scholarly journals Dynamics of audit lag − board of directors and audit committees’ effect

2015 ◽  
Vol 12 (3) ◽  
pp. 281-294 ◽  
Author(s):  
Rabih Nehme ◽  
Guy Assaker ◽  
Rita Khalife
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Financial Institutions ◽  
Audit Committee ◽  
Audit Committees ◽  
Governance Mechanism ◽  
Audit Report ◽  
Corporate Governance Mechanisms ◽  
External Governance ◽  
The Relationship

Audit procedures are considered to be an external governance mechanism tool used by shareholders from an agency theory perspective. The empirical model is constructed to assess the theoretical and statistical relationship between audit lag and corporate governance characteristics over a period of four years (for FTSE 350 companies excluding financial institutions between 2007 and 2010). This paper studies the effect of corporate governance mechanisms, board of directors and audit committee, on audit report lag. The importance of this research comes from the few studies conducted regarding the relationship between corporate governance and audit report lag. It is crucial to understand the determinants of audit lag in order to minimize it as much as possible and accordingly generate timely information.

Optimizing good Corporate Governance Mechanism to Improve Performance: Case in Indonesia’s Manufacturing Companies

2020 ◽  
pp. 097215092091987
Author(s):  
Ilham Hidayah Napitupulu ◽  
Anggiat Situngkir ◽  
Ferry Hendro Basuki ◽  
Widyo Nugroho
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Financial Reporting ◽  
Audit Committee ◽  
Audit Committees ◽  
Managerial Ownership ◽  
Company Performance ◽  
Governance Mechanism ◽  
Manufacturing Companies ◽  
Good Corporate Governance

The application of good corporate governance (GCG) aims to improve company performance. In implementing GCG, a mechanism is needed, namely a procedure and a clear relationship between the decision-maker and the party overseeing the decision. The mechanism of GCG can be measured by the numbers of board of directors, independent board of commissioners, audit committees, and also managerial ownership. This research is conducted at manufacturing companies listed on the Indonesia Stock Exchange, with a total sample of 52 companies determined by purposive sampling technique. Data are analyzed by using multiple regression analysis with statistical package for the social sciences (SPSS) tools. The findings show that the board of directors and independent commissioners have an influence on company performance, while audit committees and managerial ownership do not affect the company’s performance. The company’s performance is improved by the existence of an independent board of commissioners that provides guidance and direction as well as supervision to the company management. Meanwhile, the audit committee has no influence, because the audit committee is only responsible for assisting the board of commissioners in monitoring the financial reporting process by the management to improve the credibility of financial statements, and managerial ownership does not affect the company’s performance because the number of management shares is quite low, because of which the management cannot influence the decisions taken at the general meeting of shareholders to improve the company’s financial performance. Thus, if the GCG mechanism goes well, then the company’s performance will increase.

How auditor locality affects audit report timeliness

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ameneh Bazrafshan ◽  
Simin Dehghani Madise
Keyword(s):  
Corporate Governance ◽  
Empirical Evidence ◽  
Audit Committee ◽  
Stock Exchange ◽  
Audit Committees ◽  
Audit Report ◽  
Content Type ◽  
Auditor Quality ◽  
The Relationship ◽  
Linear Regressions

Purpose Despite extensive research on the determinates of audit report timeliness, there is limited empirical evidence on the effect of auditor locality on audit report timeliness. Therefore, this study aims to examine the relationship between auditor locality and audit report timeliness. Furthermore, this study investigates the moderating roles of audit committee, corporate governance and auditor quality in this relationship. Design/methodology/approach In this study, the information of 157 companies listed on the Tehran Stock Exchange during the period 2013–2019 has been collected. Moreover, multivariate linear regressions were used to test the hypotheses. Findings Findings show that in general, there is no significant relationship between auditor locality and audit report timeliness. However, empirical evidence suggests that in companies with specialized audit committees, strong corporate governance and high-quality auditors, auditor locality improves audit report timeliness. Originality/value Overall, the results indicate that there are some circumstances in which auditor locality affects the audit report timeliness. Specifically, the association of auditor locality and audit report timeliness is conditional to audit committee, corporate governance and auditor quality.

scholarly journals Corporate governance mechanisms and audit report lag moderated by audit complexity

2019 ◽  
Vol 8 (6) ◽  
pp. 256-261
Author(s):  
Wa Ode Irma Sari ◽  
Bambang Subroto ◽  
Abdul Ghofar
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Financial Statements ◽  
Manufacturing Companies ◽  
Audit Report ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
Negative Effect ◽  
The Relationship

