scholarly journals The Relationship Between Audit Committee Effectiveness and the Level of Corporate Risk Disclosure: The Relevance of Pre-and Post-Mccg 2012

2020 ◽  
Vol 19 (1) ◽  
Author(s):  
Sarliza Saari ◽  
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Inverse Relationship ◽  
Audit Committees ◽  
Unexpected Result ◽  
Risk Disclosure ◽  
Financial Report ◽  
Code Of Corporate Governance ◽  
Corporate Risk ◽  
The Relationship

This study examined the relationship between audit committee effectiveness and the level of corporate risk disclosure amongst Malaysian listed companies pre- and post-Malaysian Code of Corporate Governance 2012. Content analysis was employed. A total of 122 firm-year observations was examined in order to measure the extent of risk disclosure against audit committee effectiveness. The findings reveal only audit committee size and diligence are significant in explaining the variations in corporate risk disclosure for pre- and post-MCCG 2012. This indicates that audit committee size does matter in assisting the revelation of corporate risk disclosure. It also signifies that audit committees are responsible and discharge their duties accordingly with reference to the higher number of audit committee meetings. An unexpected result was also found in this study where an inverse relationship was detected between audit committee independence and corporate risk disclosure. The result is contrary to the requirement of MCCG 2012 that emphasizes the importance of an independent director under its Principle 3.5. Further, the result also shows that the audit committee effectiveness have increasing in the post-MCCG 2012 period compared to pre-MCCG 2012 in determining the extent of risk disclosure of the sampled firms. KEYWORDS: Corporate risk disclosure, audit committee characteristics, financial report, corporate governance

Audit committee characteristics and the moderating effect of Malaysian code of corporate governance on IPO liquidity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amal Mohammed Al-Masawa ◽  
Rasidah Mohd-Rashid ◽  
Hamdan Amer Al-Jaifi ◽  
Shaker Dahan Al-Duais
Keyword(s):  
Corporate Governance ◽  
Initial Public Offerings ◽  
Audit Committee ◽  
Ordinary Least Squares ◽  
Moderating Effect ◽  
Least Squares Regression ◽  
Content Type ◽  
Code Of Corporate Governance ◽  
The Impact ◽  
The Relationship

Purpose This study aims to investigate the link between audit committee characteristics and the liquidity of initial public offerings (IPOs) in Malaysia, which is an emerging economy in Southeast Asia. Another purpose of this study is to examine the moderating effect of the revised Malaysian code of corporate governance (MCCG) on the link between audit committee characteristics and IPO liquidity. Design/methodology/approach The final sample consists of 304 Malaysian IPOs listed in 2002–2017. This study uses ordinary least squares regression method to analyse the data. To confirm this study’s findings, a hierarchical or four-stage regression analysis is used to compare the t-values of the main and moderate regression models. Findings The findings show that audit committee characteristics (size and director independence) have a positive and significant relationship with IPO liquidity. Also, the revised MCCG positively moderates the relationship between audit committee characteristics and IPO liquidity. Research limitations/implications This study’s findings indicate that companies with higher audit committee independence have a more effective monitoring mechanism that mitigates information asymmetry, thus reducing adverse selection issues during share trading. Practical implications Policymakers could use the results of this study in developing policies for IPO liquidity improvements. Additionally, the findings are useful for traders and investors in their investment decision-making. For companies, the findings highlight the crucial role of the audit committee as part of the control system that monitors corporate governance. Originality/value To the authors’ knowledge, this work is a pioneering study in the context of a developing country, specifically Malaysia that investigates the impact of audit committee characteristics on IPO liquidity. Previously, the link between corporate governance and IPO liquidity had not been investigated in Malaysia. This study also contributes to the IPO literature by providing empirical evidence regarding the moderating effect of the revised MCCG on the relationship between audit committee characteristics and IPO liquidity.

Audit Committee Characteristics and Earnings Quality

2020 ◽  
pp. 23-49
Author(s):  
Fatima Albedal ◽  
Allam Mohammed Hamdan ◽  
Qasim Zureigat
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Earnings Quality ◽  
Listed Companies ◽  
Independent Variables ◽  
Pooled Data ◽  
Data Regression ◽  
Code Of Corporate Governance ◽  
The Relationship

This chapter investigates the relationship between the audit committee and earnings quality of listed companies in Bahrain Bourse and to examine whether those companies comply with the obligatory code of corporate governance. The sample of this study includes 40 companies listed in Bahrain Bourse for the period 2013-2017. The model of the study tested the relationship between the independent variables of audit committee characteristics and the dependent variable of earnings quality using pooled data regression. The findings of the study showed that the Bahraini listed companies comply and follow the code of corporate governance and some audit committee characteristics have an impact on earnings quality.

scholarly journals Corporate risk disclosures: Influence of institutional shareholders and audit committee

2013 ◽  
Vol 10 (4) ◽  
pp. 341-354 ◽  
Author(s):  
Xuan Zhang ◽  
Dennis Taylor ◽  
Wen Qu ◽  
Judith Oliver
Keyword(s):  
Audit Committee ◽  
Audit Committees ◽  
Annual Reports ◽  
Risk Disclosure ◽  
Proprietary Information ◽  
High Resource ◽  
Institutional Shareholders ◽  
Risk Disclosures ◽  
Corporate Risk ◽  
Made In

