scholarly journals Do the Attributes of Audit Committee Explain Non-Performing Loans? Evidence from an Emerging Economy

2021 ◽  
Vol 16 (3) ◽  
pp. 327-357
Author(s):  
Arifa Akter ◽  
◽  
Mohammad Kamal Hossain ◽  
Mohammad Jahangir Alam ◽  
Md. Shajul Islam ◽  
...  
Keyword(s):  
Panel Data ◽  
Financial Literacy ◽  
Audit Committee ◽  
Banking Sector ◽  
The Other ◽  
Committee Chairman ◽  
Data Set ◽  
Robust Standard Error ◽  
Regulatory Bodies

This study examined whether various attributes of the audit committee of listed banks in Bangladesh explain the level of non-performing loans (NPLs). This study used a panel data set comprising all 30 listed banks with 250 bank-year observations for the period 2013–2017. It employed the random-effects GLS regression model with cluster robust standard error and AR (1) disturbance to examine the effect of several audit committee attributes on NPLs. We found that holding audit committee meetings frequently and a higher number of independent members in the audit committee facilitate to reduce NPLs. We, however, find no explicit evidence that the other attributes of the audit committee examined (audit committee size, financial experience and financial literacy of the audit committee members, professional qualifications of the audit committee Chairman) contribute in reducing NPLs. The findings will be useful for policymakers of the banking sector in Bangladesh and the relevant regulatory bodies in enabling them to understand the role of the various attributes of the audit committee in the incidence of NPLs. Keywords: attributes, audit committee, non-performing loans (NPLs), listed banks, Bangladesh

Audit Committee Effectiveness Among Malaysian Listed Companies

2020 ◽  
Author(s):  
Shamsul Nahar Abdullah ◽  
Ku Nor Izah Ku Ismail
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Listed Companies ◽  
The Other ◽  
Interactive Effects ◽  
Committee Chairman ◽  
Kuala Lumpur ◽  
Political Costs ◽  
Leadership Structure

This study investigates further the previous paper by Shamsul Nahar and Al-Murisi (1997) by examining the interactive effects of the variables in that paper and introducing other variables associated with corporate governance and political costs. The present study postulated that percentage of external directors on audit committee interacted with the presence of an accountant on audit committee and with the number of years an audit committee in existence, respectively, to influence audit committee effectiveness. The study also posited that the interaction of the presence of an accountant on audit committee and the number of years an audit committee in existence positively and significantly influenced audit committee effectiveness. Addition. ally, the roles of leadership structure, audit committee chairman, and a firm's size on audit committee effectiveness were also investigated. Using a multiple regression from a sample consisting the Kuala Lumpur Stock Exchange listed companies, results showed that only a firm's size significantly influenced audit committee effectiveness in the predicted direction. Other variables, on the other hand, did not show any significant influence on audit committee effectiveness.  

scholarly journals Can Emotional Intelligence Help in Reducing Auditor’s Engagement in Quality Threatening Behaviours?

2018 ◽  
Vol 2 (2) ◽  
pp. 70-73
Author(s):  
Muhammad Aamir ◽  
Siti Zaleha Abdul Rasid ◽  
Shathees Baskaran ◽  
Fadillah Binti Ismail ◽  
Faiza Manzoor
Keyword(s):  
Emotional Intelligence ◽  
Job Performance ◽  
Audit Quality ◽  
The Other ◽  
Work Practices ◽  
Accounting Profession ◽  
Regulatory Bodies ◽  
Emotionally Intelligent