This study aims to verify the correlation between corporate governance mechanisms, reflected independent commissioners, audit committee and audit tenure to audit report lag, and the audit complexity has able to moderate the relationship between corporate governance mechanisms to audit report lag. This study uses a population of manufacturing companies that publish their financial statements on the Indonesian Stock Exchange in 2015-2017. The samples are selected with a purposive sampling method. There is 100 manufacturing company selected as the sample for the period of 2015-2017. This study was tested by using the Moderate Regression Analysis test. The results of this study indicate that the audit committee and audit tenure have a negative effect on audit report lag, but the independent commissioner has an insignificant effect on audit report lag. Audit complexity is proven to increase audit report lag as an increase audit committee. This research provides the capital market authority (OJK) to issue policies and strict sanctions, thus encouraging companies to publish audited financial statements more time.

scholarly journals Directors' Monitoring Role, Ownership Concentration and Audit fees

2020 ◽  
Vol 14 (5) ◽  
pp. 3-25
Author(s):  
Rabih Nehme ◽  
Amir Michael ◽  
Jim Haslam
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Audit Committee ◽  
Audit Fees ◽  
Governance Mechanism ◽  
Corporate Executives ◽  
Corporate Governance Mechanisms ◽  
The Board Of Directors ◽  
Corporate Governance Mechanism

The research objective is to analyse different factors potentially involved in influencing the size of audit fees. The association between the Board of Directors and the shareholders of listed companies should be effectively developed and there should be a higher spirit of compliance with the governance code. The empirical model is constructed to assess the theoretical and statistical relationship between audit fees and corporate governance characteristics over a period of four years (for FTSE 350 companies excluding financial institutions between 2012 and 2015). Different testing techniques are used for robustness reasons. We found that Board of Directors' characteristics are significant in relation to audit fees. Some of the Audit Committee characteristics are affected by the collegiality principle in relation to the Board of Directors' characteristics. The consultative role of audit committee directors is dominated by the role of the Board of Directors. Mandatory audit fees, and not total auditors' remuneration is included in this study. While other studies assess mainly one corporate governance mechanism in relation to audit fees, we include the corporate governance mechanisms that are directly related to auditors' scope. This paper can be used as a tool for audit practitioners and corporate executives to seek a better auditor-client relationship.

scholarly journals The Effect of Corporate Governance Mechanism on Intellectual Capital Disclosure of High IC-Intensive Companies in Indonesia and Malaysia

2021 ◽  
Vol 23 (1) ◽  
pp. 33-48
Author(s):  
Evi Rahmawati ◽  
Naufal Fadlurrahman ◽  
Firda Shofia Azzahra
Keyword(s):  
Corporate Governance ◽  
Intellectual Capital ◽  
Audit Committee ◽  
Stock Exchange ◽  
Audit Committees ◽  
Governance Mechanism ◽  
Governance Mechanisms ◽  
Board Size ◽  
Corporate Governance Mechanisms ◽  
Corporate Governance Mechanism

Research aims: This study examines the effect of corporate governance mechanisms, such as board size, CEO duality, number of the audit committee, board gender, and family ownership, on intellectual capital disclosures.Design/Methodology/Approach: The sample study was high intellectual capital (IC)-intensive companies listed on the Indonesia Stock Exchange and Malaysia Stock during 2017-2018.Research findings: For Indonesia, the results revealed that the number of the audit committee and board size had a positive and significant effect on intellectual capital disclosures. Meanwhile, in Malaysia, the results showed that audit committees had a positive and significant effect on intellectual capital disclosures.Theoretical contribution/Originality: This study adds literature on the effect of corporate governance mechanisms on intellectual capital disclosure of high IC-intensive companies in the development of the country context.

scholarly journals PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP NILAI PERUSAHAAN

2019 ◽  
Vol 1 (1) ◽  
pp. 7-20
Author(s):  
Yushita Marini ◽  
Nisha Marina
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Financial Statements ◽  
Audit Committees ◽  
Independent Directors ◽  
Governance Mechanism ◽  
The Board Of Directors ◽  
Corporate Governance Mechanism

This study aimed to get empirical evidence regarding the corporate governance mechanism proxied by the size of the board of commisioners, independent directors, the size of the board of directors and audit committees that affect the value of the company. This study using purposive sampling method for collecting samples of the companies listed in Indonesia Stock Exchange that publish the complete annual financial statements for 2010-2014, have the data necessary corporate governance in research, the company has never delisted and present its financial statements in Indonesian Rupiah , From the analysis of the study showed that the size of the board of commisioners, independent directors, and the size of the board of directors affect the value of the company, while the audit committee does not affect the value of the company.

scholarly journals The effect of financial and non-financial performance on investors’ reactions: The role of corporate governance mechanisms as moderating