This study investigates the association between corporate risk disclosures and institutional shareholders and audit committees. Using a sample of 66 Australian listed companies, risk disclosures made in 2009 annual reports are analysed. Findings reveal that there is no significant relationship between dedicated-type institutional block shareholders and risk disclosure, which it is argued is consistent with a proprietary information perspective. A positive relationship however is found between transient-type institutional block shareholders and risk disclosures. This result is consistent with a principal that wields limited monitoring resources while achieving high resource dependency over management. Significant positive relationships are found between audit committee independence and risk disclosures.

Audit committee’s attributes, overlapping memberships on the audit committee and corporate risk disclosure: Evidence from Jordan

Accounting ◽  
2021 ◽  
pp. 423-440
Author(s):  
Malek Hamed Alshirah ◽  
Ahmad Farhan Alshira’h ◽  
Abdalwali Lutfi
Keyword(s):  
Audit Committee ◽  
Stock Exchange ◽  
Random Effect ◽  
Random Effect Model ◽  
Audit Committees ◽  
Annual Reports ◽  
Risk Disclosure ◽  
Committee Membership ◽  
Corporate Risk ◽  
Level Of Risk

This paper aims to contribute to the literature by examining whether audit committees' attributes affect risk disclosure practiced by Jordanian listed companies. Selecting a sample of 94 Jordanian companies listed on Amman Stock Exchange, the authors carried out a manual content analysis on annual reports to determine the level of risk disclosure. Random effect model was employed in the analysis. Empirical results show that the audit committee size had a positive effect on the level of risk disclosure. However, there was no evidence that the frequency of the audit committee meetings, expertise or overlapping of the audit committee membership were significantly related to the risk disclosure. The findings are important for standard setters to improve their comprehension about the influence of audit committee in disclosing risk information and reconsider the effective monitoring role played by audit committee.

Preliminary evidence on the relationship between corporate governance attributes and audit committee functionality in Egypt: beyond checking the box

2014 ◽  
Vol 14 (2) ◽  
pp. 197-210 ◽  
Author(s):  
Ahmed Abdel-Meguid ◽  
Khaled Samaha ◽  
Khaled Dahawy
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Preliminary Evidence ◽  
Audit Committees ◽  
Board Independence ◽  
Regulatory Requirements ◽  
Content Type ◽  
The Relationship ◽  
Egyptian Stock Exchange

Purpose – This exploratory study aims to provide preliminary evidence regarding the non-audit committee corporate governance determinants of audit committee functionality. Design/methodology/approach – The study is based on archival accounting, corporate governance data, and interviews of subjects of the top 100 companies listed on the Egyptian Stock Exchange (EGX100). A logistic regression is used to identify the non-audit committee governance attributes that affect the likelihood of of having a functional audit committee. Findings – Board size and board independence, (CEO-chairman duality) are positively (negatively) related to audit committee functionality, suggesting complementary governance relations. On the other hand, the authors document a negative relation between auditor type (Big4) and audit committee functionality indicating a substitutive governance effect. Originality/value – To the best of the authors' knowledge, this is the first study that explores the actual functioning of audit committees in Egypt beyond mere regulatory requirements. The study highlights the importance of assuring that the “spirit” of corporate governance laws and regulations is adhered to rather than the mere compliance with their “letter”.

scholarly journals Board Features and Timely Disclosure of Audited Accounts of Listed Deposit Money Banks in Nigeria

2021 ◽  
Vol 4 (1) ◽  
pp. 1-13
Author(s):  
Luka Mailafia ◽  
Jibril Adamu
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Secondary Data ◽  
Financial Statements ◽  
Board Independence ◽  
Board Size ◽  
Financial Report ◽  
Correlational Research ◽  
Corporate Governance Practice ◽  
The Relationship

Objective–This study examines the moderating effect of company age on the relationship between board features on timely disclosure of audited financial statements. Specifically it tests the effects of board size, proportionate audit committee size, board independence on timely disclosure of the banks under study; and assess the influence of age as a moderator of board size, proportionate audit committee size, and board independence respectively as they affect timely disclosure of the listed deposit money banks in Nigeria. Design/methodology–The sample of 10 banks out of 15 listed deposit money banks in Nigeria were used. Secondary data was gathered from the sampled banks’ annual accounts and reports. Correlational research design was used to examine the relationship between the studied variables. Descriptive statistics, correlation, and hierarchical multiple regression analyses were eventually carried. Results –This study finds that board size and proportionate audit committee size are negatively related to timely disclosure of listed deposit money banks in Nigeria with the later exerting significant effect on the dependent variable. Furthermore, company age moderates both corporate governance and timely disclosure. Therefore, this study recommends that companies should strategize ways to improve corporate governance practice in order to inspire confidence on investors by timely disclosure of the financial report. Contribution – The study has been able to provide evidence on age as a moderator to some corporate governance determinants of timeliness disclosure peculiar to Nigerian Deposit Money Banks. It has also addressed the measurement issue regarding audit committee size, introduced a new term known as ‘proportionate audit committee size’ as a variable.

