scholarly journals Ownership Structured Firms in Malaysia: Audit Committee Characteristics and Audit Fees

2019 ◽  
Vol 16 (2) ◽  
pp. 77
Author(s):  
Norziaton Ismail Khan ◽  
Susela Devi K. Suppiah ◽  
Wai Meng Chan
Keyword(s):  
Ownership Structure ◽  
Audit Committee ◽  
Business Performance ◽  
Family Firms ◽  
Unique Feature ◽  
Audit Fees ◽  
Managerial Ownership ◽  
Concentrated Ownership ◽  
The Government ◽  
Using Data

The political economy shaped the ownership structure of corporations in Malaysia. The rapid growth of the economy has not diluted the concentrated ownership structure in the Malaysian firms. Malaysia has its own unique feature of ownership structured firms which can be divided into politically connected (PCON) firms, institutional ownership and managerial ownership (INST&MGRL) firms, and family ownership (FAMILY) firms. The purpose of this paper is to investigate whether PCON, INST&MGR and FAMILY firms are associated with higher audit fees. This study also examines the association between audit committee characteristics IND, DIL and EXP and audit fees based on the revamped Bursa Listing Requirements in 2008, which focus on audit committee characteristics. Using data from 567 firm-year observations from years 2008 to 2010, we find that PCON firms pay higher audit fees than INST&MGRL and FAMILY firms. Further, the association between audit committee IND, DIL and EXP audit fees is positive and significant for PCON firms. Suggesting that the government intervention is expected to produce better governance and improve the firm’s business performance. This is because the government has given much attention and initiatives to ensure that these firms perform in an effective way and assist the government to improve the economic growth.

The Association between Audit Committee Characteristics and Audit Fees

2003 ◽  
Vol 22 (2) ◽  
pp. 17-32 ◽  
Author(s):  
Lawrence J. Abbott ◽  
Susan Parker ◽  
Gary F. Peters ◽  
K. Raghunandan
Keyword(s):  
Audit Committee ◽  
Audit Fees ◽  
Audit Committees ◽  
Independent Directors ◽  
Span Of Control ◽  
Big 5 ◽  
Financial Expertise ◽  
Disclosure Rules ◽  
Using Data

This study examines the association between audit committee characteristics and audit fees, using data gathered under the recent SEC fee disclosure rules. We hypothesize that audit fees will be positively associated with audit committee independence, financial expertise, and meeting frequency. We examine a sample of 492 nonregulated, Big 5-audited firms that filed proxy statements with the SEC in the period from February 5, 2001 to June 30, 2001. We find that audit committee independence (defined as an audit committee comprised entirely of outside, independent directors) and financial expertise (defined as an audit committee containing at least one member with financial expertise) are significantly, positively associated with audit fees. This is in contrast to the findings of Carcello et al. (2002a), who find that audit committee characteristics are not significant in the presence of board-related variables. Meeting frequency (defined as an audit committee that meets at least four times annually) was not associated with higher audit fees at conventional levels. This evidence is consistent with audit committees taking actions within their span of control to ensure a higher level of audit coverage.

scholarly journals PENGARUH KEPEMILIKAN MANAJERIAL, KOMITE AUDIT, DAN DERIVATIF KEUANGAN TERHADAP EFFECTIVE TAX RATE

2020 ◽  
Vol 8 (2) ◽  
Author(s):  
Yensi Yensi ◽  
Amelia Sandra
Keyword(s):  
Audit Committee ◽  
Sampling Technique ◽  
Managerial Ownership ◽  
Manufacturing Companies ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Analysis Technique ◽  
Financial Derivative ◽  
State Income ◽  
The Government

