scholarly journals The Effect of Related Party Transactions on Egyptian Firm Performance: The Role of Audit Quality

2022 ◽  
Vol 3 (1) ◽  
pp. 83-112
Author(s):  
کریم منصور على حسوبة
Keyword(s):  
Firm Performance ◽  
Audit Quality ◽  
Related Party Transactions

scholarly journals The moderating role of audit quality and firm size in the effect of corporate governance on related party transactions: Evidence from Indonesia

2021 ◽  
Vol 18 (4) ◽  
pp. 166-176
Author(s):  
Perdana Wahyu Santosa ◽  
Sovi Ismawati Rahayu ◽  
Zainal Zawir Simon ◽  
Martua Eliakim Tambunan
Keyword(s):  
Corporate Governance ◽  
Firm Size ◽  
Firm Value ◽  
Information Quality ◽  
Audit Quality ◽  
Stock Exchange ◽  
Transfer Pricing ◽  
Complete Information ◽  
Related Party Transactions

This study aims to analyze the essential corporate governance determinants of related party transactions (RPTs) in Indonesia. Based on a hand-collected sample of three business groups of small, medium, and large-cap publicly listed firms on the Indonesia Stock Exchange (IDX) for 2013–2019, panel regression results find that foreign shareholders and firm size have a significant effect, at –2.402 and 0.248, respectively. The moderating model of audit quality shows that domestic shareholders, foreign shareholders, and firm size are significantly negatively associated, with –5.627 and –5.958 at 5%, respectively. Similar results show that foreign shareholders and independent commissioners significantly negatively affect related party transactions at –2.864 and –1.845, moderating the firm size at 10% and 5%, respectively. The moderation of regression results also indicates that audit quality and firm size tend to strengthen negative effects on the association between related party transactions and corporate governance. The moderation interaction confirms that audit quality will determine that domestic and foreign shareholders tend to increase the number of affiliate transactions. The interaction of complete information quality will force domestic and foreign shareholders to increase the role of affiliate transactions in creating firm value. The larger size of the firm, which is owned by foreign shareholders, will increase the intensity of cross-border related party transactions through the combined effects in the context of internationalization with a tendency of expropriation and transfer pricing practices, which can reduce government tax incomes. Acknowledgment We are grateful to the Ministry of Education, Culture, Research and Technology, Indonesia, for research grant No. 163/E4.1/AK.04.PT/2021, as well as the editor of the Investment Management and Financial Innovations journal, peer reviewers, and some colleagues for their suggestions, criticism and comments that significantly improved this paper.

scholarly journals How Audit Quality Affects the Firm Performance with the Moderating Role of the Product Market Competition: Empirical Evidence from Pakistani Manufacturing Firms

2020 ◽  
Vol 12 (10) ◽  
pp. 4153 ◽  
Author(s):  
Usman Sattar ◽  
Sohail Ahmad Javeed ◽  
Rashid Latief
Keyword(s):  
Firm Performance ◽  
Audit Quality ◽  
Developing Economies ◽  
Market Competition ◽  
Product Market ◽  
Ordinary Least Squares ◽  
Manufacturing Firms ◽  
Product Market Competition ◽  
Method Of Moment

Audit quality (AQ) is a crucial instrument for ensuring transparency and accountability in both the public and private sectors. If the AQ is responsible for the maximization or minimization of profit, then what are the circumstances that make these possible? In this study, we examined the role of the product market competition (PMC) in the relation between the AQ and firm performance (FP). The PMC on the manufacturing firms of Pakistan was divided into two categories—low product market competition (LPMC) and high product market competition (HPMC). This division was calculated using the Herfindahl–Hirschman index (HHI). Then, we used ordinary least squares (OLS), the fixed-effect model, and the generalized method of moment (GMM) to examine the role of PMC on the association between the AQ and FP. The results of the study revealed that the financial performance of firms was enhanced with the quality of the audit. Highly competitive firms demonstrated higher chances to capture the maximum profit and have a positive relationship with FP, while less competitive firms were negatively associated with FP. Furthermore, the HPMC played a vital role in boosting the profit of the firms. On one hand, the connection between the AQ and FP was positively affected by the HPMC. On the other hand, the connection between the AQ and FP was negatively affected by the LPMC. Thus, the findings of this investigation have various implications for owners, investors, shareholders, and governments. This study can help the governments of developing economies to enhance economic conditions by focusing on the industrial sector. This study also contributes to the literature by supporting the agency theory that PMC can mitigate the agency issue between owners and agents.

