scholarly journals Audit committees in listed companies: an international comparison of composition and meetings

2008 ◽  
Vol 5 (3) ◽  
pp. 75-85
Author(s):  
Esmée Van Gansbeke ◽  
Patricia Everaert ◽  
Gerrit Sarens ◽  
Ignace De Beelde
Keyword(s):  
Corporate Governance ◽  
The Netherlands ◽  
Audit Committee ◽  
Listed Companies ◽  
Audit Committees ◽  
Annual Reports ◽  
Internal Auditor ◽  
Corporate Governance Codes ◽  
The Usa ◽  
The Uk

This paper compares the number of audit committee (AC) members, meeting frequency and the presence of internal auditors at AC meetings of listed companies according to their country of domicile. We consider the USA, the UK, the Netherlands, France and Belgium. Hypotheses are developed based on differences in corporate governance codes. Data are gathered from annual reports of 100 listed companies in these countries. Our results indicate fewer AC members in the Netherlands, and a higher frequency of AC meetings in the UK and Belgium, countries where corporate governance codes do not proscribe a minimum number of meetings. The presence of an internal auditor at AC meetings was, on average, highest for firms listed in the USA.

A theoretical and econometric evaluation of corporate governance and capital structure in JSE-listed companies

2019 ◽  
Vol 19 (5) ◽  
pp. 1063-1081 ◽  
Author(s):  
Navitha Singh Sewpersadh
Keyword(s):  
Corporate Governance ◽  
Capital Structure ◽  
Audit Committee ◽  
Firm Growth ◽  
Listed Companies ◽  
Annual Reports ◽  
Ceo Duality ◽  
Content Type ◽  
Governance Practices ◽  
Director Ownership

PurposeA vital resource for attracting investments and boosting economic growth is compliance with corporate-governance practices. To achieve firm growth, businesses often rely on leverage as a source of finance, which has tax-saving benefits but could attract financial distress costs. In this context, this study aims to examine the relationship between corporate governance and the use of debt financing in Johannesburg Stock Exchange (JSE)-listed companies.Design/methodology/approachThis study used a six-year period to examine 713 annual reports in an unbalanced panel of 130 JSE-listed companies from 2011 to 2016. The empirical econometric methodology used was the two-step difference generalised method of moments estimation model, which is robust in controlling endogeneity and potential bi-directional causality between leverage and corporate governance.FindingsThis study illustrated that corporate governance practices and firm-specific variables such as profitability, firm size and firm age have a significant influence on the capital structure decisions of JSE-listed firms. This study found support for four out of the six hypotheses. CEO duality and director ownership are positively correlated with leverage, whereas audit committee independence and board size are negatively correlated with leverage. This study also found contraventions of board independence, audit committee independence and CEO duality. The technology sector was the least compliant, with only 40 per cent of their boards being independent. The consumer-services sector had the maximum presence of CEO duality (7 per cent). The industrial sector had the highest average director ownership (18 per cent). The heath-care sector had 28 per cent of their audit committees in contravention of the independence rule.Practical implicationsA useful analysis of the theoretical frameworks used by academic writers are provided. This study revealed the governance practices contravened by the relevant sectors, as well as the associations between corporate governance and leverage.Originality/valueThe study contributes to the literature on capital structure and corporate governance by an emerging economy such as South Africa (SA) which has not been explored. This study’s results have key implications for policy-makers, practitioners, investors and regulatory authorities. This study informs these constituencies about a set of governance attributes that are catalysts and/or inhibitors of leverage.

scholarly journals The Effect of Corporate Governance on Tax Avoidance: Evidence from Indonesia

2020 ◽  
Vol 2 (4) ◽  
pp. 66-85
Author(s):  
Feren Frisca Tania ◽  
. Mukhlasin
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Audit Committee ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Secondary Data ◽  
Audit Committees ◽  
Annual Reports ◽  
Manufacturing Companies ◽  
Negative Effect

This study aims to analyze the effect of the effectiveness of internal control, independent commissioners, the expertise of the board of commissioners, the number of audit committees, and the expertise of the audit committee on tax avoidance in manufacturing companies listed in Indonesia Stock Exchange period 2016-2018. This research is expected to be a material consideration for companies in making decisions related to taxation. The deductive approach used in this study by developing hypotheses based on relevant theories and findings of previous studies. Agency theory is used to see the effect of corporate governance on tax avoidance. The data collection method uses secondary data from the company's financial statements and annual reports according to specific criteria. Data analysis was performed by descriptive statistics and multiple linear regression. The results of the regression analysis prove that effectiveness of internal control and number of audit committees had a positive effect which means higher effectiveness of internal control and number of audit committees cause more tax avoidance, conversely independent commissioners and expertise of the board of commissioners had a negative effect which shows greater independent commissioners and expertise of the board of commissioners cause less tax avoidance. Another result claim that the expertise of the audit committee did not affect on tax avoidance. In contrast to previous studies, this study is more varied by combining several independent variables. JEL Codes: G34, H26.

