scholarly journals Determinants of compliance with audit committee rules: Evidence from Indonesia

2014 ◽  
Vol 12 (1) ◽  
pp. 609-620 ◽  
Author(s):  
Ari Kuncara Widagdo ◽  
Susela Devi Suppiah
Keyword(s):  
Institutional Investors ◽  
Audit Committee ◽  
Listed Companies ◽  
Family Control ◽  
Different Types ◽  
Foreign Institutional Investors

The main objective of this study is to investigate the extent of public listed companies compliance with the audit committee rules and to examine the association between Indonesian business characteristics and the compliance of public listed companies with the rules. The results indicate that the compliance of public listed companies with the rules is unsatisfactory. In terms of determinants of the compliance, the different types of family control have a different effect on the compliance of public listed companies with the rules. Additionally, public listed companies with politically connected independent commissioner are less likely to comply with the rules. In contrast, public listed companies with large genuine foreign institutional investors are more likely to comply with the rules

scholarly journals The Informational Response of Different Investor Types on Futures Return Fluctuations: Evidence from Taiwan’s Index Futures Market

2021 ◽  
Vol 18 ◽  
pp. 1339-1348
Author(s):  
Chen-Cheng Chien ◽  
Chun-Nan Chen
Keyword(s):  
Institutional Investors ◽  
Futures Market ◽  
Price Impact ◽  
Individual Investors ◽  
Index Futures ◽  
Current Period ◽  
Different Types ◽  
Foreign Institutional Investors ◽  
Trading Volumes ◽  
The Impact

This article examines the price impact of different types of investors' trading activities in the Taiwan index futures market on the market, and explores the information roles of different types of investors. We find the trading volumes of different investors in the index futures market affect futures returns through information. The impact on index futures returns in the current period is small, showing the ability of foreign institutional investors to quickly respond to negative news and obtain information advantages. Further, from the MSE and QLIKE loss functions, individual investors use EGARCH(1,1), domestic institutional investors TGARCH(1,1), and foreign institutional investors GARCH(1,1). Further, the imbalance of buy and sell orders is suitable for the fluctuation of futures returns using EGARCH(1,1).

scholarly journals The Impact of Board Gender Diversity and Foreign Institutional Investors on the Corporate Social Responsibility (CSR) Engagement of Chinese Listed Companies

2019 ◽  
Vol 11 (2) ◽  
pp. 307 ◽  
Author(s):  
M. A. Gulzar ◽  
Jacob Cherian ◽  
Jinsoo Hwang ◽  
Yushi Jiang ◽  
Muhammad Safdar Sial
Keyword(s):  
Institutional Investors ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Listed Companies ◽  
Chinese Listed Companies ◽  
Foreign Institutional Investors ◽  
Board Gender Diversity ◽  
Corporate Social ◽  
The Impact ◽  
Csr Engagement

The main purpose of this research is to examine the impact of board gender diversity and foreign institutional investors on the corporate social responsibility engagement of Chinese listed companies by considering a sample from the China Stock Market and Accounting Research (CSMAR) database of all non-financial firms listed on the Shanghai stock exchange and the Shenzhen stock exchange during the period from 2008–2015. The CSR is engaged by using the data from the CSMAR database at the firm level, and ranks the CSR disclosures of Chinese companies separately. The recent CSR promotion in China produced a visible increase in attracting female members on the board and members as foreign institutional investors by Chinese listed companies. The findings also showed that the greater the presence of female directors on the board, the stronger the CSR engagement would be. According to critical mass theory and team dynamics, these findings further broaden the accounts that emphasize social networks based on gender. Hence, female members on the board of directors emerged to be significant as a gender mix with extending CSR change. Therefore, our results added a new aspect to the emerging literature on CSR-engagement and gender especially in China. Due to intense political forces and networks in the Chinese listed entities, foreign institutional investors (FIIS) have less incentive to enhance CSR engagement further. Thus, the impact of foreign institutional investors on CSR engagement is as yet unknown, but we improved our knowledge about how the international aspects affect CSR in China. Furthermore, our results are robust, which concern control variables under consideration.

Impact of female directors on the board and foreign institutional investors on earning manipulation of Chinese listed companies

2019 ◽  
Vol 11 (3) ◽  
pp. 288-300 ◽  
Author(s):  
Muhammad Safdar Sial ◽  
Xuan Vinh Vo ◽  
Lara Al-Haddad ◽  
Thao Nguyen Trang
Keyword(s):  
Institutional Investors ◽  
Generalized Method Of Moments ◽  
Listed Companies ◽  
Research Database ◽  
Earnings Manipulation ◽  
Content Type ◽  
Female Directors ◽  
Chinese Listed Companies ◽  
Foreign Institutional Investors ◽  
The Impact

Purpose The purpose of this paper is to check the impact of female directors on the board and foreign institutional investors on earnings manipulation. Design/methodology/approach The data sample includes Chinese listed companies on the Shenzhen and Shanghai stock exchanges. The data are collected from China Stock Market and Accounting Research database covering the period from 2010 to 2017. The authors use a dynamic generalized method of moments in the study. Findings The findings show that the presence of female director on the board has a significant negative impact on both discretionary accruals and real earning management. However, the authors obtain different results for foreign institutional investor investors. This may be the result of myopia as the foreign institutional stockholders in Chinese companies are looking for quick profit encouraging management to manipulate earnings. the findings survive several robustness tests. Originality/value The authors expect the research results provide ample evidence about how female directors affects earnings manipulation, and also hope the research helps to understand how, in China, institutional ownership affects earnings manipulation.

