scholarly journals Board composition and audit fee: Evidence from Russia

2011 ◽  
Vol 8 (2-5) ◽  
pp. 551-565
Author(s):  
Maria Prokofieva ◽  
Balachandran Muniandy
Keyword(s):  
Capital Market ◽  
Audit Fees ◽  
Independent Directors ◽  
Board Composition ◽  
Corporate Boards ◽  
Corporate Code ◽  
Russian Government ◽  
Audit Fee ◽  
Governance Practices

In the recent years the Russian Government has undertaken serious steps to improve corporate governance practices by introducing the Corporate Code of Governance (CCG) and strengthening the role of corporate boards to monitor top management performance. This paper investigates whether these measures have stimulated positive changes by increasing the demand for higher quality audit. We test our hypotheses using 147 non-listed companies to examine whether board composition influences audit fee in the Russian capital market. Our findings support the demand-side perspective of audit services and suggest that audit fees are associated positively with the presence of an independent chairman, higher proportion of independent directors and State representatives on the board.

scholarly journals Determinants of Companies’ Board Composition in Emerging Markets

2021 ◽  
Vol 12 (5) ◽  
pp. 17
Author(s):  
Leticia L. N. Bellato
Keyword(s):  
Emerging Market ◽  
Gender Diversity ◽  
Developed Countries ◽  
Independent Directors ◽  
Board Composition ◽  
Corporate Boards ◽  
Count Data Models ◽  
Private Control ◽  
Women On Boards ◽  
Board Representation

This paper examines the determinants of female board representation for a sample of Brazilian listed companies for the year of 2018. Using count data models, we find that greater firm size, performance and board size lead to higher woman representation on companies’ boards. Also, that private control is associated with a lower number of women on boards. Most studies related to board composition focus on independent directors and are conducted in a developed countries’ setting. This work contributes to the extant literature in understanding what drives woman representation on corporate boards in an emerging market context and also would help to support the definition and implementation of gender diversity policies by showing possible impacts.

CEO Domination, Growth Opportunities, and their Impact on Audit Fees

2001 ◽  
Vol 16 (3) ◽  
pp. 189-208 ◽  
Author(s):  
Judy S. L. Tsui ◽  
Bikki Jaggi ◽  
Ferdinand A. Gul
Keyword(s):  
High Growth ◽  
Chief Executive ◽  
Audit Fees ◽  
Negative Association ◽  
Corporate Boards ◽  
Growth Opportunities ◽  
Audit Fee ◽  
Monitoring Mechanism ◽  
Growth Firms ◽  
The Relationship

This study examines the relationship between a firm's internal monitoring mechanism and its impact on the audit fee. The first hypothesis investigates whether firms with independent corporate boards (chief executive officer and chairman being separate individuals) provide a more effective internal monitoring mechanism and are thus associated with lower control risk, resulting in lower audit effort and fees as compared to nonindependent, CEO-dominated boards. The second hypothesis examines whether the effectiveness of the internal monitoring mechanism provided by independent corporate boards is independent of the firms' growth opportunities. High-growth firms are by nature more difficult to monitor due to the existence of discretionary investments and measurement problems associated with future assets. Thus, the negative association between independent corporate boards and audit fees is expected to be affected by a firm's growth. Results using 650 observations from Hong Kong companies provide support for both hypotheses.

scholarly journals Non-financial corporations in Lebanon: Who governs? “The governance myopia”

2016 ◽  
Vol 14 (1) ◽  
pp. 84-95 ◽  
Author(s):  
Mireille Chidiac El Hajj ◽  
Richard Abou Moussa ◽  
Maha Akiki ◽  
Anthony Sassine
Keyword(s):  
Capital Market ◽  
Stock Exchange ◽  
Board Members ◽  
Exchange Market ◽  
Quality Of Information ◽  
Face To Face ◽  
Governance Practices ◽  
First Time

The purpose of this paper is to study governance practices in non-financial enterprises in Lebanon, and it is the first time that such enterprises are studied in the Lebanese context. Only three non-financial institutions are listed in the Beirut Stock Exchange (BSE), which constitute the whole population of this research. Built on Principles, Governance is based on transparency and on accurate, relevant, and timely information in order to support the Board members’ decision-making (OECD, 2015). Balanced between Jensen and Meckling’s (1976) agency theory and Donaldson and Davis’ (1991) Stewardship theory, the results of our Qualitative study showed that the main problems faced by the enterprises are not in the quality of information but rather in its selection and filtering, which opens doors to “Governance Myopia”. Face-to-face interviews showed that the primary conflict in our case is between the non-financial enterprises and the BSE, since the BSE is controlled by the enterprises and is not controlling them. The main reason of such practices come from the fear of the BSE of losing a potential position in the MENA Exchange Market, doubled with the fear of losing potential investors. All these reasons weigh heavily on the Administrators of the BSE in Lebanon, forcing them to choose the “Laisser passer” way. Referring to the soft Law when dealing with the companies, the BSE is playing the double role of a marketer and a controller, thus not willing to impose restrictions. A need for “harder laws”, for “Privatization” of the BSE, and a call to the Capital Market Authority (CMA) to put more restrictions on Corporations should be observed.