Quality Threatening Behaviours (QTBs) in auditing are associated with reduced audit quality and are under the focus of researchers and practitioners for the last two decades following the major corporate failures around the globe.  QTBs are a constant threat for audit profession and lawmakers, regulatory bodies, practitioners and researchers are striving to reduce auditors’ engagement in these undesirable behaviours.  Existing literature advocates that emotional intelligence (EI) meaningfully affects workplace behaviours. Wong and Law (2002) affirm that emotional intelligence is linked to job performance.  Emotionally intelligent individuals respond to negative issues related to work in a better way (Greenidge, Devonish, & Alleyne, 2014).  On the other hand, individuals who score low on emotional intelligence face problems in regulating emotions instigated by negative work practices reacting in a manner that can be detrimental for the organization and its members (Quebbeman and Rozell, 2002).  Emotional intelligence is equally important for individuals in the accounting profession (Daff, de Lange, & Jackling, 2012).  Akers and Porter (2003) proclaim that “EI skills are critical for the success of the accounting profession” (p. 65).  Auditing is a frantic occupation that causes pressure on auditors (Fisher, 2001) that fetch damaging outcomes.  Negative behaviours of auditors are caused by different pressures and lessen the quality of audit, emotional intelligence ability can help auditors in avoiding indulgence in these behaviours (Yang, Brink, & Wier, 2018). Grounding on the role of emotional intelligence at work across different contexts and its ability to negatively affect harmful workplace behaviours, it can be inferred that emotional intelligence can reduce auditors engagement in quality threatening audit behaviours.

scholarly journals Kualitas Audit Didasarkan Pada Isu-Isu Keahlian Dan Profesionalisme Auditor

Manajerial ◽  
2017 ◽  
Vol 9 (2) ◽  
pp. 83
Author(s):  
Mohammad Ali Sartono
Keyword(s):  
Audit Committee ◽  
Audit Quality ◽  
Audit Process ◽  
Audit Firm ◽  
Number Of Factors ◽  
Regulatory Bodies ◽  
Personal Qualities ◽  
Potential Damage

<p align="justify">This research will examine the views from stakeholders on the quality of audits based on issues of expertise and professionalism of auditors, audits commercialization  and transparency the audit. This study focuses attention on the response from implementation of audits quality regulations according to the company’s audits, the audit committee and investors. The focus of this research is an analysis of research by identifying four major drivers of audit quality, namely: culture in an audit firm; skills and personal qualities of audit partners and staff; the effectiveness of the audit process; the reliability and usefulness of audit reporting. In this study also identifies a number of factors that affect the quality of audit beyond the control of the auditor, namely: the approach taken by management; the contribution made by the audit committee; role of shareholders and commentators; role as a driver of audit quality litigation; regulatory approaches; the pressure caused by the acceleration reports. The results showed that the regulatory bodies and professionals involved in the management and improvement of audit quality to make efforts to improve the tarnished image, increase its legitimacy and reputation as well as the dominance of responses raised concerns about potential damage to the profession.</p>

scholarly journals The impact of intellectual capital on the profitability of commercial banks in Serbia

2018 ◽  
Vol 63 (216) ◽  
pp. 85-109 ◽  
Author(s):  
Sinisa Radic
Keyword(s):  
Panel Data ◽  
Intellectual Capital ◽  
Commercial Banks ◽  
Banking Sector ◽  
Value Added ◽  
The Other ◽  
Capital Efficiency ◽  
The Subject ◽  
The Republic ◽  
The Impact

The subject of the research in this paper is the impact of intellectual capital efficiency on the profitability of commercial banks in the Republic of Serbia. The efficiency of commercial banks? intellectual capital was measured by the created value added in the observed period, using the Value Added Intellectual Coefficient methodology (VAIC). Empirical analysis was carried out using econometric analysis of panel data for 27 banks that were operating in the banking sector of the Republic of Serbia in the period 2008-2016. The results of the analysis show that the significance of the impact of the efficient use of intellectual capital on the profitability of banks operating in Serbia depends on the selected profitability measure. When ROA is chosen as an indicator of profitability the bank?s level of indebtedness determines the sign of this influence, so at higher levels of indebtedness efficient use of intellectual capital negatively affects the profitability of the bank. On the other hand, in this case the size of the bank does not significantly affect the dependence of the bank?s profitability on the efficient use of its intellectual capital. If ROE is a measure of the profitability of banks the efficient use of intellectual capital has no significant impact on banks? profitability.