Tax for the company gives significant attention. Tax is seen as a burden that can reduce profit so the company will strive any efforts to pay tax at a lower cost. Meanwhile, the government considers tax as an important state income so that the government will draw tax as high as possible. To determine company effectiveness in managing tax, need a calculation. Measurement of effective tax planning can be done using the Effective Tax Rate. The differences ETR between companies can cause by several different factors. Therefore, this study aims to investigate several factors that influence ETR. The samples are manufacturing companies listed on the IDX period 2015-2017. The sampling technique is non-probability sampling using a purposive sampling method. This research used SPSS 20 with a quantitative analysis technique. The author uses the outlier method to improve data. There are 17 passed companies. The results of the F test indicate the independent variables simultaneously affected the dependent variable with a value of 0,000. The research showed the audit committee has a significant effect on ETR. Meanwhile, managerial ownership and financial derivative do not have a significant effect on ETR. Keywords: Effective Tax Rate, Managerial Ownership, Audit Committee, Financial Derivative

scholarly journals Compliance with Corporate Governance Best Practice. The Perspective of Ownership Structure

2019 ◽  
pp. 9-26
Author(s):  
Maria Aluchna ◽  
Emilia Tomczyk
Keyword(s):  
Corporate Governance ◽  
Ownership Structure ◽  
Audit Committee ◽  
Best Practice ◽  
Transition Economy ◽  
Independent Directors ◽  
Board Governance ◽  
Board Committees ◽  
Concentrated Ownership ◽  
Compliance Policy

The article examines compliance with corporate governance best practice in the post transition economy addressing the heterogeneity of interests of different shareholders. On the basis of the agency theory, we suggest that in the concentrated ownership environment the principal-principal conflict results in lower compliance with the corporate governance code. More specifically, since compliance with best practice requires introducing independent directors and in that sense shifts control from shareholders to the board, we hypothesize that companies characterized by concentrated ownership and the dominant position of the founder/individual investor are reluctant to comply with board governance best practice. To evaluate our hypotheses, we explore compliance with board governance best practice with respect to the presence of independent directors, formation of an audit committee and other specialized board committees (remuneration, risk, strategy). We test the link between the compliance with the code and the ownership structure. Our analysis supports the principal-principalconflict argument and shows that companies with concentrated ownership and founder control do not comply with the board governance best practice. We believe this article contributes to the existing literature twofold. Firstly, we identify the patterns of corporate governance best practice implementation in the post socialist, post transition, emerging economy and depict the dynamics of the compliance with the code guidelines. Secondly, we show that the principal-principal conflict addresses the compliance policy of listed companies and results in various approaches to corporate governance conformity.

Client Acceptance and Engagement Pricing following Auditor Resignations in Family Firms

2016 ◽  
Vol 35 (4) ◽  
pp. 137-158 ◽  
Author(s):  
Samer Khalil ◽  
Mohamad Mazboudi
Keyword(s):  
Ownership Structure ◽  
Family Firms ◽  
Audit Fees ◽  
Audit Pricing ◽  
Pricing Decisions ◽  
Big 4 ◽  
Professional Manager ◽  
Financial Restatements ◽  
The Family ◽  
Client Acceptance

SUMMARY This paper investigates whether auditors' client acceptance and pricing decisions following the resignation of the incumbent auditor in family firms are significantly different from those in non-family firms. Relying on the auditing literature (client acceptance and audit pricing) and using insights from the agency theory, we document that successor auditors incorporate a firm's ownership structure into their acceptance and pricing decisions following the resignation of the incumbent auditor. Big 4 auditors are more likely to serve as successor auditors following auditor resignations in family firms as opposed to non-family firms. The changes in audit fees following auditor resignations in family firms, however, are significantly smaller than those in non-family firms. These results hold when we account for whether a family firm is managed by a founder, a descendant, or by a professional manager, and when we use the percentage of shares held by the family members as another proxy for family ownership. Additional analysis further demonstrates that the likelihood of financial restatements in family firms in the post-resignation period are significantly lower than those in non-family firms. Overall, our findings suggest that Big 4 auditors perceive family firms from which the incumbent auditors resigned as being less risky than their non-family counterparts.

