Comprehensive Corporate Governance Mechanism and Disclosure Quality: Evidence from the United Kingdom

2021 ◽  
Vol 12 (3) ◽  
pp. 2852-2872
Author(s):  
Nooraisah Katmon Et.al
Keyword(s):  
Corporate Governance ◽  
United Kingdom ◽  
Audit Committee ◽  
Forecast Accuracy ◽  
Analyst Forecast ◽  
Governance Mechanism ◽  
Disclosure Quality ◽  
Multiple Directorships ◽  
The United Kingdom

Our study empirically examines the relationship between corporate governance and disclosure quality from the context of the United Kingdom. While studies on corporate governance and disclosure quality are extensive, we argue that only limited studies have utilised analyst forecast accuracy as a proxy for disclosure quality. We concentrateon the analyst forecast accuracy since we value the credibility of financial analysts in forecasting the firm’s earnings. Analyst are the expert users of the firm’s information and they rely on their analysis to predict firm’s earnings as well as to make a recommendation. We derived our sample from the analyst perception on the firms with high quality of disclosure that is the Investor Relation (IR) Magazine Award. Specifically we used 127 match-paired sample (i.e., winners and non-winners) of IR Magazine Award during the year 2005-2008. We measure corporate governance using board characteristics, audit committee characteristics, chairman and audit committee multiple directorships, chairman tenure and institutional ownership. Our findings report that multiple directorship by audit committee consistently increases disclosure quality. This suggest that the multiple directorships held by audit committee in other firms potentially improve their knowledge and experience in improving the quality of disclosure.Moreover, the result also shows a negative association between audit committee financial expertiseand board independent on the extent of quality of disclosure. These findings imply that the appointment of audit committee with financial expertise as well as an independent directors are merely a ticking the box activities, thus it appears in the letter form, but not in spirit. Our results are robust across various estimation, alternative measurement as well as endogeneity test that we have conducted.

scholarly journals Disclosure quality vis-à-vis disclosure quantity: Does audit committee matter in Omani financial institutions?

2021 ◽  
Author(s):  
Hidaya Al Lawati ◽  
Khaled Hussainey ◽  
Roza Sagitova
Keyword(s):  
Financial Institutions ◽  
Audit Committee ◽  
Securities Market ◽  
Disclosure Quality ◽  
External Auditors ◽  
Share Ownership ◽  
Multiple Directorships ◽  
Regulatory Bodies ◽  
The Impact

AbstractWe examine the impact of audit committee (AC) characteristics (e.g. AC foreign members, AC female members, AC members with multiple directorships, AC members with share ownership and AC with financial and supervisory expertise) on forward-looking disclosure (FLD) quality and quantity. Using a sample of Omani financial companies listed on Muscat Securities Market over a five-year period (2014–2018), we find that a number of AC characteristics (such as AC size, AC female members and AC with multiple directorships) improve FLD quality. We make no such observation for FLD quantity. The results suggest that the responsibility of AC extends to improving the quality of FLD. We provide an additional analysis on the impact of AC effectiveness (ACE) on FLD quality, which suggests that companies’ compliance with CG code is beneficial for disclosure quality. We also find that the impact of ACE on FLD quality is influenced by corporate performance, leverage and the quality of external auditors. Our findings carry implications for the regulatory bodies’ efforts in encouraging companies to improve disclosure quality by considering AC characteristics as well as appointing more effective AC directors.

scholarly journals Pengaruh Corporate Governance terhadap Nilai Perusahaan pada Perusahaan Perbankan yang Terdaftar di BEI Tahun 2011-2014

Telaah Bisnis ◽  
2017 ◽  
Vol 17 (2) ◽  
Author(s):  
Andy Meindarto ◽  
Fitri Lukiastuti
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Audit Committee ◽  
Earnings Quality ◽  
Linear Regression Analysis ◽  
Institutional Ownership ◽  
Multiple Linear Regression Analysis ◽  
Managerial Ownership ◽  
Governance Mechanism

