scholarly journals Corporate Boards, Audit Committees and Voluntary Disclosure: A Case Analysis on Bangladeshi Listed Companies

2021 ◽  
Vol 6 (2) ◽  
pp. 153-155
Author(s):  
Fakrul Ahmed
Keyword(s):  
Voluntary Disclosure ◽  
Explanatory Power ◽  
Audit Committees ◽  
Develop Model ◽  
External Control ◽  
Stock Exchanges ◽  
Corporate Boards ◽  
Agency Conflicts ◽  
Corporate Disclosure ◽  
Release Of Information

The study tries to find the interaction of corporate disclosure and governance within the organization, focused stakeholders, and shareholders representation with internal information in the board. The paper investigates seven governance variables as the willful release of information proxy concentrated on organizational structure and functioning. Multiple regression has been performed to identify the explanatory power of the variables. The results are very much similar and consistent with the understanding that both internal and external control exist simultaneously to affect the shareholders' control to restrict each other. The results suggest that the size of the board does not affect the external control of voluntary disclosure. This paper can help to exhibit the relationship between proper and transparent corporate governance and required disclosure to reduce agency conflicts. This paper focused on the existing companies listed in the stock exchanges to identify and develop model to improve the agency setting. The paper should be interesting for the regulators, stakeholders, and practitioners to construct consistent policies with calls for more disclosure requirements in this agency setting.

Does Corporate Governance Prevent Corporate Debacles?

2019 ◽  
pp. 215-232
Author(s):  
Haseeb Ur Rahman ◽  
Saeeda Rehman ◽  
Muhammad Zahid ◽  
Amin Jan ◽  
Alam Rehman
Keyword(s):  
Corporate Governance ◽  
First Century ◽  
Audit Committees ◽  
Empirical Literature ◽  
Independent Directors ◽  
Stock Exchanges ◽  
Corporate Boards ◽  
The World ◽  
Leadership Structure ◽  
The Usa

The renowned agency theory and thus most of the corporate governance (CG) regulations stress upon the independence of corporate boards and its various committees such as nomination and audit, among others. However, the review of the specific previous empirical literature does not fully support this public myth by unveiling that independence-related CG practices such as separate leadership structure, the majority of independent directors on the board, and independence of the nomination and audit committees could not escape the demise of Enron, WorldCom, and Global Crossing in the USA. Also, these CG practices could not avoid the fiasco of the Linear Corporation, Kenmark, and Sime Darby in Malaysia at the dawn of the twenty-first century. The review infers that despite a pivotal role, it is not only the independence of the board and its committees that avoid corporate failures. Overall, this review has important insights for governments, regulators, policymakers, corporate boards, stock exchanges, and shareholders of both the developed and developing countries around the world.

scholarly journals Spatial Dynamics between Firm Sales and Environmental Responsibility: The Mediating Role of Corporate Innovation

2021 ◽  
Vol 13 (4) ◽  
pp. 1684 ◽  
Author(s):  
Jiafeng Gu
Keyword(s):  
Environmental Performance ◽  
Explanatory Power ◽  
Spatial Dynamics ◽  
Spillover Effect ◽  
External Control ◽  
Environmental Responsibility ◽  
Systematic Research ◽  
Corporate Environmental Responsibility ◽  
Mediating Role ◽  
Corporate Innovation

Corporate environmental responsibility (CER) is increasingly gaining interest among researchers and practitioners. Despite this extensive interest, systematic research regarding the effect of sales on environmental performance remains scarce. In this study, an empirical analysis on a sample of 909 Chinese listed companies from 2010 to 2016 showed that sales positively impact environmental performance. This study also showed that corporate innovation mediates the relationship between sales and environmental performance. Furthermore, this study showed that environmental performance has a positive spatial spillover effect. Enterprises appear to promote their own environmental performance as a response to a rise in the environmental performance of their neighbors. The external control theory of organization has important reference significance and explanatory power for CER behavior in emerging economies.