Auditor Choice and Audit Fees in Family Firms: Evidence from the S&P 1500

2013 ◽  
Vol 32 (4) ◽  
pp. 71-93 ◽  
Author(s):  
Joanna L. Ho ◽  
Fei Kang
Keyword(s):  
Family Firms ◽  
Agency Problems ◽  
Audit Fees ◽  
Additional Analysis ◽  
Audit Risk ◽  
Auditor Choice ◽  
Using Data

SUMMARY We examine auditor choice and audit fees in family firms using data from Standard & Poor's (S&P) 1500 firms. We find that, compared to non-family firms, family firms are less likely to hire top-tier auditors due to the less severe agency problems between owners and managers. Our results also show that family firms, on average, incur lower audit fees than non-family firms, which is driven by family firms' lower demand for external auditing services and auditors' perceived lower audit risk for family firms. Our additional analysis indicates that the tendency of family firms to hire non-top-tier auditors and to pay lower audit fees is stronger when family owners actively monitor their firms.

scholarly journals CSR reporting and ownership structure: Evidence from Italian listed companies

2020 ◽  
Vol 17 (3) ◽  
pp. 146-157 ◽  
Author(s):  
Fabio Fortuna ◽  
Mirella Ciaburri ◽  
Silvia Testarmata ◽  
Riccardo Tiscini
Keyword(s):  
Ownership Structure ◽  
Family Firms ◽  
Listed Firms ◽  
Ownership Structures ◽  
Csr Reporting ◽  
Concentrated Ownership ◽  
Csr Disclosure ◽  
Corporate Social ◽  
The Relationship ◽  
Dispersed Ownership

The paper empirically explores how firms’ Corporate Social Responsibility (CSR) disclosure varies according to their ownership structure. Three different kinds of ownership structures are considered: family firms (FFs), state-owned firms (SOFs) and firms with dispersed ownership (DOFs). It is the first study examining the relationship between CSR disclosure and ownership structure, which includes in the analysis also FFs and SOFs. The analysis is provided on a sample of 192 listed firms with reference to Italy, a suitable setting for the purpose of the study due to the considerable presence of both FFs and SOFs. Firstly, a content analysis on the CSR documents disclosed by the 192 firms is provided and then data are empirically analysed to test whether the ownership structure influences a firm’s CSR disclosure. Results show that FFs and SOFs disclose less CSR information and the explanation can be found in the lower level of agency problems they have to face. The paper contributes to the stream of literature about CSR disclosure, because it argues that the contents of CSR disclosure vary according to firm’s ownership structure and also to those about FFs and SOFs because it shows that the presence of a concentrated ownership lowers the level of CSR information disclosed.

scholarly journals Ownership Structure, Corporate Governance, and Corporate Social Responsibility with Financial Performance as Intervening

2020 ◽  
Vol 10 (2) ◽  
pp. 118-131
Author(s):  
Anang Ariful Habib ◽  
Muhammad Miqdad ◽  
Yosefa Sayekti
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Ownership Structure ◽  
Audit Committee ◽  
Managerial Ownership ◽  
Good Corporate Governance ◽  
Corporate Social ◽  
Positive Effect

Corporate Social Responsibility (CSR) programs are carried out by entities in the hope of getting legitimacy and positive values ​​from the community. So, companies can survive and develop, and it can increase profitability in the future.  CSR has a relationship with Good Corporate Governance (GCG), Ownership Structure, and Financial Performance. This research aims to analyze the effect of the ownership structure and good corporate governance on corporate social responsibility disclosure through finance performance. The interpretation technique of the sample that is used in this research is purposive sampling. That is the manufacturing company listed on the IDX period 2017 – 2019. The data analysis method that is used is the path analysis. The resulting research is the managerial ownership influence at finance performance significantly. Institutional ownership is not influenced by finance performance. The foreign ownership influence at finance performance significantly.  The measure of commissioner council influence at finance performance significantly. The Audit Committee has a positive effect on financial performance. Managerial ownership has a positive effect on CSR. Institutional ownership is no significant effect on CSR. Foreign ownership has a significant effect on CSR. The measure of Commissioners council has a significant effect on CSR. The Audit Committee has a significant effect on CSR. Financial performance has a significant effect on CSR.

scholarly journals PENGARUH STRUKTUR KEPEMILIKAN DAN UKURAN (SIZE) PERBANKAN TERHADAP KINERJA PERBANKAN 2009-2014

2018 ◽  
Vol 8 (2) ◽  
pp. 101-111
Author(s):  
Henny Ritha
Keyword(s):  
Panel Data ◽  
Data Processing ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Term Survival ◽  
Panel Data Regression ◽  
Data Regression ◽  
The Government