Independent Directors, Key to Good Governance

Think India ◽  
2013 ◽  
Vol 16 (3) ◽  
pp. 20-23
Author(s):  
Nailesh Rameshbhai Limbasiya
Keyword(s):  
Good Governance ◽  
Code Of Conduct ◽  
Independent Directors ◽  
Governance Mechanism ◽  
Value Addition ◽  
Corporate Structure ◽  
High Profile ◽  
Unethical Practices ◽  
Governance Practices

The collapse of high profile large corporations such as Satyam, Enron etc. while performing the governance practices has raised many issues regarding good governance mechanism. The independent directors are one of the important mechanisms for the good governance practices in an organisation. In India two-third of the companies are family owned and therefore presence of independent directors on the board is very important to protect the rights of minority investors and other stakeholders. Independent directors with independent thoughts and action may lead to a constructive value addition for the firm. The present paper discusses the importance of independent directors on the board. The paper also shows a glimpse of the current picture of corporate structure and corporate governance in India. Though the role of independent director is most important to detect and prevent the unethical practices still it fails to perform their roles in many cases. This paper identifies and explains the drivers on reasons, why independent directors still fail to perform their fiduciary roles in many cases. Finally the article concludes based on the functioning of the independent directors and challenges for having an implementable code of conduct for them. The diverse opinion of the corporate experts, government bodies, and industry apex bodies is the need of the hour to make one that is easy to implement.

An investigation of the post-privatization firms’ financial performance in Nigeria: the role of corporate governance practices

2019 ◽  
Vol 19 (3) ◽  
pp. 404-418 ◽  
Author(s):  
Ojonugwa Usman ◽  
Umoru Adejo Yakubu
Keyword(s):  
Corporate Governance ◽  
Stock Market ◽  
Financial Performance ◽  
Stock Exchange ◽  
Market Development ◽  
Board Composition ◽  
Content Type ◽  
Stock Market Development ◽  
Governance Practices

Purpose The purpose of this study is to investigate the role of corporate governance practices on the post-privatization financial performance of the firms listed on the Nigerian Stock Exchange (NSE) over the period 2005-2014. Design/methodology/approach The study uses a two-step dynamic system Generalized Method of Moments (GMM) estimation technique for 27 privatized firms by considering a wide range of controlled variables such as managerial shareholdings, board composition, debt financing and stock market development. Findings The empirical result suggests that the improvement in the firms’ financial performance is attributed to good corporate governance practices through effective board composition, debt financing (leverage) and stock market development. The result further shows no substantial evidence to support that managerial shareholding improves firms’ financial performance. Research limitations/implications Therefore, based on the empirical findings of this study, the authors recommend that the firms need to maintain the optimum board composition and the ratio of debt to share capital as well as developing the stock market to function effectively. Originality/value This study contributes to the existing literature in several ways: (1) the first time that the role of corporate governance is considered in explaining the post-privatization financial performance of firms listed on the Nigerian Stock Exchange; (2) the paper applies a two-step dynamic system GMM estimation technique, proposed by Arellano and Bover (1995) and Blundell and Bond (1998) to control for the serial correlation and heterogeneity, which remain the major weaknesses of the panel data modeling in the literature.

Board Composition and Corrective Action: Evidence from Corporate Responses to Bad Acquisition Bids

2007 ◽  
Vol 42 (3) ◽  
pp. 759-783 ◽  
Author(s):  
Donna L. Paul
Keyword(s):  
Stock Prices ◽  
Corrective Action ◽  
Board Composition ◽  
Board Independence ◽  
Corporate Boards ◽  
High Frequencies ◽  
Asset Restructuring ◽  
Acquisition Announcements ◽  
Share Value

AbstractThis study investigates the role of corporate boards following large declines in share value surrounding acquisition announcements. The results indicate that firms with independent boards are less likely to complete these value-decreasing bids, suggesting that boards influence corporate responses to information in stock prices. Board independence is also associated with unusually high frequencies of asset restructuring for bids that are completed, suggesting that independent boards promote restructuring in mergers the market believes are difficult to integrate. These results complement existing evidence on the board's exante role in averting bad outcomes by showing that independent boards intervene following value-decreasing events.

