, the findings highlight the crucial role of the audit committee as part of the control system that monitors corporate governance. Originality/value To the authors’ knowledge, this work is a pioneering study in the context of a developing country, specifically Malaysia that investigates the impact of audit committee characteristics on IPO liquidity. Previously, the link between corporate governance and IPO liquidity had not been investigated in Malaysia. This study also contributes to the IPO literature by providing empirical evidence regarding the moderating effect of the revised MCCG on the relationship between audit committee characteristics and IPO liquidity.

Do board directors and good corporate governance improve integrated reporting quality? The moderating effect of CSR: an empirical analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jamel Chouaibi ◽  
Saida Boulhouchet ◽  
Raghad Almallah ◽  
Yamina Chouaibi
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Moderating Effect ◽  
Integrated Reporting ◽  
Board Diversity ◽  
Content Type ◽  
Board Characteristics ◽  
Good Corporate Governance ◽  
Corporate Social

PurposeThis paper targets to shed light on the relationship between board characteristics, good corporate governance and the integrated reporting quality (IRQ) and even if this relationship is moderated by the corporate social responsibility.Design/methodology/approachData from a sample of 185 European firms selected from STOXX 600 Index between 2010 and 2019 are used to test the model using panel data and multiple regression. This paper is motivated by using panel data estimated feasible generalized least squares method. A multiple regression model is used to analyze the moderating effect of the corporate social responsibility on the association between board characteristics, good corporate governance and the IRQ.FindingsConsistent with the expectations, the results showed that there is a positive relationship between board independence, board diversity, good corporate governance and IRQ. Furthermore, the findings suggest that moderating effect positively affects the relationship between the board characteristics, good corporate governance and IRQ.Practical implicationsThe results of this study have an impact on policymakers. The presence of women and independent members of the board should be encouraged. This has a positive effect on the availability of high-quality information, able to drive investment levels and stakeholder participation.Originality/valueThis study supports the existing literature. First, it expands the scientific debate on the topic of integrated reporting (IR). Second, it extends the scope of agency theory, which is rarely used to explain IR-related phenomena. This study is one of the first to examine the moderating effect of corporate social responsibility on the association between a set of governance characteristics (i.e. Board independence and board diversity) and integrated reporting adoption.

CEOs’ accounting-based attributes and earnings management strategies under mandatory IFRS adoption

2018 ◽  
Vol 19 (4) ◽  
pp. 608-625 ◽  
Author(s):  
Amel Kouaib ◽  
Anis Jarboui ◽  
Khaireddine Mouakhar
Keyword(s):  
Earnings Management ◽  
Small Sample Size ◽  
Small Sample ◽  
Moderating Effect ◽  
Audit Committees ◽  
Content Type ◽  
Ifrs Adoption ◽  
Experience Education ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to focus on the moderating effect of mandatory International Financial Reporting Standards (IFRS) adoption on the relationship between chief executive officer (CEO) experience/education and earnings management in European companies. Design/methodology/approach Data from a sample of 302 European firms listed on Stoxx Europe 600 index and 596 CEOs from 2000 to 2014 are used to test the moderation model using moderation regression analysis. Findings Evidence reveals that CEO’s accounting-based attributes are negatively associated with accruals-based earnings management and positively associated with real earnings management (REM). Further, mandatory IFRS adoption significantly moderates the impact of CEO’s accounting-based traits on earnings-management activities. Research limitations/implications A small number of European firms were studied and, given the long study period, many firms with missing data were eliminated. To avoid a small sample size, countries with few observations were included, which leads to an uneven distribution between observations per country. Practical implications Findings from this paper can help: European firms to consider demographic traits when recruiting or promoting executives; the IASB to improve enforcement mechanisms and make IFRS implementation mandatory; and audit committees to effectively monitor REM. Originality/value This study is unique in providing European evidence for the moderating effect of mandatory IFRS adoption on the relationship between CEOs’ accounting experience/education and earnings management activities. This paper is also relevant as it addresses the effectiveness and efficiency of accounting literates.

scholarly journals Foreign Shareholdings Impact on Banks Efficiency and Moderating Role of Corporate Governance

2019 ◽  
Vol 8 (2S9) ◽  
pp. 414-425
Keyword(s):  
Developing Countries ◽  
Corporate Governance ◽  
Country Of Origin ◽  
Developed Countries ◽  
Moderating Effect ◽  
Due Diligence ◽  
The Board Of Directors ◽  
The Impact ◽  
Moderating Role

