scholarly journals Preventing financial statement frauds through better corporate governance

2017 ◽  
Vol 14 (3) ◽  
pp. 271-285 ◽  
Author(s):  
Barbara Sveva Magnanelli ◽  
Luca Pirolo ◽  
Luigi Nasta
Keyword(s):  
Corporate Governance ◽  
Multinomial Logistic Regression ◽  
Negative Relationship ◽  
Agency Problems ◽  
Financial Statement ◽  
Financial Statement Fraud ◽  
Governance System ◽  
Cross Sectional ◽  
The Impact

Acting within the agency theory theoretical framework, the paper focuses on the role of the corporate governance as a system to monitor and predict the fraud occurrence and magnitude. Specifically, the study examines the impact of the quality of the corporate governance of the firms, for which a fraud was detected, on the fraud occurrence and magnitude. We posit that fraudulent behaviours, by those who can take advantage of information asymmetry and gain personal benefits from them, can occur when strong agency problems emerge and a weak governance exists. Thus, the financial statement fraud can be seen as the result of high agency problems and high conflicts of interests not solved by the company. Starting from a sample of 101 listed companies, for which a fraud was detected, using a principal component analysis, we develop a corporate governance index, which measures the quality of the governance system of the firms. To test the hypothesis, we run a multinomial logistic regression on a cross-sectional analysis, controlling the results with a matched sample of firms that did not experienced any fraud. Empirical evidences seem to confirm the existence of a negative relationship between the quality of the corporate governance system of a firm and both the financial statement fraud occurrence and magnitude, indicating the governance system of the firm as a fraud deterrent for any amount of financial statement fraud. These findings are even stronger for firms characterized by the presence of a blockholder. This study contributes to the governance literature by focusing on the corporate governance quality and its impact on financial statement frauds. Moreover, the analysis suggests that a good level of governance can help companies to mitigate the agency problems and to detect fraudulent behaviours, thus our empirical evidence can guide regulators in developing regulations to avoid the fraud occurrence.

scholarly journals Corporate Governance Role in Improving the Financial Information Quality within the Saudi Electricity Company: دور حوكمة الشركات في تحسين جودة المعلومات المحاسبة في الشركة السعودية للكهرباء

2020 ◽  
Vol 4 (1) ◽  
Author(s):  
Arwa Hassan Baabbad
Keyword(s):  
Corporate Governance ◽  
Significant Relationship ◽  
Information Quality ◽  
Survey Methodology ◽  
Governance System ◽  
And Performance ◽  
The Right ◽  
Descriptive Survey ◽  
The Impact

The present study aimed to find out the role of corporate governance in improving the quality of information in the Saudi Electricity Company. The researcher used the descriptive survey methodology. As to achieve the study objectives، the researcher utilized the questionnaire tool، in which the study sample (50) members of SEC distributed into employees، managers and decision makers. The study concluded to many results، among of which are: there is a statistically significant relationship between the availability of corporate governance system and performance improvement of the Saudi Electricity Company، there is a statistically significant relationship between corporate governance and appropriateness in improving the performance of the Saudi Electricity Company، it was also found that there is a statistically significant relationship between corporate governance and optimal disclosure in improving the performance of Saudi Electricity Company. The study also found that there is a statistically significant relationship between corporate governance and the right timing in improving the performance of the Saudi Electricity Company. The study suggested number of recommendations، among of which are: the importance of the shareholding companies to comply with the corporate governance regulations considering the interest of companies and their shareholders and all other parties benefiting from the financial statements، attempting to take advantage of the multiple benefits of corporate governance and expand its application in the various economic units in Saudi Arabia، conduct studies on companies that applies the requirement of the Corporate Governance Regulations، and the impact of the application of corporate governance on the shares of these units to find out the relationship between the quality of accounting information in light of the application of corporate governance and the stock market from another angle، imposing deterrent penalties concerning the Corporate Governance Regulations on companies that did not apply this regulation.

scholarly journals Olympus Corporation Financial Statement Fraud Case Study: The Role That National Culture Plays On Detecting And Deterring Fraud

