Corporate Board of Directors’ Attributes and Audit Fees

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.

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Corporate Governance Characteristics and Audit Fees

Organizational Auditing and Assurance in the Digital Age - Advances in Finance, Accounting, and Economics ◽

10.4018/978-1-5225-7356-2.ch002 ◽

2019 ◽

pp. 26-50 ◽

Cited By ~ 1

Author(s):

Ana Silva ◽

Helena Inácio ◽

Elisabete Vieira

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Stock Exchange ◽

Audit Fees ◽

Listed Companies ◽

The Other ◽

Stock Exchanges ◽

External Audit ◽

Governance Practices ◽

The Board Of Directors

The purpose of this chapter is to analyze the effect that corporate governance measures have in external audit fees in two countries where this matter is not much developed: Portugal and Spain. The analysis includes a sample of 39 listed companies on the Portuguese Stock Exchange and 104 listed companies on the Spanish Stock Exchanges for the years 2013 to 2015 using an OLS regression model. For the Spanish sample, the results show that the capital hold by the Board of Directors influence negatively external audit fees. The results are in accordance with the supplier perspective which states that better corporate governance practices decrease the control risk and, consequently, audit fees. On the other hand, the Board of Directors' diligence also affected external audit fees but positively, that is, the greater the number of meetings the greater the demand for an audit with quality which result in higher fees charged (demand perspective). For the Portuguese sample it can be observed that corporate governance characteristics do not affect external audit fees.

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Benchmarking boards of directors for better corporate governance

Corporate Board role duties and composition ◽

10.22495/cbv16i2art1 ◽

2020 ◽

Vol 16 (2) ◽

pp. 8-18

Author(s):

Hugh Grove ◽

Mac Clouse ◽

Tracy Xu

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Boards Of Directors ◽

Success Factors ◽

Market Performance ◽

Lessons Learned ◽

Future Research ◽

Corporate Board ◽

Governance Practices

The key question and major lessons learned in this research are that individual companies and their boards of directors could use the board director benchmarking information compiled in the Conference Board Report to assess their own boards of directors’ corporate governance practices. For an initial benchmarking approach, this paper compared a poor long-term market performance company (Grove & Clouse, 2019) with a strong long-term market performance company (Grove & Lockhart, 2019). The following benchmarked differences in the boards of directors of these two companies were key success factors for constellation: specific industry knowledge, younger directors, coaching/nurturing, involved roles, long-term compensation of directors, no board entrenchment, board assessment, and board committee rotation. The major sections of this paper are literature review, corporate board practices, benchmarking board of directors: poor long-term market performance example, benchmarking board of directors: strong long-term market performance example, conclusions, and future research. A major limitation of this paper, which could be investigated in future research, is to analyze benchmarked board categories to see if they help explain differences in comparative long-term market performances by many companies since companies and their markets are diverse.

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The Composition Of Corporate Boards Of Directors: Does Industry Matter?

Journal of Business & Economics Research (JBER) ◽

10.19030/jber.v10i3.6854 ◽

2012 ◽

Vol 10 (3) ◽

pp. 157 ◽

Cited By ~ 6

Author(s):

Dan Marlin ◽

Scott W. Geiger

Keyword(s):

Boards Of Directors ◽

Retail Trade ◽

Future Research ◽

Corporate Boards ◽

Font Size ◽

Corporate Board ◽

Publicly Traded ◽

Trade Finance ◽

Board Characteristics ◽

Publicly Traded Firms

The purpose of this study is to identify and examine differences in corporate board characteristics across four industries. Using a sample of 2592 US publicly traded firms, eleven board characteristics were identified and then examined across manufacturing, retail trade, finance/insurance, and services industries. Our analyses revealed significant differences in each of the eleven board characteristics examined. Implications and areas for future research are discussed.

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Implementing the board of directors’ mechanism – An empirical study of the listed firms in Libya

Corporate Board role duties and composition ◽

10.22495/cbv14i1art2 ◽

2018 ◽

Vol 14 (1) ◽

pp. 22-33 ◽

Cited By ~ 6

Author(s):