scholarly journals Dividend Changes and Future Profitability: Evidence from the Turkish Stock Market

2016 ◽  
Vol 8 (3) ◽  
pp. 196 ◽  
Author(s):  
Eyup Kadioglu ◽  
Nurcan Ocal
Keyword(s):  
Panel Data ◽  
The Other ◽  
Strongly Correlated ◽  
Data Set ◽  
Future Earnings ◽  
Panel Data Regression ◽  
Data Regression ◽  
Dividend Signaling ◽  
The Future ◽  
Dividend Announcements

<p>Most of the previous studies on dividends in Turkey have focused on the effects of dividend announcements. There has been no study investigating the relation between dividend changes and the future profitability of firms. This study investigates this relation by using both ordinary and panel data regression on a data set consisting of 1,239 dividend payouts from 123 companies listed in Borsa Istanbul during the period 2004-2014. This study is unable to demonstrate that dividend changes are related to changes in future earnings. No evidence is found to support the dividend signaling theory, which claims that dividends serve as indicators of the future profitability of firms. On the other hand, future profitability is found to be strongly correlated with profitability in the previous year.</p>

PERAN MODAL SOSIAL SEBAGAI MEDIATOR LITERASI KEUANGAN DAN INKLUSI KEUANGAN PADA USIA PRODUKTIF DI KABUPATEN GUNUNGKIDUL

2020 ◽  
Vol 15 (1) ◽  
pp. 27
Author(s):  
Elizabeth Fiesta Clara SB ◽  
Astrie Krisnawati
Keyword(s):  
Social Capital ◽  
Financial Literacy ◽  
Poverty Alleviation ◽  
Sampling Technique ◽  
Financial Inclusion ◽  
The Other ◽  
Probability Sampling ◽  
The Relationship ◽  
Determinant Factor

ABSTRACT Financial inclusion is proven to decrease poverty and social gap if it is done maximally. Gunungkidul regency as one of all regency with the poorest population in Daerah Istimewa Yogyakarta. The determinant factor in successful financial inclusion is financial literacy toward the population themselves. Furthermore, the other factor to accelerate poverty alleviation is the role of the productive population.This research aims to discover the role of social capital as the financial literacy and financial inclusion mediator of Gunungkidul’s Regency productive population. With social capital is expected to be a mediator in improving literacy and inclusion finance.The population in this research is 729.364 productive ages of Gunungkidul’s Regency population and the sample was taken by non-probability sampling technique which produced 424 samples. This study adopted Sobel test also Kenny and Baron method to examine the effect of mediaton of social capital in the relationship between financial literasion and financial inclusion. The result of this study found that social capital proved to partially mediate the association beteen financial literacy and financial inclusion of productivity age in Gunungkidul Regency. Keywords: Poverty, Financial Literacy, Financial Inclusion, Social Capital, Partially Mediation, Gunungkidul Regency. ABSTRAK Gunungkidul termasuk Kabupaten dengan jumlah warga miskin Yogyakarta. Inklusi keuangan dipercaya dapat menurukan kemiskinan apabila dilakukan secara maksmial serta dapat mengurangi kesenjangan sosial. Salah satu faktor penentu keberhasilan inklusi keuangan adalah adanya literasi keuangan pada masyarakat itu sendiri, faktor lain yang dapat mempercepat pengentasan kemiskinan adalah peran masyarakat produktif. Penelitian ini bertujuan untuk mengetahui peran modal sosial sebagai mediator literasi keuangan dan inklusi keuangan pada usia produktif di Kabupaten Gunungkidul yang diharapkan dapat meningkatkan literasi keuangan dan inklusi keuangan itu sendiri. Populasi penelitian ini adalah masyarakat Kabupaten Gunungkidul berusia produktif sebesar 729.364 jiwa. Pengambilan sampel dengan teknik non-probability sampling menghasilkan sampel sejumlah 424 jiwa. Penelitian mengadopsi dan menggunakan tes Sobel serta metode Baron dan Kenny dalam pengujian pengaruh mediasi modal sosial pada hubungan literasi keuangan dan inklusi keuangan. Hasil penelitian menemukan bahwa modal sosial terbukti secara parsial memediasi hubungan antara literasi keuangan dan inklusi keuangan pada usia produktif di Kabupaten Gunungkidul. Kata kunci: Usia Produktif, Literasi Keuangan, Inklusi Keuangan, Modal Sosial, Kabupaten Gunungkidul.