2014 ◽  
Vol 10 (2) ◽  
pp. 175-184 ◽  
Author(s):  
Anita R. Morgan ◽  
Cori Burnside
Keyword(s):  
Corporate Governance ◽  
National Culture ◽  
Corporate Culture ◽  
Fraud Detection ◽  
Financial Statement ◽  
Japanese Culture ◽  
Financial Statement Fraud ◽  
The Impact ◽  
Insight Into

Recent cases provide insight into the role that an unethical corporate culture plays in financial statement fraud. The case of financial statement fraud in Olympus Corporation, a Japanese firm, provides the opportunity to examine how national culture plays a role in corporate governance and fraud detection. This case study focuses on the impact of Japanese culture on the corporate culture of The Olympus Corporation, and how that corporate culture resulted in financial statement fraud.

scholarly journals The Impact of Audit Committee and Internal Audit towards Financial Statement Quality: External Audit and Corporate Governance as Intervening Variables

2018 ◽  
Vol 7 (4.34) ◽  
pp. 208
Author(s):  
Islahuzzaman . ◽  
Syafdinal . ◽  
Syakieb Arsalan ◽  
Maya Lisa Aryanti
Keyword(s):  
Corporate Governance ◽  
Theoretical Model ◽  
Audit Committee ◽  
Internal Audit ◽  
Financial Statements ◽  
Financial Statement ◽  
External Audit ◽  
The Impact ◽  
Intervening Variables

A financial statement is a crucial matter since its quality is declining. This research developed and tested a theoretical model which identified factors directly or indirectly contributing to the financial statement quality, namely audit committee and internal audit; meanwhile, external audit and corporate governance were considered as antecedent factors having impact on the report. The objective of the research is to gain insight on such factors. The objective of the research is to gain insights on factors that affect such reports. The findings showed consistent evidence supporting the theoretical model. They also showed how AC and IA simultaneously and partially impacted the quality of financial statements (QFS). AC and IA directly or indirectly affect the quality of the financial statement. They also have indirect effects through CG and EA in enhancing the quality to 77%. 

scholarly journals The Quality of Life and Psychosocial Implications of Cancer-Related Lower-Extremity Lymphedema: A Systematic Review of the Literature

2020 ◽  
Vol 9 (10) ◽  
pp. 3200 ◽  
Author(s):  
Catharine Bowman ◽  
Katherine-Ann Piedalue ◽  
Mohamad Baydoun ◽  
Linda E. Carlson
Keyword(s):  
Quality Of Life ◽  
Systematic Review ◽  
Lower Extremity ◽  
Health Care Professionals ◽  
Negative Relationship ◽  
Well Being ◽  
Observational Research ◽  
Cross Sectional ◽  
The Impact

Lower-extremity lymphedema (LEL) is a progressive, lifelong complication of cancer that places a substantial burden upon cancer survivors’ quality of life (QOL) and psychosocial well-being. Despite its prevalence, cancer-related LEL is inconsistently diagnosed, treated, and poorly recognized by health care professionals. The purpose of this systematic review was to summarize and appraise the quantitative literature evaluating the impact of cancer-related LEL on patients’ psychosocial well-being and QOL. Three databases (PubMed, PROQuest, and Scopus) were searched for observational research articles published before May 1st, 2020. Twenty-one articles were eligible (cross-sectional (n = 16), prospective cohort designs (n = 3), and retrospective cohort designs (n = 2)). The majority of studies reported a negative relationship between cancer-related LEL and global QOL and/or one or more psychosocial domains including (1) physical and functional; (2) psycho-emotional; (3) social, relational and financial. A greater number of LEL symptoms and higher LEL severity were associated with poorer QOL. Although the evidence to date suggests a negative relationship between cancer-related LEL and patients’ QOL and psychosocial well-being, there is a substantial need for longitudinal analyses to examine the directionality and temporality of this effect in order to inform cancer survivorship care modelling and improve patient outcomes after cancer.

scholarly journals The Impact of Corporate Governance on the Cost of Equity: Empirical Evidence from Pakistani Listed Companies

2009 ◽  
Vol 14 (1) ◽  
pp. 139-171 ◽  
Author(s):  
Syed Zulfiqar Ali Shah ◽  
Safdar Ali Butt
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Negative Relationship ◽  
Listed Companies ◽  
Fixed Effect Model ◽  
Ordinary Least Squares ◽  
Cost Of Equity ◽  
The Cost ◽  
The Impact