scholarly journals Corporate Board of Directors’ Attributes and Audit Fees

2021 ◽  
Vol 9 (1) ◽  
pp. 156-172
Author(s):  
Wasiu Abiodun Sanyaolu ◽  
Abiola Mukaila Tonade ◽  
Babatunde Titus Adejumo
Keyword(s):  
Board Of Directors ◽  
Boards Of Directors ◽  
Sampling Technique ◽  
Audit Fees ◽  
Corporate Boards ◽  
Method Of Moment ◽  
Corporate Board ◽  
External Audit ◽  
Ex Post ◽  
Governance Practices

Abstract This study examines the effect of corporate board of directors’ attributes on audit fees for Nigerian listed Deposit Money Banks (DBMS). The study adopts an ex post facto research design and uses data on 10 deposit money banks sampled via purposive sampling technique using data spanning from 2012 to 2018. Results based on Generalized Method of Moment show that corporate board of directors’ proxies do not significantly influence audit fees of Nigerian deposit money banks. However, firm size and profitability are found to affect external audit fee significantly. The study therefore concludes that corporate boards of directors’ attributes do not individually significantly affect audit fees in Nigerian listed Deposit Money Banks. Arising from the findings, it is recommended that corporate governance practices should be strengthened so as to aid external audit.

scholarly journals Unlocking the Role of Corporate Boards in Stimulating Corporate Governance

2019 ◽  
Vol IV (II) ◽  
pp. 350-355
Author(s):  
Muhammad Bilal ◽  
Samza Fatima ◽  
Aamir Abbas
Keyword(s):  
Corporate Governance ◽  
Good Governance ◽  
Shareholder Value ◽  
Corporate Boards ◽  
Analytical Philosophy ◽  
Inductive Approach ◽  
The Past ◽  
Governance Practices

Corporate boards have gained remarkable significance over the past few years due to the efforts of various scholars who explored the positives of corporate boards in the context of governance of companies. This paper investigates the effectiveness of corporate boards in stimulating corporate governance, generating shareholder value and examining physiognomies that affect good governance practices. The intention is to explore: how principles of corporate governance can be stimulated to be more effective and efficient; what attributes of corporate governance may influence the performance of corporate boards for satisfying the shareholder expectations. The methodology used for this paper is qualitative and employs an inductive approach along with exploratory and analytical philosophy. The findings of this paper emphasize the fair appointment process for directors and to increase the number of external directors in corporate boards; so that the significant issues of companies could be discussed properly and finalized timely.

Corporate Governance and the Capital Market in Ghana: The Stymieing Role of the State

2018 ◽  
Vol 26 (3) ◽  
pp. 285-308 ◽  
Author(s):  
Justice Srem-Sai
Keyword(s):  
Corporate Governance ◽  
Capital Market ◽  
Real Life ◽  
The State ◽  
Controlling Shareholder ◽  
Role Of The State ◽  
Governance Practices ◽  
The Capital Market

Ghana's capital market is greatly undervalued, extremely concentrated and widely divorced from the country's actual economy. Investors prefer sole proprietorships and closely held businesses, and are antipathetic towards the capital market. This article seeks to implicate the state as the main cause of this antipathy. The article will argue that this antipathy is a consequence of the repeated failure of the state-owned or state-controlled enterprises or corporations (collectively referred to as ‘SOEs’). It will, through real-life cases, also show that the failure of SOEs in Ghana is as a result of bad corporate governance practices by the state in respect of wholly state-owned corporations and, later, in corporations in which the state became a controlling shareholder. The article, further, attempts to link the economic challenges in Ghana to the failure of its SOEs.

Information Technology Capability, Internal Control Effectiveness, and Audit Fees and Delays

2014 ◽  
Vol 28 (2) ◽  
pp. 149-180 ◽  
Author(s):  
Yunhao Chen ◽  
Antoinette L. Smith ◽  
Jian Cao ◽  
Weidong Xia
Keyword(s):  
Internal Control ◽  
Risk Premium ◽  
Audit Fees ◽  
Audit Process ◽  
It Capability ◽  
Control Effectiveness ◽  
Audit Fee ◽  
Information Technology Capability ◽  
The Impact

ABSTRACT We examine the role of firm IT capability in contributing to internal control and external audit in the post-SOX environment. Specifically, we measure the effectiveness of both the overall internal control and the five components of internal control as defined by the Committee of Sponsoring Organizations of the Treadway Commission's Internal Control—Integrated Framework (COSO 1992). Our findings support the concern that accounting professionals have regarding the impact of the use of IT on business risks and controls relevant to the audit. Specifically, IT capability directly mitigates audit fee increases, but not audit delay increases, indicating high IT capability signals lower business risks associated with the use of IT and reduces the auditor's risk premium. Further, IT capability has pervasive impacts on both the effectiveness of internal control and the components of effective internal control, which in turn further restrain audit fee and audit delay increases. Overall, our results suggest that a firm's IT capability has the additional benefits of supporting the functioning of internal control and the efficiency of the audit process.

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