Jill Atkins ◽

Mohamed Zakari ◽

Ismail Elshahoubi

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Boards Of Directors ◽

Listed Companies ◽

Board Members ◽

Corporate Boards ◽

Listed Firms ◽

Stakeholder Groups ◽

The Board Of Directors ◽

Executive Managers

This paper aims to investigate the extent to which board of directors’ mechanism is implemented in Libyan listed companies. This includes a consideration of composition, duties and responsibilities of the board directors. This study employed a questionnaire survey to collect required data from four key stakeholder groups: Boards of Directors (BD), Executive Managers (EM), Regulators and External Auditors (RE) and Other Stakeholders (OS). The results of this study provided evidence that Libyan listed companies generally comply with the Libyan Corporate Governance Code (LCGC) requirements regarding the board composition: the findings assert that most boards have between three and eleven members, the majority of whom are non-executives and at least two or one-third of whom (whichever is greater) are independent. Moreover, the results indicate that general assemblies in Libyan listed companies are practically committed to the LCGC’s requirements regarding the appointment of board members and their length of tenure. The findings provide evidence that boards in Libyan listed companies are carrying out their duties and responsibilities in accordance with internal regulations and laws, as well as the stipulations of the LCGC (2007). Furthermore, the stakeholder groups were broadly satisfied that board members are devoting sufficient time and effort to discharge these duties and responsibilities properly. This study helps to enrich our understanding and knowledge of the current practice of corporate boards as a significant mechanism of corporate governance (CG) by being the first to address the board of directors’ mechanism in Libyan listed companies.

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A Thematic Review on Composition of Board of Directors (BOD) and Its Impact on Performance

NCC Journal ◽

10.3126/nccj.v3i1.20248 ◽

2018 ◽

Vol 3 (1) ◽

pp. 65-70

Author(s):

Dipti Dhungel

Keyword(s):

Corporate Governance ◽

Firm Performance ◽

Board Of Directors ◽

Boards Of Directors ◽

Corporate Boards ◽

Corporate Governance Mechanisms ◽

Thematic Review ◽

And Performance ◽

Main Component ◽

The Relationship

This thematic paper has been prepared to find out how the composition of Board of Directors makes impact on performance of firms. To find this impact, the articles published in international journals have been reviewed. In addition to this detailed study of the legislator, the provision regarding composition of BOD in Nepal was made as stated in BAFIA and Company Act. The Board of Directorsis the elected members among the shareholders who could best represent the interest of each and every member. Corporate boards are one of the, if not the most important, internal corporate governance mechanisms that monitor and advise management in fulfilling the mandate to protect shareholder interests.There is still much debate as to the relationship between firm performance and boards of directors, which are arguably the main component of corporate governance.The thematic review concludes that the relationship between BOD and performance was not found on the basis of existing literature reviewed. Thus, the study opened the ground for the researcher to test this empirically.NCC JournalVol. 3, No. 1, 2018, Page: 65-70

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Diversity in the board of directors and good governance practices

Economics and Business Letters ◽

10.17811/ebl.9.2.2020.97-105 ◽

2020 ◽

Vol 9 (2) ◽

pp. 97

Author(s):

Álvaro Melón-Izco ◽

Francisco J. Ruiz-Cabestre ◽

M. Carmen Ruiz-Olalla

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Boards Of Directors ◽

Good Governance ◽

Gender Diversity ◽

Positive Influence ◽

Board Diversity ◽

Corporate Governance Mechanisms ◽

Governance Practices ◽

The Board Of Directors

Motivated by the debate on the adequacy of the composition of boards of directors, we examine the effect that board diversity has on corporate governance performance in Spain, analysing gender diversity, diversity of director types and tenure diversity. The findings reveal that diverse boards of directors have a positive influence on good governance practices,improving the efficiency of corporate governance mechanisms. These results could be interesting for practitioners and regulators.

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COVID-19 and Corporate Governance Performance: Beyond the Financial Metrics

10.5772/intechopen.101281 ◽

2021 ◽

Author(s):

Ifeanyi Onuka Onwuka

Keyword(s):

Corporate Governance ◽

Environmental Sustainability ◽

Economic Value ◽

Corporate Boards ◽

Corporate Board ◽

Return On Equity ◽

Analytical Technique ◽

Ex Post ◽

Financial Metrics ◽

Post Measure

Corporate governance and, more broadly, the performance of corporate boards have traditionally been measured using financial metrics. These financial metrics such as Return on Investment (ROI), Return on Assets (ROA), Return on Equity (ROE), Earnings and Profitability Ratio (E and P) are ex post measure of organizations performance arising from corporate board activities. These financial metrics are largely one-dimensional measure of corporate performance and do not fully account for the other dimensions of organization responsibilities. The COVID-19 and the changing organizational dynamics have made the case for corporate board’s performance to be assessed beyond the usual financial metrics. In this study, we provide a framework that accounts for the various dimensions of organization activities: finance, social and environmental, the Triple-Bottom (TBL) approach. A TBL-compliance metric was constructed, which tracked the performance of selected manufacturing firms in Nigeria using a content analytical technique. The result showed that the majority of the firms performed remarkably well in areas of profitability and economic value creation but less satisfactorily in areas of social and environmental sustainability. On aggregate, the sampled firms committed less than 1% of their profit after tax on corporate social responsibility, while less than 5% of the sampled firms scored above average on the TBL-adoption matrix.