scholarly journals Difficulties in being responsible institutional investors: evidencefrom Malaysia

2019 ◽  
Vol 16 (4) ◽  
pp. 507-520
Author(s):  
Hairul Azlan Annuar
Keyword(s):  
Corporate Governance ◽  
Emerging Markets ◽  
Financial Performance ◽  
Institutional Investors ◽  
Design Methodology ◽  
Shareholder Activism ◽  
Listed Companies ◽  
Qualitative Approach ◽  
Content Type ◽  
Different Types

Purpose The purpose of this paper is to ascertain whether institutional investors in Malaysia faced limitations when they are involved in the corporate governance of their investee companies. Design/methodology/approach A qualitative approach, consisting of a series of interviews with senior investment managers of different type of institutional investors, was chosen. In total, 18 interviews were conducted over a period of two months, which is thought to sufficiently provide the answers to the research purpose. Findings The interviews revealed there are difficulties in monitoring all investee companies due to lack of time and resources. Traditional measures such as company financial performance and dividend policy, continued to be favored and rigorously monitored. The overdependence on hard criteria may be a result of a culture of overly rewarding beneficiaries and a lack of expertise in being involved in specialized company areas such as strategy. Strict regulations hamper effort to be more involved in governing investee companies. Research limitations/implications The research used interviews and generalization may become an issue. In addition, access to many managers depended on recommendations, and the respondents are selected to represent the different types of institutional investors. Originality/value Investigation into factors that may limit institutional investors’ involvement in corporate governance in Malaysian public listed companies, especially from a more qualitative viewpoint, is lacking. In addition, this paper advances the understanding of shareholder activism by adding to the literature by exploring the issue in a specific emerging markets context.

Does the research meeting affect the shareholding ratio of institutional investors in listed companies? Empirical evidence from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jingqin Zhang ◽  
Yong Ye
Keyword(s):  
Empirical Research ◽  
Institutional Investors ◽  
Stock Price ◽  
Stock Exchange ◽  
Listed Companies ◽  
Investment Efficiency ◽  
Content Type ◽  
Different Types ◽  
Research Meeting ◽  
The Impact

PurposeThis paper discusses whether institutional investors change the shareholding ratio of listed companies through research meeting, and whether this active investment mode can really improve the investment efficiency of institutional investors.Design/methodology/approachUsing empirical research method, this study designs and conducts an empirical research according to empirical research's basic norms. Thus, we acquire needed and credible empirical data. This study analyzes whether institutional investors seek their private interest in researched companies by analyzing their research meetings and the shareholding ratios of different types of institutional investors using Shenzhen Stock Exchange data on listed firms from 2014 to 2018.FindingsThis study finds that the research meetings of institutional investors provide participants with reliable information which supports the decision of institutional investors to change their shareholding ratio. The stock price growth rate strengthens the positive correlation between the research meetings of institutional investors and the shareholding ratio of institutional investors. Additionally, transactional institutional investors increase the shareholding ratio, while holding institutional investors do not.Originality/valueThis paper combines the behavior of institutional investors with the holding status of institutional investors, and discusses the impact of institutional investors' behavior on investment decisions. At the same time, it classifies the institutional investors and discusses the attitude of different types of institutional investors towards this active investment mode.

scholarly journals Research on the Effect of Executives as Audit Committee Members on Internal Control Weakness

2021 ◽  
Vol 14 ◽  
pp. 275-303
Author(s):  
Yange Li
Keyword(s):  
Board Of Directors ◽  
Internal Control ◽  
Audit Committee ◽  
Listed Company ◽  
Listed Companies ◽  
Executive Directors ◽  
Different Types ◽  
The Board Of Directors ◽  
The Impact ◽  
The Chairs

The Audit Committee is a specialized agency under the Board of Directors, and supervising the company's internal control is one of its duties. This article takes the 2012-2017 Shanghai-Shenzhen A-share non-financial listed company as a research sample, focusing on the chairmen, CEOs, CFOs, board secretaries and executive directors other than the CEO, discussing the impact of their concurrent appointment as audit committee members on the arising, correction and repair of internal control weakness in listed companies. The study found that different types of executives who are concurrently members of the audit committee would lead the internal control weakness to different directions. In general, excluding some less significant results, executives concurrently serve as members of the audit committee could stimulate the arising of internal control weakness and promote the correction and repair of the existing internal control weakness of the listed company. This indicates that when a listed company does not have internal control weakness, its executive layer intervention will weaken the effectiveness of the audit committee's governance and induce the arising of internal control weakness. Conversely, when the company inherently has internal control weakness, the intervention will strengthen the effectiveness of the audit committee's governance, making the audit committee more effective in monitoring internal control weakness. In addition, an important finding is that the existence of the Secretary of the board among the members of the audit committee will limit the chairs’ role in promoting internal control deficiencies.

Audit Committee Effectiveness Among Malaysian Listed Companies

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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