Audit Committee Competencies and Corporate Disclosure Transparency of Malaysian Government Linked Companies

Purpose The purpose of this study is to shed further light on the characteristics of an audit committee (AC) and its probable relationship with the quality of financial reporting and disclosure. Based on the findings of extant research that there are different factors that may have implications for the AC’ effectiveness, the authors posit an association between the aforementioned financial aspects and AC presence. Design/methodology/approach The authors test their hypotheses by performing panel data analysis on a sample of 100 companies listed on the Tehran Stock Exchange (TSE) during 2013-2014. The tests were conducted by using Eviews software. Findings Examining previously tested characteristics of an AC, the authors indicate that the number of AC meetings held during fiscal year is negatively associated with the quality of corporate disclosure, whereas AC expertise and size are positively associated with the quality firm’s financial disclosure. Their findings are also indicative of a non-significant relationship between other AC attributes and financial reporting quality (FRQ) except for AC independence, which is positively associated with FRQ. Finally, they provide some evidence that the size of a firm positively affects the quality of its financial reporting and disclosure. Research limitations/implications Although the study has been thoroughly considered and cautiously planned, some limitations have yet arisen. Initially, this research was conducted in an Iranian setting where the formation of ACs is on the verge of regulation; therefore, the data utilized for the study only contains the two-year period of ACs’ statutory activity. In addition, a lack of consensus on the precise measures of an AC’s effectiveness could be considered as a restrictive factor. Originality/value The authors’ study contributes to the AC literature by providing empirical evidence of an association between ACs’ different attributes and financial aspects in a newly regulated environment like the TSE. The results provided in this paper could be fruitful for auditors, regulators, institutional investors and policymakers.

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Audit Committee Experts and Mandatory Disclosure Transparency of Malaysian Government Linked Companies

10.15405/epsbs.2020.12.05.13 ◽

2020 ◽

Author(s):

Muhammad Iqmal A Manap

Keyword(s):

Audit Committee ◽

Mandatory Disclosure ◽

Malaysian Government

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The relationship between corporate governance and information disclosures: Evidence from the Philippines

Corporate Ownership and Control ◽

10.22495/cocv15i4c1p6 ◽

2018 ◽

Vol 15 (4-1) ◽

pp. 191-200

Author(s):

Nunthapin Chantachaimongkol ◽

Shuwen Chen

Keyword(s):

Corporate Governance ◽

Southeast Asia ◽

Audit Committee ◽

Listed Companies ◽

The Philippines ◽

Financial Information ◽

Corporate Disclosure ◽

Participation Rates ◽

New Instrument ◽

The Impact

This paper aims to investigate the impact of board characteristics and auditors on the disclosure practices of listed companies in the Philippines. This study used a self-constructed research instrument, namely the ASEAN Disclosure Index, to assess the extent of corporate disclosure of 21 the Philippines’ listed companies from 2011-2015, made out of 105 observations. The index covers 212 information items, with three attributes: financial information (76 items), non-financial information (68 items) and strategic information (68 items). An empirical result reports that the result reveals that an audit committee independence is positively significant at 95% level while board size and a number of board meetings held in the year are negatively significant at 95% level. For other variables covering board independence, a number director participation rates, gender diversity, CEO duality, a number of audit committee meetings, a number of audit committee participation rates and quality of external auditors, no significant relationship was found. This study contributes to the literature by offering a new instrument for assessing the extent of corporate disclosure in Southeast Asia region and also providing a novel viewpoint into the relationships between corporate governance mechanisms on information disclosure practices in a context of developing countries like the Philippines. Definitely, the contributed empirical evidence of this study might also help regulators for enhancing the level of corporate disclosure in the Philippines as well as neighboring countries in Southeast Asia region.

