scholarly journals Internal Corporate Governance Mechanisms and Corporate Tax Avoidance in Nigeria: A Quantile Regression Approach

2021 ◽  
Vol 16 (1) ◽  
pp. 20
Author(s):  
Francis Chinedu Egbunike ◽  
Ardi Gunardi ◽  
Udunze Ugochukwu ◽  
Atang Hermawan
Keyword(s):  
Corporate Governance ◽  
Quantile Regression ◽  
Audit Committee ◽  
Tax Avoidance ◽  
Board Independence ◽  
Manufacturing Companies ◽  
Governance Mechanisms ◽  
Board Size ◽  
Ceo Duality ◽  
Corporate Governance Mechanisms

The main objective of the study was to investigate the effect of corporate governance on tax avoidance of quoted manufacturing firms in Nigeria. The study focused on internal corporate governance mechanisms and specifically examined the effect of board size, board independence, board diligence, CEO duality, and audit committee diligence. The ex post facto research design was adopted. The population comprised of all quoted manufacturing companies on the Nigerian Stock Exchange (NSE). The sample was purposively drawn as all companies in the consumer goods sector of the NSE. The study relied on secondary data obtained from annual reports and accounts of the sampled companies. Both descriptive and inferential statistics were used to analyze the data. The hypotheses were validated using Quantile Regression technique. Results showed that board size, board independence, and board diligence were significant at the median and 75th quantile. CEO duality and audit committee diligence were not significant at the 25th, 50th, and 75th quantile. The study recommended among others moderate board sizes to improve efficiency of decision-making. In addition, the need for more independent directors and meeting frequency should be tailored to suit the needs of the company. Keywords: corporate governance mechanisms, tax avoidance, quantile regression

scholarly journals Relationship Analysis of Corporate Governance Mechanisms, Audit Fees, and Financial Report Quality in Indonesia

2018 ◽  
Vol 7 (3.21) ◽  
pp. 73
Author(s):  
Dody Hapsoro ◽  
. .
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Audit Committee ◽  
Audit Fees ◽  
Manufacturing Companies ◽  
Governance Mechanisms ◽  
Financial Report ◽  
Relationship Analysis ◽  
Report Quality ◽  
Corporate Governance Mechanisms

The aim of this study is to examine the effect of corporate governance mechanisms on the financial reporting quality and examine the effect of corporate governance mechanisms on audit fees. In addition, this study also aimed to examine the effect of audit fees on the financial report quality. The sample in this study is manufacturing companies listed on the Indonesia Stock Exchange (BEI) in the period 2014 and 2015. The total sample is 144 companies. Data analysis was performed using Partial Least Squares (PLS). The results of this study show that the proportion of independent commissioners and audit committee from the board of commissioners and audit committee negatively affect audit fees; the proportion of independent commissioners and audit committee from the board of commissioners, audit committee, and board of directors negatively affect audit fees; the proportion of independent commissioners and audit committee from the board of commissioners and audit committee do not positively affect the financial report quality; the proportion of independent commissioners and audit committee from the board of commissioners, audit committee, and board of directors do not positively affect the financial report quality; and audit fees negatively affects the financial report quality.  

scholarly journals The effects of corporate governance mechanisms on the financial leverage–profitability relation

2019 ◽  
Vol 43 (4) ◽  
pp. 387-409
Author(s):  
Hanh Song Thi Pham ◽  
Duy Thanh Nguyen
Keyword(s):  
Corporate Governance ◽  
Panel Data ◽  
Emerging Market ◽  
State Ownership ◽  
Board Independence ◽  
Financial Leverage ◽  
Governance Mechanisms ◽  
Board Size ◽  
Content Type ◽  
Corporate Governance Mechanisms

Purpose This paper aims to investigate the moderating effects of corporate governance mechanisms on the financial leverage–profitability relation in emerging market firms. Design/methodology/approach The paper examines the impacts by estimating the empirical model in which a firm’s accounting profitability is a dependent variable, while financial leverage, board size, board independence, CEO duality, CEO ownership, state ownership and the interaction variables are predictors. The paper uses the panel data set of 295 listed firms in Vietnam in the period 2011-2015 and two key econometric methods for panel data, namely, the two-stage least square instrumental variable and general moments method. Findings The paper finds the evidence for the significant and positive effect of board size, board independence and state ownership on the financial leverage–profitability relation. The effect of CEO duality on the financial leverage–profitability relation tends to be negative, and the impact CEO ownership inclines to be positive, although both of them are statistically insignificant. The results are consistent across different estimation methods. Originality/value This paper is the first investigating the moderating effect of various corporate governance mechanisms on the financial leverage–profitability relationship in emerging market firms.

scholarly journals Emerging policies and the effectiveness of corporate governance mechanisms on earning quality

2020 ◽  
Vol 9 (3) ◽  
pp. 157-164
Author(s):  
Mohammed Mahdi Obaid ◽  
Muneer Rajab Amrah
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Gulf Cooperation Council ◽  
Independent Directors ◽  
Board Independence ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
Earning Quality ◽  
The Relationship

Current study review extant empirical researches on the relationship between CG and EQ. However, the scope of the reviewed studies was shown to vary, most studies on CG and EQ are specific in focus, with different studies focusing on specific aspects or measures of CG. This study evaluates the role of emerging policies and the effectiveness of corporate governance mechanisms on earning quality within a conceptual framework for the Gulf cooperation council. This study concludes that the majority of companies with big board size, higher board independence, and more frequent meetings have improved EQ. Also, the result indicates companies with big audit committee size, a larger number of independent directors, more audit committee meetings and more experts tend to have an increase in EQ. Finally, this review emerged as a framework suitable for assessing the level of EQ disclosed and the relationship between CG and EQ base on GCC policies.