This study examines the impact of the quality of corporate governance, as measured by a specially constructed corporate governance index, on the expected cost of equity calculated using the capital asset pricing model (CAPM) approach. A total of 114 listed companies were investigated to analyze the relationship between the two variables for the period 2003 to 2007. The quality of corporate governance was measured by assigning weights to a set of related variables, although these variables were also considered individually. We used descriptive statistics, a correlation matrix, a simple ordinary least squares (OLS) approach, and fixed effect model to test the panel data collected. We found a negative relationship between managerial ownership and board size with the cost of equity, and a positive relationship between board independence, audit committee independence, and corporate governance with the cost of equity. These results could be due to the transition phase through which Pakistani companies are passing after the promulgation of the Code of Corporate Governance in 2002.

Did corporate governance mechanisms affect earnings management? Further evidence from GCC Islamic banks

2017 ◽  
Vol 10 (1) ◽  
pp. 2-23 ◽  
Author(s):  
Mohamed Chakib Kolsi ◽  
Rihab Grassa
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Negative Relationship ◽  
Governance Mechanisms ◽  
Loan Loss ◽  
Content Type ◽  
Loan Loss Provision ◽  
Corporate Governance Mechanisms ◽  
The Impact

Purpose The aim of this paper is to examine the impact of corporate governance mechanisms on earnings management practice for a sample of Gulf Cooperation Council (GCC) Islamic banks (IBs) using a new model of earnings management. Design/methodology/approach First, the authors estimate discretionary accruals based on loan loss provisions discretionary loan loss provision (DLLP) using the procedure derived from Jones’ (1991) original model. Second, the authors run a multivariate regression model to check the linkage between corporate governance characteristics and discretionary loan loss provision. Finally, the authors use an additional sensitivity check analysis to assess whether the results are robust to the estimation procedure and to other exogenous factors. Findings Using as sample of 26 IBs pertaining to the GCC region with a total of 223 firm-year observations and a nine-year period (2004-2012), the results are conclusive and show that first, IBs with large Shariah Board size manage less DLLP. Secondly, Accounting and Auditing Organization for Islamic Financial Institutions membership positively impacts earnings management through DLLP in IBs. Third, there is a negative relationship between boards of director’s independence the extent to which IBs manage DLLP. Fourth, the existence of block holders positively affects earnings management by IBs. Fifth, there is a negative relationship between audit committee meetings and DLLP. Finally, institutional ownership and bank size have no effect on earnings management through DLLPs. Research limitations/implications In this research, the authors do not take into account all governance factors that are supposed to impact earnings management in IBs. Future research should explore the impact of additional IBs governance structures including chief executive officer bonus, experience, gender and the extent to which IBs use real earnings management with Murabaha, Mudaraba and Musharaka transactions. Practical implications The paper is a very useful source of information that may provide relevant guidelines in helping the future development of corporate governance of IBs. In addition, the findings could prove to be useful for regulators because they are responsible for the acceptable level of corporate governance standards. Thus, they must consider strengthening governance mechanisms either through new legislation or stronger enforcement where earnings management is of such magnitude to that serious impedes information transparency and financial reporting quality of IBs. Originality/value This study associates the corporate governance characteristics with earnings management by IBs. The study contributes to the growing body of literature on earnings management and corporate governance in IBs. It should be useful to researchers, regulators, investors, analysts and creditors as well as other players in the capital markets, as it presents a new and important aspect that needs to be accounted for when assessing the quality of IBs’ accounting information in GCC countries.