scholarly journals The Moderating Role of Corporate Social Responsibility in the Association of Internal Corporate Governance and Profitability; Evidence from Pakistan

2021 ◽  
Vol 18 (11) ◽  
pp. 5830
Author(s):  
Jihai Lu ◽  
Sohail Ahmad Javeed ◽  
Rashid Latief ◽  
Tao Jiang ◽  
Tze San Ong
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Social Problems ◽  
Audit Quality ◽  
Industrial Sector ◽  
Least Square ◽  
Corporate Social

At present, climate and other environmental problems are arising because of the development of the industrial sector at a large level. The industrial sector is supposed to be a major cause of climate change problems that lead to global warming. Therefore, corporate social responsibility (CSR) with the help of corporate governance is an imperative approach to control these social problems. Consequently, in the context of the organizational and management theory, agency theory, and the stakeholder theory, this study focuses on important factors of internal corporate governance such as chief executive officer (CEO) power, the board size, independence, ownership concentration, managerial ownership, and audit quality for improving the profitability of firms. Moreover, this study considers corporate social responsibility as a controlling and moderating factor for firm performance and internal corporate governance. We employed ordinary least square (OLS) for endogeneity testing, fixed effect (FE), generalized method of moments (GMM), and feasible generalized least square (FGLS) on data of Pakistani firms for the period of 2010–2019. The results of this study demonstrate the following outcomes: firstly, all internal corporate governance factors are positively linked with firm performance; secondly, corporate social responsibility (CSR) is the most valuable tool for improving profitability. Importantly, this study suggests that all internal corporate governance factors are positively linked with firm performance because of the interactive role of corporate social responsibility (CSR). This study practically contributes to the literature by suggesting the imperative role of corporate social responsibility (CSR) for internal corporate governance, which may help to reduce climate and social problems.

PENGARUH KOMPETENSI, INDEPENDENSI DAN AKUNTABILITAS TERHADAP KUALITAS AUDIT APARAT INSPEKTORAT DALAM PENGAWASAN KEUANGAN DAERAH

2019 ◽  
Vol 3 (02) ◽  
pp. 414
Author(s):  
SULFIANTY SULFIANTY
Keyword(s):  
Sampling Method ◽  
Audit Quality ◽  
Sample Selection ◽  
Selection Method ◽  
Civil Servants ◽  
Financial Supervision ◽  
Internal Auditors

The role of internal auditors is needed to encourage the realization of good and clean governance. This study aims to determine the effect of competence, independence and accountability on inspectorate audit quality in regional financial supervision. Population in this study are all civil servants Inspectorate of Pohuwat Regency. The sample selection method in this study is the saturated or census sampling method. The results of this study indicate that independence and accountability have an influence on audit quality both partially and simultaneously.   Peranan auditor internal sangat diperlukan untuk mendorong terwujudnya tata pemerintahan yang baik dan bersih. Penelitian ini bertujuan untuk mengetahuipengaruh kompetensi, independensi dan akuntabilitas terhadap kualitas audit inspektorat dalam pengawasan keuangan daerah.Populasi dalam penelitian ini adalah seluruh PNS Inspektorat Kabupaten Pohuwato.Metode pemilihan sampel dalam penelitian ini adalah metode sampling jenuh atau sensus.Hasil penelitian ini menunjukkan bahwa kompetensi, independensi dan akuntabilitas memiliki pengaruh terhadap kualitas audit baik secara parsial maupun secara simultan.

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