Abstract This study aims to determine the effect of corporate governance on corporate value with the quality of earnings as an intervening variable. Corporate governance mechanism uses four variables managerial: ownership, institutional ownership, the proportion of independent directors and audit committee. The sample consist of 28 banking companies in 2011-2014. The research used Multiple Linear Regression Analysis to test the influence of in­dependent variables on dependent variable. Varible of earnings quality that measured by DA (Discretionary Accrual) has effect on firm value. Institutional ownership of independent board and audit committee have effect on earning quality. Other variables such managerial owner­ship and institutional ownership have no effect on earnings quality. Institutional ownership and independent board have effect on firm value, meanwhile managerial ownership and the audit committee have no effect on firm value. The value of adjusted R2 for the effect of corporate gov­ernance mechanisms on the quality of earnings was 0.170 or 17%. While the value of adjusted R2 for the effect of corporate governance mechanisms on firm value with the quality of earnings as an intervening variable was 0.311 or 31.1%.

scholarly journals CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE IN THE BANKING SECTOR OF NIGERIA AND THE UNITED KINGDOM

2020 ◽  
Vol 5 (1) ◽  
pp. 8-20
Author(s):  
Ayodeji Ajibade ◽  
◽  
Kofoworola Jaji ◽  
Jerry Kwarbai ◽  
Keyword(s):  
Corporate Governance ◽  
United Kingdom ◽  
Financial Performance ◽  
Audit Committee ◽  
Banking Sector ◽  
Stock Exchange ◽  
Secondary Data ◽  
Multiple Regression Model ◽  
Governance System ◽  
The United Kingdom

Banks are the support system of any economy, hence the significant need for economies to have a healthy system of banking with operative corporate governance system. The study examined the effect of corporate governance and financial performance in the banking sector of Nigeria and United Kingdom. It analysed secondary data collated from the annual report of ten listed banks each from the Nigeria and UK stock exchange markets. Using multiple regression model, the study examined the combined effect of board size, board composition, audit committee and firm size on the performance of the listed banks. The result shows that corporate governance variables have a significant effect on the financial performance of the Nigeria and U.K banking sector. Keywords: Inflation, monetary policy, economic growth, purchasing power, Nigeria.

scholarly journals Corporate governance and risk disclosure quality: Tunisian evidence

2019 ◽  
Vol 9 (4) ◽  
pp. 567-602 ◽  
Author(s):  
Issal Haj Salem ◽  
Salma Damak Ayadi ◽  
Khaled Hussainey
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Annual Reports ◽  
Risk Disclosure ◽  
Disclosure Quality ◽  
Governance Mechanisms ◽  
Content Type ◽  
Corporate Governance Mechanisms ◽  
The Impact

Purpose The purpose of this paper is to investigate the potential influence of corporate governance mechanisms on risk disclosure quality in Tunisia. Design/methodology/approach The authors examine 152 annual reports of Tunisian non-financial-listed firms during 2008–2013, and use the manual content analysis method to measure the risk disclosure quality. Findings The authors find that the quality of risk disclosure in Tunisian companies is relatively low, and also find that the quality of risk disclosure is positively associated with institutional ownership, board independence, the presence of women on the board, the presence of family members on the board and the independence of audit committee. Managerial ownership has a negative effect on risk disclosure quality. Finally, the authors find that the revolution decreases the influence of concentration ownership, government ownership, family ownership and audit committee size on risk disclosure quality. Originality/value Using a comprehensive set of corporate governance mechanisms and a new measure for risk disclosure quality in Tunisia, the authors provide the first empirical evidence on the impact of corporate governance mechanisms on risk disclosure quality in a developing country. The study has theoretical and practical implications for both developed and developing countries.

Corporate Governance Mechanism, Audit Quality and Accrual Quality (Indonesia Manufacturing Company Evidance)

2012 ◽  
Vol 3 (1) ◽  
Author(s):  
Aloysius Harry Mukti ◽  
Ratna Wardhani
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Audit Quality ◽  
Governance Mechanism ◽  
Manufacturing Companies ◽  
Accrual Quality ◽  
Big 4 ◽  
Audit Fee ◽  
Corporate Governance Mechanism

Abstract – This study examines the influence of implementation of corporate governance mechanism and audit quality toward accrual quality of the corporation. The implementation of corporate governance mechanism uses three measures: the effectiveness of the audit committee, board effectiveness and family ownership structure. For audit quality the measurements uses two approaches: amount of audit fee and grouping the company into two groups (audited by the auditor big-4 and audited by auditor non big-4). The study was conducted among selected manufacturing companies in Indonesia, during the period 2007-2009. Based on the results of the study, we find that only the board of Commissioners and grouping the company into two group (audited by the auditor big-4 and audited by auditor non big-4 experience) as a proxy of audit quality significantly improved quality of accrual. Keywords - Corporate governance mechanism, audit quality, accrual quality

scholarly journals The impact of symptoms on quality of life before and after diagnosis of coeliac disease: the results from a Polish population survey and comparison with the results from the United Kingdom