Does corporate governance matter in determining CEO compensation in the publicly listed companies in New Zealand? An empirical investigation

2015 ◽  
Vol 41 (3) ◽  
pp. 301-327 ◽  
Author(s):  
Krishna Reddy ◽  
Sazali Abidin ◽  
Linjuan You
Keyword(s):  
Corporate Governance ◽  
New Zealand ◽  
Ownership Structure ◽  
Ceo Compensation ◽  
Listed Companies ◽  
Board Structure ◽  
Company Performance ◽  
Content Type ◽  
The Usa ◽  
The Uk

Purpose – The purpose of this paper is to investigate the relationship between Chief Executive Officers’ (CEOs) compensation and corporate governance practices of publicly listed companies in New Zealand for the period 2005-2010. Design/methodology/approach – Prior literature argues that corporate governance systems and structures are heterogeneous, that is, corporate governance mechanisms that are important tend to be specific to a country and its institutional structures. The two corporate governance mechanisms most important for monitoring CEO compensation are ownership structure and board structure. The authors use a generalised least squares regression estimation technique to examine the effect ownership structure and board structure has on CEO compensation, and examine whether ownership structure, board structure, CEO and director compensation have an effect on company performance. Findings – After controlling for size, performance, industry and year effects, the authors report that internal features rather than external features of corporate governance practices influence CEO compensation. Companies that have their CEO on the board pay them more than those who do not sit on the board, suggesting CEOs on boards have power to influence board decisions and therefore boards become less effective in monitoring CEO compensation in the New Zealand context. Companies that pay their directors more tend to reward their CEOs more as well, thus supporting the managerial entrenchment hypothesis. Research limitations/implications – The results confirm the findings reported in prior studies that institutional investors are ineffective in monitoring managerial decisions and their focus is on decisions that benefit them on a short-term basis. Practical implications – The findings indicate that although the proportion of independent directors on boards does not significantly influence CEO compensation, it does indicate that outside directors are passive and are no more effective than insiders when it comes to the oversight and supervision of CEO compensation. Originality/value – Being a small and open financial market with many small- and medium-sized listed companies, New Zealand differs from large economies such as the UK and the USA in the sense that CEOs in New Zealand tend to be closely connected to each other. As such, the relationship between pay-performance for New Zealand is found to be different from those reported for the UK and the USA. In New Zealand, the proportion of institutional and/or block shareholders is positively associated with CEO compensation and negatively associated with company performance, suggesting that it is not an effective mechanism for monitoring CEO compensation.

Effect of corporate governance attributes on IFRS compliance: evidence from a developing country

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Martin Kabwe ◽  
Erastus Mwanaumo ◽  
Henry Chalu
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Panel Data Analysis ◽  
Negative Relationship ◽  
Listed Companies ◽  
Annual Reports ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Content Type ◽  
The Relationship

Purpose This study aims to analyze the relationship between corporate governance attributes and the International Financial Reporting Standard (IFRS) compliance among Zambian listed companies. Design/methodology/approach Data was collected through content analysis of annual reports and audited financial statements of 20 Zambian listed companies for the period 2012 to 2018. This is a longitudinal study which involved panel data analysis. A Hausman test was conducted to select the model to use to run the panel regression analysis. Findings The results indicate a positive statistically insignificant relationship between board size, board independence and IFRS compliance. A statistically significant negative relationship between audit committee independence and IFRS compliance. However, there is a positive relationship between board members with accounting and auditing experience, the inclusion of women on the board and IFRS compliance. Research limitations/implications Limitation includes the narrow focus on listed companies only which cannot be generalized to other public interest and private companies in Zambia. Practical implications The study findings imply that corporate governance attributes such as the inclusion of qualified and experienced Chartered Accountants and women on the board will increase IFRS compliance. The appointment criteria of non-executive directors should be strengthened. Originality/value This is the first empirical study to analyze the relationship between IFRS compliance and corporate governance in Zambia. The study also responds to the call by the World Bank (2017) to empirically study IFRS compliance in Zambia and contributes to the scant literature in developing countries on determinants of IFRS compliance.