Audit Committee Incentives and the Resolution of Detected Misstatements

2015 ◽  
Vol 34 (4) ◽  
pp. 109-137 ◽  
Author(s):  
Marsha B. Keune ◽  
Karla M. Johnstone
Keyword(s):  
Audit Committee ◽  
Positive Association ◽  
Stock Option ◽  
Economic Incentives ◽  
Data Availability ◽  
Audit Committees ◽  
Analyst Forecast ◽  
Agency Conflicts ◽  
Option Compensation ◽  
Stock Option Compensation

SUMMARY We investigate the role of audit committee economic incentives in judgments involving the resolution of detected misstatements. The results reveal a positive association between audit committee short-term stock option compensation and the likelihood that managers are allowed to waive income-decreasing misstatements that, if corrected, would have caused the company to miss its analyst forecast. Complementary results reveal a positive association between the audit committee long-term stock option compensation and the likelihood that managers are allowed to waive income-increasing misstatements when the company reports just missing, meeting, or beating its analyst forecast. These findings illustrate agency conflicts that can arise when compensating audit committees with options. We obtain these results while controlling for CEO option compensation and audit committee characteristics, along with indicators of corporate governance, auditor incentives, and company characteristics. Data Availability: Data used in the study are available from public sources

Board characteristics and the choice between sustainability and integrated reporting: a European analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Laura Girella ◽  
Stefano Zambon ◽  
Paola Rossi
Keyword(s):  
Sustainable Development ◽  
Voluntary Disclosure ◽  
Sustainability Reporting ◽  
Board Independence ◽  
Corporate Boards ◽  
Integrated Reporting ◽  
Content Type ◽  
Moderating Variables ◽  
Board Characteristics ◽  
Sustainability Report

Purpose The role that the board can have in influencing the adoption of non-financial reporting (NFR) by companies is a topic that has raised interest in the recent literature. However, very few have so far been said on the logic that underpins the selection by corporate boards of a particular model (sustainability and/or integrated). This study aims to examine if and to what extent board characteristics may influence the choice of companies to voluntarily publish a sustainability report, an integrated report or both of them, and if moderating variables, relating to incentives towards corporate transparency, may have an influence. Both of these types of reporting tools are in fact aimed at improving company disclosure towards sustainable development. Design/methodology/approach Through a multi-nomial regression analysis, this study tests the assumptions in a sample of companies listed on the Eurostoxx600 that adopt integrated or sustainability reporting or both of them for the period 2015–2018 for a total of 2,103 firm-years observations. Findings The results reveal that sustainability reporting is associated with board independence only, whilst the adoption of integrated reporting is influenced by board size and board independence. The same two variables influence also those companies that jointly adopt both sustainability and an integrated report. This confirms that integrated reporting requires more competencies and monitoring to be adopted. Furthermore, the results provide evidence that information asymmetry and financial constraints influence the decision of companies to publish the integrated report, sustainability report or both, whilst growth opportunities do not. Hence, moderating variables can have a role in explaining this association, and especially those that are related to the firm’s incentives related to the provision of financial capital by investors. Research limitations/implications This study contributes to the literature in three ways. First, it proposes an incremental analysis of the relationship between board characteristics and voluntary disclosure of integrated reporting, considering the effects of moderating variables on this association. Second, the above relationship is examined in a comparative way vis-à-vis the adoption of sustainability reporting. Third, it demonstrates that the analysis of these reporting tools can benefit from an understanding that relies on both agency and stakeholder theories, that have to be conceived somehow complementary. In terms of limitations, this study is exclusively focussed on larger European listed firms, and therefore, the findings may not be valid for small and medium firms and for companies operating outside Europe. Practical implications This study provides useful insights for managers and policymakers to better understand which are the characteristics of the board composition that can best encourage a company to pursue a reporting strategy based on sustainable development. This results to be particularly relevant and timely in the European context if the authors take into consideration the developments of the European Parliament and Commission towards the launch of a new legislative proposal on sustainable corporate governance in 2021. Originality/value The study contributes to the existing literature in two ways. First, it offers a unique perspective on the direct and indirect effects of board characteristics on the adoption of integrated and/or sustainability reports by examining it in a comparative perspective. Second, it further demonstrates that the analysis of NFR and especially integrated reporting might benefit from the adoption of multiple conceptual lenses, in this case, agency and stakeholder theories.