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Corporate governance and management incentives: evidence from the Scandinavian countries

Corporate Governance ◽

10.1108/cg-04-2017-0075 ◽

2018 ◽

Vol 18 (1) ◽

pp. 1-13 ◽

Cited By ~ 3

Author(s):

Belle Selene Xia ◽

Ignace De Beelde

Keyword(s):

Corporate Governance ◽

Audit Committee ◽

Empirical Work ◽

Total Sample ◽

Annual Reports ◽

Future Research ◽

Corporate Disclosure ◽

Content Type ◽

Leverage Ratio ◽

Management Incentives

Purpose The Scandinavian boards are known for their “best practices” for corporate governance. This paper aims to examine the management incentives behind corporate disclosure via an empirical study. Design/methodology/approach Many of the previous empirical work have focused on the US data, but the generalizability of such findings is geographically bounded. The set of management incentives in this paper is examined using a total sample of 123 local annual reports via some of the largest publicly listed firms in the Scandinavian countries between the years 2008-2012. Findings The findings of this study reveal that a firm’s financial success originates from the different attributes of corporate governance. Correlation and regression analyses reveal that in terms of firm size, leverage ratio, the existence of audit committee and the independence of CEO, there is a correlation between firm-specific factors and the level of disclosure. In contrast to the previous literature, a positive relationship between corporate disclosure and information asymmetry was not found. Originality/value The results of this study are valuable to the policymakers when implementing regulations on corporate governance control. The strategic implications of the findings on business decisions and future research are also discussed.

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The Effects of Board Compositions and Audit Committee Characteristics on Information Disclosure Practices: A Case of Singapore

Asian Journal of Finance & Accounting ◽

10.5296/ajfa.v10i1.13261 ◽

2018 ◽

Vol 10 (1) ◽

pp. 407

Author(s):

Nunthapin Chantachaimongkol ◽

Shuwen Chen

Keyword(s):

Southeast Asia ◽

Information Disclosure ◽

Audit Committee ◽

Gender Diversity ◽

Ordinary Least Squares ◽

Financial Information ◽

Corporate Disclosure ◽

Participation Rates ◽

Developed Country ◽

New Instrument

This paper aims to investigate the effects of board compositions and audit committee characteristics on disclosure practices in Singapore. The ASEAN Disclosure Index, covering 212 items in 3 domains: Financial Information, Non-Financial Information, and Strategic Management Information, was constructed to capture disclosed information of 22 listed companies from 2011-2015, made out of 110 observations. In the analytical procedure, multiple regression models were tested through EVIEWS 10 with an ordinary least squares (OLS) method to estimate the connection between the predictors and the dependent variable. An empirical result reports that board size, audit committee independence, a number of audit committee meetings and a number of audit committee participation rates have a positive relationship with the level of corporate disclosure while CEO duality has a negative association with information disclosure practices. For other variables covering board independence, a number of board meetings, a number of director participation rates and gender diversity, no significant relationship was found. The findings might help regulators in enhancing the level of corporate disclosure in Singapore as well as neighboring countries in Southeast Asia region. Furthermore, this study also contributes to the literature by offering a new instrument for assessing the extent of corporate disclosure in Southeast Asia region and also providing some insight into the relationship between corporate governance mechanisms on information disclosure practices based on the Asia’s developed country perspective.

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Corporate boards, ownership structures and corporate disclosures

Journal of Applied Accounting Research ◽

10.1108/jaar-01-2016-0001 ◽

2018 ◽

Vol 19 (1) ◽

pp. 20-41 ◽

Cited By ~ 32

Author(s):

Abdalrhman Alnabsha ◽

Hussein A. Abdou ◽

Collins G. Ntim ◽

Ahmed A. Elamer

Keyword(s):