How auditor locality affects audit report timeliness

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ameneh Bazrafshan ◽  
Simin Dehghani Madise
Keyword(s):  
Corporate Governance ◽  
Empirical Evidence ◽  
Audit Committee ◽  
Stock Exchange ◽  
Audit Committees ◽  
Audit Report ◽  
Content Type ◽  
Auditor Quality ◽  
The Relationship ◽  
Linear Regressions

Purpose Despite extensive research on the determinates of audit report timeliness, there is limited empirical evidence on the effect of auditor locality on audit report timeliness. Therefore, this study aims to examine the relationship between auditor locality and audit report timeliness. Furthermore, this study investigates the moderating roles of audit committee, corporate governance and auditor quality in this relationship. Design/methodology/approach In this study, the information of 157 companies listed on the Tehran Stock Exchange during the period 2013–2019 has been collected. Moreover, multivariate linear regressions were used to test the hypotheses. Findings Findings show that in general, there is no significant relationship between auditor locality and audit report timeliness. However, empirical evidence suggests that in companies with specialized audit committees, strong corporate governance and high-quality auditors, auditor locality improves audit report timeliness. Originality/value Overall, the results indicate that there are some circumstances in which auditor locality affects the audit report timeliness. Specifically, the association of auditor locality and audit report timeliness is conditional to audit committee, corporate governance and auditor quality.

scholarly journals Corporate Social Responsbility Sebagai Pemoderasi Pengaruh Komponen Good Corporate Governance Terhadap Profitabilitas

2019 ◽  
pp. 119
Author(s):  
Made Kusuma Rahardi Putra ◽  
I Ketut Alit Suardana
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Audit Committee ◽  
Institutional Ownership ◽  
Audit Committees ◽  
Social Responsiveness ◽  
Good Corporate Governance ◽  
Corporate Social ◽  
The Relationship

The purpose of this study was to determine the effect of the component of good corporate governance on profitability by moderating corporate social responsibility. The location of this research is the State-Owned Enterprises (BUMN) which are listed on the Indonesia Stock Exchange during the period 2013-2015. The number of observation samples over a period of 5 years is 50 with the sampling method used is non probability sampling with a purposive sampling technique. The analysis technique used is Moderated Regression Analysis (MRA). Based on the results of the study shows that institutional ownership and independent board of commissioners have a positive and significant effect on profitability while the audit committee has no effect on profitability. The moderating corporate social responsibility variable weakens the relationship of institutional ownership to profitability, and corporate social responsibility is not a moderating variable on the relationship between independent commissioners and audit committees on profitability. Keywords: Good corporate governance, corporate social responsiveness, profitability

scholarly journals Dynamics of audit lag − board of directors and audit committees’ effect

2015 ◽  
Vol 12 (3) ◽  
pp. 281-294 ◽  
Author(s):  
Rabih Nehme ◽  
Guy Assaker ◽  
Rita Khalife
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Financial Institutions ◽  
Audit Committee ◽  
Audit Committees ◽  
Governance Mechanism ◽  
Audit Report ◽  
Corporate Governance Mechanisms ◽  
External Governance ◽  
The Relationship

Audit procedures are considered to be an external governance mechanism tool used by shareholders from an agency theory perspective. The empirical model is constructed to assess the theoretical and statistical relationship between audit lag and corporate governance characteristics over a period of four years (for FTSE 350 companies excluding financial institutions between 2007 and 2010). This paper studies the effect of corporate governance mechanisms, board of directors and audit committee, on audit report lag. The importance of this research comes from the few studies conducted regarding the relationship between corporate governance and audit report lag. It is crucial to understand the determinants of audit lag in order to minimize it as much as possible and accordingly generate timely information.

scholarly journals An empirical study: characteristics of business entities and corporate governance on risk disclosure practices

2019 ◽  
Vol 20 ◽  
pp. 25-49
Author(s):  
Arfan Amrin
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Risk Disclosure ◽  
External Auditors ◽  
Risk Monitoring ◽  
Business Entities ◽  
Corporate Risk ◽  
The Impact

This paper investigates the association between the characteristics of business entities, corporate governance, and practices of risk disclosure. Notably, the objective of this paper is to examine the impact of the characteristics of business entities and corporate governance on risk disclosure in non-financial companies. The samples used in this study included 312 non-financial companies registered on the Indonesia Stock Exchange. The hypothesis testing in this paper using regression analysis. The results of this paper indicate that the size of the audit committee (SAC), the availability of risk monitoring or risk management committees (RMC) and the quality of external auditors (AUD) are significantly associated with corporate risk disclosure practices (CRD). These empirical results show that the presence of risk monitoring committee, the quality of external auditors, and the size of the audit committee are the main factors determining the extent of risk disclosure, especially for non-financial companies listed on the Indonesia Stock Exchange. This paper also shows that the age of business entities has a negative impact on corporate risk disclosure practices.

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