scholarly journals Internal and external auditors responsibilities and relationships with audit committees in two English public sector settings

2021 ◽  
Vol 18 (3, special issue) ◽  
pp. 395-409
Author(s):  
Karim Hegazy ◽  
Anne Stafford
Keyword(s):  
Public Sector ◽  
Audit Committee ◽  
Audit Committees ◽  
Institutional Setting ◽  
Structured Interviews ◽  
Internal Auditor ◽  
Loosely Coupled ◽  
Study Approach ◽  
Starting Point ◽  
The Uk

This paper assesses the job of scrutiny and oversight in public services by examining the role of the internal auditor (IA) and external auditor (EA) and their relationship with the audit committee (AC) in two distinct English public sector environments. The research uses an exploratory qualitative case study approach based on semi-structured interviews, AC meeting observations, and documentation reviews. The study acts as a starting point to examine the effectiveness of governance arrangements during a period of change in the UK public sector. The research provides evidence of good triangulation between the work of the IA, EA, and AC. Nevertheless, having close interaction between EAs and ACs and a crossing over in terms of responsibilities may lead to a conflict of interest and raises serious doubts about the independence and objectivity of the EA. This needs to be closely monitored over the coming years. Due to the diversity and wider and more complex accountability relationships and intricacies found in public sector organisations the study highlights the need to consider additional factors to the analysis of simple principal agency theory assumptions. The research further provides evidence on the existence of loosely coupled CG structures within the roles of the EA and IA within local government. This is one of the few papers which explores the IA and EA roles and their relationship with the AC in an organisational and institutional setting different from the private sector

scholarly journals The impact of corporate governance elements on environmental reporting : the case of public listed companies in Malaysia

2014 ◽  
Vol 11 (1) ◽  
pp. 75
Author(s):  
Mohd Rashdan Sallehuddin
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Listed Companies ◽  
Annual Reports ◽  
Executive Directors ◽  
Government Ownership ◽  
Environmental Reporting ◽  
Female Director ◽  
The Impact ◽  
The Relationship

The paper aims to examine the impact of the relationship between the elements of corporate governance and environmental reporting of public listed companies in Malaysia. This study adopts a cross sectional analysis by examining the 2010 annual reports of 254 public listed companies and using content analysis as the method to measure the extent of environmental reporting and compared with various corporate governance measures. Regression analysis was used to examine the relationship between Corporate Environmental Reporting (CER) and independent variables of Corporate Governance (CG) namely independent non-executive directors, audit committee composition, female director, duality, managerial and government ownership. Analysis found a significant relationship between the extents of environmental reporting with government ownership. In contrast, the extent of CER is insignificant with relation of independent non-executive directors, audit committee composition, female director, duality and managerial ownership. The results could be useful to provide evidence to regulatory bodies to look further and to identify the elements of corporate governance that will enhance the CER.

scholarly journals Corporate governance and intellectual capital disclosure. An empirical analysis of the Italian listed companies

2016 ◽  
Vol 13 (2) ◽  
pp. 187-201 ◽  
Author(s):  
Maria Assunta Baldini ◽  
Giovanni Liberatore
Keyword(s):  
Corporate Governance ◽  
Content Analysis ◽  
Empirical Analysis ◽  
Intellectual Capital ◽  
Ownership Structure ◽  
Audit Committee ◽  
Listed Companies ◽  
Annual Reports ◽  
Board Composition ◽  
Competitive Position

Intellectual capital (IC) as well as disclosure of information on IC has in recent years gained importance. IC is the key issue in strengthening a firm’s competitive position and in achieving its objectives. The purpose of this study is to investigate some determinants of the disclosure of IC in annual reports. In particular the aim of this research is to analyse the internal mechanisms of corporate governance (board composition, role duality, ownership structure, auditor type and size of audit committee), which influence the intellectual capital disclosure in corporate annual reports for a sample of all listed Italian firms at 31st December 2010. It has been used a disclosure index as a dependent variable, (ICD), and the method used to measure it is content analysis.