An Empirical Research of Impact of the Merger of Pan-European and Oslo Stock Exchanges on the Efficiency of Tobacco Securities Market

2021 ◽  
Vol 7 (4) ◽  
pp. 568-587
Author(s):  
Dongpeng Xu ◽  
Deqin Lin ◽  
Dan Zhang
Keyword(s):  
Market Efficiency ◽  
Stock Exchange ◽  
Explanatory Power ◽  
Secondary Market ◽  
Securities Market ◽  
Stock Exchanges ◽  
Market Returns ◽  
Market Theory ◽  
Efficient Market Theory ◽  
The Impact

Objectives: Europe is one of the important markets for traditional tobacco. We analyzed the impact of exchange consolidation on securities market efficiency, so as to enable tobacco enterprises to improve the financing efficiency of the stock market and carry out transformation and upgrading. Methods: In this work. We’re based on efficient market theory, the merger of Pan-European Stock Exchange and Oslo Stock Exchange, Norway in June 2019 is analyzed through empirical analysis. The logarithmic returns of 25 listed companies in the Oslo Stock Exchange OBX-25 index were analyzed using OLSN Chow and KPSS tests. Results: It is found that of 72% of securities, the explanatory power of market returns for securities returns is increased, which shows significant improvement in market efficiency. The merger of stock exchanges can indeed improve the market efficiency. In addition, through the KPSS test, it is found that the merger of stock exchanges can improve the market efficiency. As time goes by, however, the validity decreases. Conclusion: The improvement of the efficiency of the securities market will be conducive to the financing efficiency of listed tobacco companies in the secondary market, promote the transformation of enterprises, and contribute to the tobacco control and the health of the population in Europe.

Determinants of IFRS compliance in Africa: analysis of stakeholder attributes

2019 ◽  
Vol 27 (4) ◽  
pp. 573-599 ◽  
Author(s):  
Vincent Tawiah ◽  
Pran Boolaky
Keyword(s):  
Empirical Evidence ◽  
Financial Reporting ◽  
Audit Committee ◽  
Audit Committees ◽  
Corporate Boards ◽  
African Countries ◽  
Significant Positive Association ◽  
Content Type ◽  
High Compliance ◽  
Chartered Accountants

Purpose This paper aims to examine the drivers of companies’ compliance with International Financial Reporting Standards (IFRS) using the stakeholder salience theory. Design/methodology/approach The authors have used panel data from 205 companies to examine the IFRS compliance level across 13 African countries. This study has also established the relationship between stakeholders’ attributes and firms’ compliance with IFRS. Findings On IFRS compliance, the authors found that the average compliance score among the companies over the period was 73.09 per cent, with a minimum score of 62.86 per cent and a maximum of 85.61 per cent. The authors found a significant positive association between audit committee competence and compliance, as well as among chartered accountants on board. There is less compliance with the latest standards, such as IFRS 3, 7 and 13. Also, IAS 17, 19, 36 and 37 are problematic across the sample. The authors also found that compliance has been increasing over the years. Practical implications For companies, this study provides empirical evidence on the importance of having chartered accountants’ corporate boards, as well as competent audit committees involved in ensuring high compliance with IFRS. The findings also provide valuable information for professional accounting organizations on the role of their members (chartered accountants) in the effectiveness of IFRS compliance. Originality/value This study complements and updates prior studies on IFRS compliance with findings from Africa, a region that has been neglected in the literature. It provides empirical evidence on the importance of chartered accountants sitting on corporate boards in ensuring high compliance with IFRS.

scholarly journals Does corporate investment efficiency affect corporate disclosure practices?