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Corporate Governance Code and Corporate Governance Implications for Business: A Critique of Nigeria’s 2016 and 2018 Codes

Recht in Afrika ◽

10.5771/2363-6270-2019-1-77 ◽

2019 ◽

Vol 22 (1) ◽

pp. 77-96

Author(s):

S. E. Ojogbo ◽

T. C. Nwano

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Corporate Boards ◽

Corporate Accountability ◽

Corporate Board ◽

Minority Shareholders ◽

Corporate Governance Code ◽

Good Corporate Governance ◽

Corporate Governance Codes ◽

Code Of Corporate Governance

Corporate governance is the system by which companies are directed and controlled. Board of directors are responsible for the governance of a Nigerian company. However, the shareholders of a Nigeria company have power of oversight over the board. This power is exercised by a majority of shareholders. It is this separation of ownership and control that makes good corporate governance imperative to protect shareholders against corporate board misbehaviour, as well as to protect minority shareholders against the opportunism of corporate insiders (board of directors and majority shareholders). Even though corporate law is the primary legislation that regulates the corporation, corporate governance codes have become important corporate governance standards that helps to guide the board and promote effective managerial engagement with shareholders to promote corporate accountability. The Financial Reporting Council of Nigeria (FRCN) issued two corporate governance codes in two years - the National Code of Corporate Governance 2016 and the Nigerian Code of Corporate Governance 2018. This shows a clear intention to promote good corporate governance in the country. This essay identifies the peculiar corporate governance challenges in Nigeria, and reviews the two corporate governance codes to show how they address the peculiar challenges. The paper undertakes a criticism of the 2018 and compares to the 2016 Code and corporate governance regulations in other regulations. This criticism highlights the weaknesses in the code and the need for a review. The essay thus suggests a review of the 2018 to provide for Independent Non-Executive Directors dedicated to the interest of minority shareholders as an important first step towards providing access to corporate boards for minority shareholders, as a strategy for promoting corporate accountability. The paper concludes that since the very essence of a corporate governance code is to promote good corporate governance and accountability, any corporate governance Code for Nigeria must address the peculiarity of the Nigerian corporate environment for it to be able to achieve this purpose.

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Do boards influence audit quality? A multidimensional analysis

Journal of Governance and Regulation ◽

10.22495/jgrv10i1art12 ◽

2021 ◽

Vol 10 (1) ◽

pp. 125-138

Author(s):

Radhi Al-Hamadeen ◽

Turki AlHmoud ◽

Hasan El-Nader ◽

Malek Alsharairi ◽

Firas Almasri

Keyword(s):

Corporate Governance ◽

Empirical Evidence ◽

Boards Of Directors ◽

Audit Quality ◽

Financial Statements ◽

Audit Fees ◽

Multidimensional Analysis ◽

Service Firms ◽

Corporate Boards

This study investigates how corporate boards of directors influence the quality of external audit in a sample of service firms listed on the Amman Stock Exchange (ASE). We contribute to the literature by providing empirical evidence on the efficacy of the corporate governance mechanisms through corporate boards to influence audit quality in an emerging country setting (i.e., Jordan). According to Chua (1986), this is mainstream “market-based” accounting research. We regress multiple dimensions that capture the quality of financial statements’ audit on a group of board of directors (BoD) characteristics for total observations of 225 firm-year obtained for 45 companies during the period (2014-2018). Specifically, the multidimensional analysis of the response variable, audit quality, includes audit firm’s internationalization, audit fees, auditor tenure, and the number of licensed practitioners at the audit firm. Using multiple linear (Panel Least Squares – PLS) and logistic regression models, we document empirical evidence that audit quality is positively affected by the independence and size of boards but negatively affected by CEOs duality, while no influence of the board’s expertise on any measures of the audit quality. The study provides implications for policymakers and investors regarding the signals that firms can send regarding the quality of financial statements audit when complying with the best practices of corporate governance

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Board composition and audit fee: Evidence from Russia

Corporate Ownership and Control ◽

10.22495/cocv8i2c5p5 ◽

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.

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