Role of Agility in the Banking Sector in Competitive Globalization Era

2020 ◽  
pp. 317-334
Author(s):  
Kagan Cenk Mızrak ◽  
Filiz Mızrak
Keyword(s):  
Banking Sector ◽  
Organization Structure ◽  
Transformation Process ◽  
Vital Role ◽  
The Other ◽  
Competitive Market ◽  
Market Conditions ◽  
Other Hand ◽  
Key Points

In today's rapidly changing market conditions, organizations need to be agile to gain a competitive market advantage. This chapter details the key points required for agility. Although there has been ongoing discussion whether finance and banking sector can be agile due to rigid structures, processes, and regulators, the chapter aims to prove the vital role of agility in banking sector with the case of Garanti Bank. Thanks to the case, the strategies both on the basis organization structure and marketing level that banks need to apply in agile transformation process, have been exemplified. As a result of the case, the importance of flexibility, speed, monitoring the latest trend, making quick decisions, and being customer-focused in the banking sector is stressed. On the other hand, banks are suggested to engage all their units, shareholders together with their customers in the process to have a more smooth translation.

Industry or Instrument?

2021 ◽  
pp. 50-70
Author(s):  
Angela Garcia Calvo
Keyword(s):  
Banking Sector ◽  
High Potential ◽  
The Other ◽  
Global Banking ◽  
Upgrading Strategies ◽  
Late Industrializing

The chapter analyzes Spain’s and Korea’s upgrading strategies from the perspective of large banks. The chapter shows that Spain’s and Korea’s approaches were based on two different interpretations of the banking sector. One considered banking as an industry in its own right with high potential for upgrading. The other saw banking as an input for manufacturing. The chapter shows that these two views led to the emergence of a globally competitive banking sector in Spain, but prevented a similar outcome in Korea. The chapter comprises five sections. After the introduction, section 3.2 characterizes the structure of the banking sectorin late industrializing economies and the changes in global banking since the 1980s. Sections 3.3 and 3.4 analyze the role of banking in Spain’s and Korea’s models and how these roles affected the trajectory of Spanish and Korean banks. Section 3.5 takes stock, concludes, and sets the stage for the next chapter.

Democracy and the Transnational Dimensions of Low-Level Conflict and State Repression

2021 ◽  
Author(s):  
Martin Roessler ◽  
Patrick Zwerschke ◽  
Jonathan Old
Keyword(s):  
Simple Model ◽  
Panel Data ◽  
Empirical Evidence ◽  
The Other ◽  
State Repression ◽  
Low Level ◽  
Different Types ◽  
Opposing Effects ◽  
Conflict Intensity

Abstract This paper examines the transnational dimensions of low-level conflict and state repression. In this regard, special emphasis is placed on the role of political regimes. Drawing on a simple model, we argue that democracy has opposing effects on conflict intensity. On one hand, democracy satisfies demand for political participation and thus reduces conflict potential, while, on the other hand, we highlight that domestic democracy may spur dissatisfaction and conflict abroad, which, in turn, may induce conflict spillovers. As a result, the net effect of democracy on low-level conflict and state repression is ambiguous and depends on the level of democracy in the neighborhood: We predict that democracy is more pacifying in democratic environments and may spur conflict in autocratic environments. By the symmetry of the model, we also predict that democratic environments are more pacifying for democratic countries and may spur conflict in autocracies. Empirical evidence using panel data on different types of low-level conflict and state repression for 160 countries in the period from 1950 to 2011 supports these hypotheses. Additionally, two case studies illustrate the mechanisms of our model.

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