2020 ◽  
Vol 21 (2) ◽  
pp. 309-327
Author(s):  
Noha Elberry ◽  
Khaled Hussainey
Keyword(s):  
Voluntary Disclosure ◽  
Corporate Investment ◽  
Good News ◽  
Investment Efficiency ◽  
Corporate Disclosure ◽  
Content Type ◽  
High Level ◽  
The Impact ◽  
Practical Implications ◽  
Disclosure Practice

PurposeThe authors examine the impact of corporate investment efficiency on corporate voluntary disclosure for a sample of UK non-financial companies.Design/methodology/approachThe authors use a sample of FTSE All-Share firms for the period of 2007–2014. Disclosure scores are collected from Corporate Financial Information Environment (CFIE). They follow Biddle et al. (2009) and Chen et al. (2011) in measuring corporate investment efficiency.FindingsThe authors find that high level of performance-related disclosure is associated with high level of corporate investment efficiency, while high level of good news information is associated with low level of corporate investment efficiency. They also find evidence on a bidirectional relation between disclosure and corporate investment efficiency.Research limitations/implicationsThe authors’ findings would be of importance to stakeholders and corporations. Stakeholders' investment decisions could be facilitated by understanding the disclosures provided by their firms and how these firms' performance is presented. Corporations become aware of the language which must be used to signal their performance.Practical implicationsCorporations become aware of the language which must be used in their disclosures. As firms may reflect their efficient investments but not in the form of good news in order to avoid revealing their competitive advantage to competitors.Originality/valueThis paper adds to disclosure studies by introducing a new variable, corporate investment efficiency, as a determinant of corporate disclosure practice.

The extent of voluntary corporate disclosure in the Egyptian Stock Exchange

2017 ◽  
Vol 7 (2) ◽  
pp. 266-291 ◽  
Author(s):  
Hany Kamel ◽  
Emad Awadallah
Keyword(s):  
Earnings Management ◽  
Voluntary Disclosure ◽  
Management Practices ◽  
Developing Economies ◽  
Stock Exchange ◽  
Related Factor ◽  
Corporate Disclosure ◽  
Content Type ◽  
The Relationship ◽  
Egyptian Stock Exchange

Purpose The purpose of this paper is to investigate the current level of voluntary corporate disclosure in the Egyptian Stock Exchange. In addition, it explores the factors influencing the extensiveness of voluntary disclosure and examines the potential consequences of such disclosure in regards to the phenomenon of earnings management. Design/methodology/approach A relevant disclosure index to the Egyptian context was adopted to assess the level of voluntary disclosure in the 2010 annual reports of the most actively traded companies listed on the Egyptian Stock Exchange. The relationship between the extent of voluntary disclosure and each specific-related factor was examined using unranked and ranked OLS regression models. Meanwhile, a system of simultaneous equations was performed using a two-stage least squares regression model in order to investigate whether companies with higher levels of voluntary disclosure exhibit lower levels of earnings management practices. Findings The results indicate that the level of voluntary disclosure is positively responsive to specific corporate attributes, namely, the type of auditing firm and the two industries of Healthcare and Pharmaceuticals, and Chemicals. However, no significant indications were found that firm size, leverage, profitability and liquidity are important determinants of corporate disclosure. Also, the results show no evidence to support the prior anticipation that a higher level of voluntary disclosure reduces the ability of managers to make use of earnings management. On the contrary, it was found that leverage and the tendency of firms to avoid reporting declines in earnings are the main drivers of the phenomenon of earnings management in Egypt. Practical implications This paper has important implications for both domestic and overseas investors in Egypt as well as the regulatory authorities in the developing economies. Originality/value The main contribution of this paper is its focus on the extent of voluntary disclosure in a developing country such as Egypt, which has a high potential for economic growth in the near future. Besides, this paper is the first to examine the relationship between the level of voluntary disclosure and the phenomenon of earnings management in the Egyptian context.

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