Audit Committee and Tax Planning Of Listed Firms: Evidence from Nigeria

2020 ◽  
Vol 11 (1) ◽  
pp. 115-115
Author(s):  
B. Tijjani ◽  
Z. Peter
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Tax Planning ◽  
Audit Committees ◽  
Annual Reports ◽  
Executive Directors ◽  
Listed Firms ◽  
Financial Firms ◽  
Financial Expertise ◽  
Negative Effect

This study investigates the effect of audit committee on tax planning of listed non-financial firms in Nigeria. It aims at finding out the audit committee structure that improves tax planning thereby reducing tax liability of the firms. Data for the study were extracted from annual reports and accounts of the sampled non-financial companies for a period of ten years (2008 – 2017). The data collected were analysed using descriptive statistics to provide summary statistics for the variables, and correlation analysis was carried out using Pearson product-moment correlation to determine the relationship between the dependent and independent variables. Regression analysis was also conducted. The study reveals that the audit committee's compositions, frequency of meetings, and financial expertise have a negative effect on tax planning of listed non-financial firms in Nigeria. In addition, profitability shows a positive and significant effect on tax planning, and leverage has a negative effect. Theoretically, the study is significant for its contribution to agency and stakeholder theories as they explain relationship between corporate governance and tax planning. The findings have implications for the various stakeholders of listed non-financial firms in Nigeria. They should be assured of tax planning for companies who have a good number of non-executive directors in audit committees, frequent meetings which are attended by members, and financial experts. Keywords: Tax planning, audit committee, corporate governance, tax expenses, non-executive directors.

scholarly journals Corporate governance, ownership, company structure and environmental disclosure: Evidence from Saudi Arabia

2015 ◽  
Vol 4 (4) ◽  
pp. 460-470 ◽  
Author(s):  
Murya Habbash
Keyword(s):  
Corporate Governance ◽  
Saudi Arabia ◽  
Audit Committee ◽  
Audit Committees ◽  
Annual Reports ◽  
Environmental Disclosure ◽  
Iso 26000 ◽  
Main Determinants ◽  
One Year

This study examines the Environmental Disclosure (ED) practices in Saudi Arabia and the potential relationship with Corporate Governance (CG) , ownership and company structure, following the application of the Saudi 2006 CG code in 2007. The study deepens the understanding of ED and its main determinants in one of the largest economies in the Middle East. A self-constructed ED checklist, based on ISO 26000, is used. We employ regression and content analyses to examine a sample of 267 annual reports covering the period 2007-2011. The analysis finds that the average ED has improved following the application of the Saudi 2006 CG code to 30%, more than double the 14.61% found by Al-Janadi et al. (2013) during 2006-2007. The analysis also finds that audit committee effectiveness, role duality, state and institutional ownerships, firm profitability, and industry sensitivity positively affect ED. However, board independence, family ownership, and firm size are found not to be significant determinants, while a negative significant correlation was found with firm leverage. The results imply that CG regulators and stakeholders should acknowledge the importance of active audit committees comprising relevant experts and independent directors, in addition to the role of state and institutional ownership in enhancing ED. The study covers a five-year period, contrary to the majority of ED studies which focus on only one year. The study helps to fill the gap in ED literature in developing countries. Finally, the study provides a recent evaluation for the Saudi CG code recently applied in 2007.

scholarly journals Corporate Governance and Risk Management: Lessons (Not) Learnt from the Financial Crisis

2021 ◽  
Vol 14 (9) ◽  
pp. 419
Author(s):  
Alessandro Gennaro ◽  
Michelle Nietlispach
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Financial Crisis ◽  
Management Practices ◽  
Management Systems ◽  
Management Approach ◽  
The Past ◽  
Corporate Governance Codes ◽  
The Usa ◽  
The Uk

The paper aims to understand if and which lessons have been learned since the financial crisis of 2007–2008, highlighting the main deficiencies which still affect the corporate governance and risk management systems more than a decade after. A survey was performed by collecting the answers to 15 questions about corporate governance and risk management practices, given by a representative sample of 200 finance professionals (100 from the USA, 50 from Italy, 50 from the UK). The survey allows saying that corporate governance codes and risk management approach, even though improved and implemented over the past decade, still present problems in terms of principles or application. The results provide insights into how corporate governance issues are addressed and how financial institutions and regulators learn and adapt from a crisis. The paper also gives new perspectives on corporate governance, indicating where regulators need to focus on to rethink the governance mechanisms.

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