2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Emilia Majsiak ◽  
Magdalena Choina ◽  
Dominik Golicki ◽  
Alastair M. Gray ◽  
Bożena Cukrowska
Keyword(s):  
Quality Of Life ◽  
United Kingdom ◽  
Coeliac Disease ◽  
Gluten Free Diet ◽  
Gluten Free ◽  
The United Kingdom ◽  
Before And After ◽  
The Mean ◽  
The Uk

Abstract Background Coeliac disease (CD) is characterised by diverse clinical symptoms, which may cause diagnostic problems and reduce the patients’ quality of life. A study conducted in the United Kingdom (UK) revealed that the mean time between the onset of coeliac symptoms and being diagnosed was above 13 years. This study aimed to analyse the diagnostic process of CD in Poland and evaluate the quality of life of patients before and after CD diagnosis. In addition, results were compared to the results of the original study conducted in the UK. Methods The study included 2500 members of the Polish Coeliac Society. The patients were asked to complete a questionnaire containing questions on socio-demographic factors, clinical aspects and quality of life, using the EQ-5D questionnaire. Questionnaires received from 796 respondents were included in the final analysis. Results The most common symptoms reported by respondents were bloating (75%), abdominal pain (72%), chronic fatigue (63%) and anaemia (58%). Anaemia was the most persistent symptom, with mean duration prior to CD diagnosis of 9.2 years, whereas diarrhoea was observed for the shortest period (4.7 years). The mean duration of any symptom before CD diagnosis was 7.3 years, compared to 13.2 years in the UK. CD diagnosis and the introduction of a gluten-free diet substantially improved the quality of life in each of the five EQ-5D-5L health dimensions: pain and discomfort, anxiety and depression, usual activities, self-care and mobility (p < 0.001), the EQ-Index by 0.149 (SD 0.23) and the EQ-VAS by 30.4 (SD 28.3) points. Conclusions Duration of symptoms prior to the diagnosis of CD in Poland, although shorter than in the UK, was long with an average of 7.3 years from first CD symptoms. Faster CD diagnosis after the onset of symptoms in Polish respondents may be related to a higher percentage of children in the Polish sample. Introduction of a gluten-free diet improves coeliac patients’ quality of life. These results suggest that doctors should be made more aware of CD and its symptoms across all age groups.

Does corporate governance affect the performance of Islamic banks? New insight into Islamic countries

2020 ◽  
Vol 20 (6) ◽  
pp. 1073-1090 ◽  
Author(s):  
Ejaz Aslam ◽  
Razali Haron
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Positive Impact ◽  
Islamic Banks ◽  
Governance Mechanism ◽  
Method Of Moment ◽  
Content Type ◽  
Return On Equity ◽  
Islamic Countries ◽  
And Performance

Purpose Corporate governance plays a significant role to overcome agency issues and develop the culture of transparency and openness. In this context, this paper aims to examine how corporate governance mechanisms affect the performance of Islamic banks (IBs). Design/methodology/approach Stepwise, two-step system generalize method of moment estimation technique is used in the analysis in which control variables are added into the model sequentially. This study used data on 129 IBs from 29 Islamic countries (Middle East, South Asia and Southeast Asia) during the period of 2008 to 2017. Findings The findings suggest that the audit committee (AUDC) and Shariah board (SB) have positive impact on the performance of IBs (return on assets and return on equity). However, board size and risk management committee have negative and significant effect on the performance of IBs. CEO duality and non-executive directors have mixed relationship with the performance of IBs. These results support the argument that IBs need to improve their financial performance through appropriate governance mechanism. Research limitations/implications The findings of the study added a new dimension to the governance research that could be a valuable source of knowledge for policymakers and regulators to improve the existing governance mechanism for better performance of IBs. Originality/value The study fills the gap in the literature by addressing the issue of corporate governance on performance of IBs across countries. Agency theory is discussed to explain the relationship between corporate governance mechanism and performance.

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