Audit Committee ◽

Future Research ◽

Corporate Disclosure ◽

Corporate Board ◽

Voluntary Disclosures ◽

Firm Level ◽

Content Type ◽

Listed Firms ◽

Ownership Structures ◽

Corporate Websites

Purpose The purpose of this paper is to investigate the effect of corporate board attributes, ownership structure and firm-level characteristics on both corporate mandatory and voluntary disclosure behaviour. Design/methodology/approach Multivariate regression techniques are used to estimate the effect of corporate board and ownership structures on mandatory and voluntary disclosures of a sample of Libyan listed and non-listed firms between 2006 and 2010. Findings First, the authors find that board size, board composition, the frequency of board meetings and the presence of an audit committee have an impact on the level of corporate disclosure. Second, results indicate that ownership structures have a non-linear effect on the level of corporate disclosure. Finally, the authors document that firm age, liquidity, listing status, industry type and auditor type are positively associated with the level of corporate disclosure. Research limitations/implications Future research could investigate disclosure practices using other channels of corporate disclosure media, such as corporate websites. Useful insights may be offered also by future studies by conducting in-depth interviews with corporate managers, directors and owners regarding these issues. Practical implications The evidence relating to the important role that corporate governance mechanisms play in shaping the expectations relating to the level of corporate voluntary and/or mandatory disclosures may be useful in informing investor decisions, as well as future policy and regulatory initiatives. Originality/value This paper contributes to the existing literature by examining the governance-disclosure nexus relating to both mandatory and voluntary disclosures in both listed and non-listed firms operating in a developing country setting.

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Committee Reports: Audit Committee

PsycEXTRA Dataset ◽

10.1037/e543632009-012 ◽

1963 ◽

Author(s):

J. Lewis Yager ◽

Marshall R. Jones

Keyword(s):

Audit Committee

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Pengaruh Good Corporate Governance Terhadap Nilai Perusahaan Dengan Variabel Intervening Profitabilitas

Kajian Bisnis STIE Widya Wiwaha ◽

10.32477/jkb.v25i1.228 ◽

2017 ◽

Vol 25 (1) ◽

pp. 13-39

Author(s):

Achmad Tjahjono ◽

Siti Chaeriyah

Keyword(s):

Corporate Governance ◽

Path Analysis ◽

Executive Director ◽

Audit Committee ◽

Positive Impact ◽

Institutional Ownership ◽

Analysis Tool ◽

Manufacturing Companies ◽

Company Value ◽

Good Corporate Governance

The Company was founded with the goal of increasing the value of the company as well as to provide prosperity for the owners or shareholders. Good Corporate Governance and profitability is an effort to enhance company value. This study aims to determine the influence of good corporate governance to company value with profitability as intervening variable. The population of this research is manufacturing companies listed in Indonesia Stock Exchange in 2010 - 2014. The sample is taken by using purposive sampling method. Under this method, as many as 123 companies were obtained. The analysis tool to test the hypothesis is path analysis with AMOS software version 21. Data analysis method is descriptive analysis, path analysis, and sobeltest. The results of this study indicate that managerial ownership, the audit committee and the profitability have positive impact toward the of the company value, institutional ownership has positive impact but not significant, non-executive director with negative effect tendency on the company value. The results of this study also showed that profitability cannot mediate the effect of good corporate governance mechanisms on company value. It can be suggested to replace the intervening variable with other variables such as quality of earnings instead of profitability since it is declined as an intervening variable. non-executive director and institutional ownership does not contribute any positive and significant effect on company value and profitability. The following research can use another proxy in the measurement process and consider other theories that could explain comprehensively.

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Audit Committee Effectiveness Among Malaysian Listed Companies

Malaysian Management Journal ◽

10.32890/mmj.3.2.1999.8561 ◽

2020 ◽

Author(s):

Shamsul Nahar Abdullah ◽

Ku Nor Izah Ku Ismail

Keyword(s):

Corporate Governance ◽

Audit Committee ◽

Stock Exchange ◽

Listed Companies ◽

The Other ◽

Interactive Effects ◽

Committee Chairman ◽

Kuala Lumpur ◽

Political Costs ◽

Leadership Structure

This study investigates further the previous paper by Shamsul Nahar and Al-Murisi (1997) by examining the interactive effects of the variables in that paper and introducing other variables associated with corporate governance and political costs. The present study postulated that percentage of external directors on audit committee interacted with the presence of an accountant on audit committee and with the number of years an audit committee in existence, respectively, to influence audit committee effectiveness. The study also posited that the interaction of the presence of an accountant on audit committee and the number of years an audit committee in existence positively and significantly influenced audit committee effectiveness. Addition. ally, the roles of leadership structure, audit committee chairman, and a firm's size on audit committee effectiveness were also investigated. Using a multiple regression from a sample consisting the Kuala Lumpur Stock Exchange listed companies, results showed that only a firm's size significantly influenced audit committee effectiveness in the predicted direction. Other variables, on the other hand, did not show any significant influence on audit committee effectiveness.

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