2022 ◽  
Vol 10 (8) ◽  
pp. 47-56
Author(s):  
Intadaviqotul Minakh ◽  
Erwin Saraswati ◽  
Abdul Ghofar
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Boards Of Directors ◽  
Audit Committee ◽  
Institutional Ownership ◽  
Audit Committees ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
The Relationship

The purpose of this study is to examine the effect of financial and non-financial performance on investor reactions and the role of corporate governance mechanisms as moderating. The analysis technique used is the moderated regression analysis (MRA). The research population is manufacturing sector companies listed on the Indonesia Stock Exchange (IDX). Based on the purposive sampling method, 78 companies were selected as the samples (390 firm-year observations). The results of this study provide empirical evidence that the existence of financial and non-financial performance in a company can increase investor reactions. Institutional ownership plays a role in the relationship between financial performance and investor reactions. Meanwhile, independent commissioners, boards of directors, and audit committees have no role in the relationship between financial performance and investor reactions. And independent commissioners and institutional ownership can moderate the influence of non-financial performance on investor reactions. Meanwhile, the board of directors and audit committee cannot moderate the influence of non-financial performance on investor reactions.

scholarly journals PENGARUH MEKANISME GOOD CORPORATE GOVERNANCE TERHADAP KINERJA KEUANGAN PADAPERBANKAN YANG TERDAFTAR DI BURSA EFEK INDONESIA (BEI)

2019 ◽  
Vol 7 (1) ◽  
pp. 49
Author(s):  
Mira Diyanty ◽  
Meina Wulansari Yusniar
Keyword(s):  
Corporate Governance ◽  
Linear Regression ◽  
Multiple Linear Regression ◽  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Governance Mechanism ◽  
Good Corporate Governance ◽  
The Board Of Directors

<em><span lang="EN-US">The purpose of this study was to analyze the effect of the Good Corporate Governance mechanism on the board of commissioners, the board of directors, the proportion of independent commissioners, the audit committee, CAR on ROA. This study also uses a purposive sampling method for sampling. The analysis test used is multiple linear regression analysis. The population used by companies listed on the Indonesia Stock Exchange in the period 2011 - 2013 and which meet the sample selection criteria. The sample used was 25 companies. Data is collected through secondary data collection in the form of the company's annual report for the period 2011 - 2013 which is published on the Indonesia Stock Exchange. The research hypothesis was tested by multiple linear regression which had met the testing of classical assumptions. The results of the analysis show that the board of commissioners, the proportion of independent commissioners, audit committees, CAR does not significantly influence ROA while the board of directors has a positive and significant effect on ROA.</span></em>

scholarly journals The relationship between earnings quality, control mechanisms of corporate governance, and future stock price returns. The case of the Netherlands

2013 ◽  
Vol 10 (4) ◽  
pp. 379-389
Author(s):  
Elisabetta Basilico ◽  
Hugh Grove
Keyword(s):  
Corporate Governance ◽  
The Netherlands ◽  
Stock Price ◽  
Earnings Quality ◽  
Audit Committees ◽  
Control Mechanisms ◽  
Public Companies ◽  
Corporate Governance Mechanisms ◽  
New Research ◽  
The Relationship

This article extends prior research on the relation between earnings quality (assessed by accruals) and future stock price returns and adds new research on the relationships between direct and indirect corporate governance mechanisms of control with accruals and future stock price returns. We study public companies of the Netherlands and find the presence of mispricing associated with very high and very low accruals. We also find evidence that direct corporate governance control mechanisms, such as the existence of separate, independent, and skilled audit committees, are related to higher earnings quality and higher future stock price returns.

Corporate Governance in Islamic Banks

2021 ◽  
pp. 322-337
Author(s):  
Sami Ben Mim ◽  
Yosra Mbarki
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Supervisory Board ◽  
Islamic Banks ◽  
Governance Mechanism ◽  
Governance Mechanisms ◽  
Transmission Channels ◽  
Corporate Governance Mechanisms ◽  
The Board Of Directors ◽  
Corporate Governance Mechanism

This study investigates the efficiency of the Shariah supervisory board as a corporate governance mechanism in Islamic banks. The authors mainly seek to examine the effect of the Shariah board's composition (size and academic background of its members) on the performance of Islamic banks. They also try to highlight the transmission channels explaining this effect, and compare the efficiency of the Shariah board with that of traditional corporate governance mechanisms, namely the board of directors. The empirical investigation is based on a sample of 72 Islamic banks from 19 countries. Estimation results suggest that the Shariah board positively affects the Islamic banks performance through the number of Islamic Shariah scholars. This effect is mainly due to the size and cost transmission channels. These results are robust to different performance measures. On the other hand, results show that the board of directors' size produces a positive effect on a bank's performance, offering evidence for complementarity between traditional and Islamic governance mechanisms.

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