The impact of the use of a footrest on the quality of chest compressions. A prospective, randomized, cross-sectional study

2018 ◽  
Vol 31 (3) ◽  
Author(s):  
Jolanta Majer ◽  
Sandra Pyda ◽  
Jerzy Robert Ladny ◽  
Antonio Rodriguez-Nunez ◽  
Lukasz Szarpak
Keyword(s):  
Cross Sectional Study ◽  
Sectional Study ◽  
Chest Compressions ◽  
Cross Sectional ◽  
The Impact

Relationship between Code of Corporate Governance and Corporate Financial Performance (An Empirical Study of Food Companies Listed on KSE)

GIS Business ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 01-09
Author(s):  
Asma Rafique Chughtai ◽  
Afifa Naseer ◽  
Asma Hassan
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Securities And Exchange Commission ◽  
Executive Directors ◽  
Agency Conflicts ◽  
Cross Sectional ◽  
Return On Equity ◽  
Governance Practices ◽  
Code Of Corporate Governance ◽  
The Impact

The crucial role that implementation of Code of Corporate Governance plays on protecting the rights of minorities, shareholders, local as well as foreign investors cannot be denied. Companies all over the world are required to implement their respective Code of Corporate Governance for avoiding agency conflicts between companies management and stakeholders and for assuring transparency in accountability. This paper aims at exploring the impact of implementation of corporate governance practices (designed by Securities and Exchange Commission of Pakistan) have on the financial position of companies. For explanatory variables of the study, composition of the board as per the Code of Corporate Governance that comprises of presence of independent, executive and non-executive directors has been taken into consideration. Return on equity has been taken as an indicator of firms profitability i.e. the dependent variable. For this study, companies listed on food producing sector of Karachi Stock Exchange have been screened for excogitation of the relationship. It is an empirical research based on nine years data from 2007–2015. Using Hausman Test for selecting the data analysis technique between Fixed or Random, Fixed Cross Sectional Panel Analysis has been used for analysis of the data collected. Findings indicate that presence of independent, executive and non-executive directors as per the code requirements levies a significant impact on the profitability of companies indicated by return on equity. It is, thus concluded that companies should ensure compliance with code of governance practices to reduce not only the agency issues but also to increase their profitability.

Correlation of Altmetric Attention Scores with Citations in Major Pharmacy Journals (Preprint)

2018 ◽  
Author(s):  
Dave L Dixon ◽  
William L Baker
Keyword(s):  
Citation Count ◽  
Cross Sectional Study ◽  
Scientific Output ◽  
Cross Sectional ◽  
Promotion And Tenure ◽  
Article Type ◽  
Key Factor ◽  
Number Of Citations ◽  
The Impact

BACKGROUND The impact and quality of a faculty members publications is a key factor in promotion and tenure decisions and career advancement. Traditional measures, including citation counts and journal impact factor, have notable limitations. Since 2010, alternative metrics have been proposed as another means of assessing the impact and quality of scholarly work. The Altmetric Attention Score is an objective score frequently used to determine the immediate reach of a published work across the web, including news outlets, blogs, social media, and more. Several studies evaluating the correlation between the Altmetric Attention Score and number of citations have found mixed results and may be discipline-specific. OBJECTIVE To determine the correlation between higher Altmetric Attention Scores and citation count for journal articles published in major pharmacy journals. METHODS This cross-sectional study evaluated articles from major pharmacy journals ranked in the top 10% according to the Altmetric Attention Score. Sources of attention that determined the Altmetric Attention Score were obtained, as well each articles open access status, article type, study design, and topic. Correlation between journal characteristics, including the Altmetric Attention Score and number of citations, was assessed using the Spearman’s correlation test. A Kruskal-Wallis 1-way analysis of variance (ANOVA) was used to compare the Altmetric Attention Scores between journals. RESULTS Six major pharmacy journals were identified. A total of 1,376 articles were published in 2017 and 137 of these represented the top 10% with the highest Altmetric Attention Scores. The median Altmetric Attention Score was 19 (IQR 15-28). Twitter and Mendeley were the most common sources of attention. Over half (56.2%) of the articles were original investigations and 49.8% were either cross-sectional, qualitative, or cohort studies. No significant correlation was found between the Altmetric Attention Score and citation count (rs=0.07, P = 0.485). Mendeley was the only attention source that correlated with the number of citations (rs=0.486, P<0.001). The median Altmetric Attention Score varied widely between each journal (P<0.001). CONCLUSIONS The overall median Altmetric Attention score of 19 suggests articles published in major pharmacy journals are near the top 5% of all scientific output. However, we found no correlation between the Altmetric Attention Score and number of citations for articles published in major pharmacy journals in the year 2017.

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