The ownership structure and size is an important part of long-term survival of banking industry, both of which can affect  the quality of manager (agent) to manage a bank, and encourage shareholders (principals) to manage banking operations in order to improve the performance of the banking system.This study is conducted to analyze the effect of Ownership Structure and size of banks on banks performance. Both Ownership structure which is represented by Institutional Ownership and Managerial Ownership and.size are independend variables, with Return On Equity is used as a proxy for performance valuation. This study used 6 samples of banks listed in Indonesian Stock Exchange for the period 2009-2014. Technique analysis used panel data regression analysis with Microsoft Excel 2003 data processing and Eviews.8. From the results of the panel data processing, the Common Effect Model approach is obtained as the best model for estimating panel data regression model. The research proves that managerial ownership and banks size  have significant impact on banks performance, meanwhile institutional ownership has no significant impact on banks performance. Simultaneously, the three variables have a significant effect and contributed 63.07 percent to the banks performance in Indonesian Stock Exchange from 2009 to 2014, meanwhile the remaining 36,93 percent is  influenced by other variables.Researcher suggests prolonging the research period, extending the sample criteria and increasing the ownership structure of foreign ownership, the government and society as well as adding the variable of Price Earning Ratio (PER) as a proxy for banking performance.

scholarly journals THE INFLUENCE OF AUDIT COMMITTEE AND OWNERSHIP STRUCTURE ON EARNINGS MANAGEMENT

2017 ◽  
Vol 8 (1) ◽  
pp. 1
Author(s):  
Metta Kusumaningtyas ◽  
Dessy Noor Farida
Keyword(s):  
Earnings Management ◽  
Ownership Structure ◽  
Audit Committee ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Manufacturing Companies ◽  
Public Ownership ◽  
Discretionary Accrual ◽  
Negative Effect

<p>The objective of this study is to analyze the influence of audit committee characteristics and ownership structure on earnings management. The characteristics which are used to measure the effectiveness of the audit committee are audit committee independence, audit committee competency, audit committee activity and audit committee size. Ownership structures are characteristics of public ownership, institutional ownership, and managerial ownership. Earnings management in this study were measured by using the value of discretionary accrual. The population in this study is manufacturing companies listed on the Indonesia Stock Exchange (BEI) in 2007-2012. Based on purposive sampling method, the number of samples in this study was 66 samples. Testing the hypothesis used multiple regression analysis. The results indicate that audit committee independent, audit committee size and institutional ownership had a significant negative effect on earnings management. Instead the others variables such as audit committee competency, audit committee activity, public ownership and managerial ownership did not influenced on earnings management.</p>

scholarly journals Leverage, Ownership Structure and Firm Performance: Evidence from Karachi Stock Exchange

2015 ◽  
Vol 2 (2) ◽  
pp. 1-7
Author(s):  
Adnan Ali ◽  
Attaullah Shah ◽  
Farzand Ali Jan
Keyword(s):  
Firm Performance ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Performance Measure ◽  
Managerial Ownership ◽  
Return On Assets ◽  
Control Variables ◽  
Simple Regression Analysis ◽  
Using Data ◽  
The Relationship

This study aims to investigate the relationship between the ownership structure and firm performance. The study uses two performance measures i.e. market-based performance measure (Tobin’s Q) and accounting-based performance measure (return on assets (ROA)) as dependent variables and ownership proxies and other control variables as independent variables whereas leverage is used as moderating variable. The ownership proxies include the managerial ownership and institutional ownership while the control variables include the size of the firm, the coefficient of variation, and growth. This study has used simple regression analysis while using data of 355 firms listed on Karachi Stock Exchange (KSE) for the years 2003 to 2008. The results show that the ownership structure has significant relationship with the market-based performance measure, while it has insignificant relationship with the accounting-based performance measure. Moreover, the leverage has no moderating effect on the relationship between ownership structure and firm performance

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