The research investigate the impact of foreign shareholding originated from developed and developing countries on the efficiency of acquired local banks in Indonesia during 2007-2017 by including Corporate Governance as a moderating variable. Methodology: Using the secondary aggregate data of 29 commercial banks acquired by foreign shareholders, a panel regression model using econometrics methods of GLS, and DEA were applied to examine the effects of percentage of foreign shareholdings on efficiency of the acquired local banks. The main findings; First, percentage of foreign shareholdings positively affecting efficiency of acquired local banks only if the foreign shareholders is originated from developed countries. Second, the level of economic advancement of the country of origin of foreign shareholders has significant effects on the efficiency of the acquired local banks. Third, the increase in the size of the Board of Directors tends to decrease the efficiency of the acquired local banks and fourth, the presence of Foreign Director has a positive moderating effect on strengthening the effect of percentage of foreign shareholdings on the efficiency of the acquired local banks. Overall, the originality of this studies is that the percentage of foreign shareholdings and its country of origin are two combined factors that cannot be separated in affecting the level of efficiency of its acquired local bank and the fact of significant positive moderating effect of Foreign Director. As policy consideration, monetary authority need to perform strict due diligence on prospective foreign shareholders specifically originated from developing countries, advise banks to maintain the existence of Foreign Director and to encourage small local banks to be merged prior to the acquisition by foreign shareholders.

scholarly journals Does a Firm’s Corporate Governance Enhance the Beneficial Effect of IFRS Adoption?

2019 ◽  
Vol 11 (3) ◽  
pp. 885 ◽  
Author(s):  
Jaeyon Chu ◽  
Kyongsun Heo ◽  
Jinhan Pae
Keyword(s):  
Corporate Governance ◽  
Beneficial Effect ◽  
Stock Price ◽  
Earnings Forecasts ◽  
Governance Structure ◽  
Forecast Errors ◽  
Corporate Governance Structure ◽  
Ifrs Adoption ◽  
Prior Literature ◽  
Specific Factors

Prior literature suggests that the effect of adopting the International Financial ReportingStandards (IFRS) could vary by country-specific or firm-specific factors. In particular, we focus onthe effect of the strength of corporate governance of a firm, a firm-specific characteristic, prior tothe adoption of IFRS. Specifically, we use the Korea Corporate Governance Stock Price Index, ametric for the corporate governance structure in Korea, to examine whether the corporategovernance structure influences the effect of IFRS adoption on the analyst’s earnings forecasts inKorea. We find that the beneficial effect of IFRS adoption on analyst forecast errors is observed forfirms with moderate corporate governance prior to IFRS adoption, but not for firms with superioror inferior corporate governance. We interpret our findings such that firms with strong or weakcorporate governance do not benefit from IFRS adoption, because firms with strong corporategovernance already had transparent information system prior to IFRS adoption and firms withweak corporate governance failed to implement IFRS properly.

scholarly journals Challenges and Barriers in Convergence of IND_AS with IFRS: A Perspective Investigation on Indian Professionals and Officials

2019 ◽  
Vol 8 (4) ◽  
pp. 25
Author(s):  
Lohrasp Sadri
Keyword(s):  
Corporate Governance ◽  
Literature Review ◽  
Quantitative Research ◽  
Design Methodology ◽  
Implementation Phase ◽  
Ifrs Adoption ◽  
Software Companies ◽  
Initial Stage ◽  
Structured Questionnaire

Purpose: The paper examines the perception of officials and professionals in implementing IFRS at pre-initial stage. India accepted to implement the IFRS from 1st April 2016 despite reluctance from practitioners. Paper explores the responses towards challenges in implementation of IFRS rather than its effects after implementation.  Design / Methodology / Approach: Quantitative research is used with use of structured questionnaire. The survey provided 192 responses from across India.Findings: Study questioned the readiness in adoption of IFRS and handling the challenges. Both officials and professionals have similar concern in implementing IFRS. Both groups agreed on the importance and usefulness of globally harmonizing AS but do not find it easy to adapt IND-AS to IFRS and have many concerns over it. Moreover, IASB is not properly emphasising in smoothening the process of implementation other than just organizing training sessions. Young and skilled professionals appreciated more of IFRS implementation than elderly and less skilled. Female participants are more receptive than men. Indian software companies were already using US GAAP norms for more than a century.Implications / Contributions: Analysis suggested IASB to focus on implementing issues and must work in coordination with national boards of every country to address those issues locally.Suggestions: Involvement of corporate houses, local authorities, boards, national agencies, professionals and officials are required for success of IFRS adoption. The Author is preparing to submit a report to IASB to facilitate them in bringing effectiveness for the same purpose.     Originality of Study / Importance: The study focuses on issues specifically raised by officials and professionals of India. No study conducted with this perspective especially on India.Scope of Study: Based on the literature review, corporate governance is identified as an important area as the scope of this study in order to bring the effectiveness of implementation phase of IFRS within Indian companies, and to identify different factors that increases risk of failure. Further, it is important to study the role of monitoring institutions, regulators, and government in encouraging professionals and officials to smoothen the implementation phase in India. Nevertheless, effects after implementation need to be studied further. 

Sign in / Sign up

Export Citation Format

Share Document