scholarly journals PENGARUH CORPORATE GOVERNANCE MECHANISM TERHADAP NILAI PERUSAHAAN MELALUI PERTUMBUHAN, PROFITABILITAS DAN KEBIJAKAN DIVIDEN

2017 ◽  
Vol 19 (1) ◽  
pp. 42
Author(s):  
Muhamad Umar Mai
Keyword(s):  
Corporate Governance ◽  
Growth Effect ◽  
Governance Mechanism ◽  
Manufacturing Companies ◽  
Governance Mechanisms ◽  
Board Size ◽  
Return On Equity ◽  
Dividend Payments ◽  
Corporate Governance Mechanisms ◽  
Corporate Governance Mechanism

The purpose of this research is to analyze the influence of corporate governance mechanisms to the value of the firm through growth, profitability and dividend policy. The population of this study are all of manufacturing companies listed on the Indonesia Stock Exchange for the period of 2000-2012.  The sampling method used in this study was purposive sampling, with the criteria that the company distributed cash dividends and have an independent member of the board of trustees. This study proves that the growth of the company affecting the profitability and the firmsvalue, despite the fact that the company reduced its dividend payments. Sobel’s test result shows that firm’s growth effect to firm value mediating by profitability significantly, represented by return on equity. Corporate governance mechanisms plays an important role in preventing unproductively growth of companies that have reached the stage of maturity. The intensification of the firms value, also influenced by its ability to increase the profitability and dividend payments. Institutional ownership and board size as a proxy for corporate governance mechanism plays an important part to encourage companies to improve their return on equity, while the independent board persuade companies to increase the dividend payments. In this study the board size variable has shown a very important role on the increase of profitability, dividend payments, and therealizations of the value of the company.

The effect of characteristics of audit committee and board on corporate profitability in Iran

2018 ◽  
Vol 34 (1) ◽  
pp. 71-88 ◽  
Author(s):  
Mahdi Salehi ◽  
Mohammad Tahervafaei ◽  
Hossein Tarighi
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Emerging Market ◽  
Board Independence ◽  
Outside Directors ◽  
Governance Mechanisms ◽  
Content Type ◽  
Corporate Governance Mechanisms

Purpose The purpose of this paper is to evaluate the relationship between the characteristics of the audit committee and the board and profitability among the companies listed on the Tehran Stock Exchange (TSE) in Iran. Design/methodology/approach In this study, the companies listed on the TSE during the period from 2010 to 2015 are investigated. The Linear panel regression method is employed for this purpose. The independent variables of the study are composed of some corporate governance mechanisms including audit committee size, audit committee expertise, board size, board independence, chief executive officer (CEO) duality, and institutional ownership. Findings In spite of the fact that there does not exist any significant association between audit committee size and corporate financial performance, the results indicate that there is a positive and significant relationship between audit committee financial expertise and profitability. The authors found that the number of board members cannot affect corporate performance; moreover, duality of CEO role in Iranian companies does not affect company performance. However, the outcomes showed a positive and significant association between the proportion of outside directors on the board (board independence) and profitability at 99 percent confidence level. This implies that the role of non-executive directors in Iran is inconsistent with the stewardship theory. This is due to the fact that independent directors understand the status of business and market better than the board’s executive members. Finally, the results indicated that there is no significant association between institutional owners and Iranian companies’ performance. Practical implications The findings of this study will reveal more than ever the role of corporate governance mechanisms for society and users of financial statements because as tools on the CEO actions, they always have to pay attention to the implementation of corporate principles in the economic entity’ operation. Originality/value This is one of the most important studies that simultaneously examine the impacts of characteristics of the audit committee and the board on profitability in an emerging market, and the results of the study may give strength to Iranian as well other developing countries.

scholarly journals Analisis Pengaruh Mekanisme Good Corporate Governance, Leverage, dan Ukuran Perusahaan terhadap Tindakan Manajemen Laba pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2014-2016

2019 ◽  
Vol 1 (1) ◽  
pp. 141
Author(s):  
Selviani Selviani ◽  
Indra Widjaja
Keyword(s):  
Corporate Governance ◽  
Firm Size ◽  
Audit Committee ◽  
Stock Exchange ◽  
Earning Management ◽  
Manufacturing Companies ◽  
Governance Mechanisms ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanisms ◽  
Samples Selection

The purpose of this research is to test the influence of good corporate governance mechanisms, leverage, and firm size to the earnins management. This research applies good corporate governance mechanisms (with the proxy of managerial ownership, independent commissioner on the board, and audit committee), leverage, and firm size as independent variables, and earning management as dependent variable. The subject of the research is the manufacturing companies (limited to the consumer goods industry sector) which are listed in the Indonesia Stock Exchange from 2014 to 2016. The samples selection is performed by using purposive sampling method. From this method, it was collected 84 observations from 28 companies during 3 years. By using multiple regression analysis as the research method, the results shown that leverage and firm size have influenced to earning management, while good corporate governance mechanisms don’t have influence to earnings management.

Corporate governance mechanisms and firm performance in a developing country

2020 ◽  
Vol 62 (2) ◽  
pp. 147-169 ◽  
Author(s):  
Albert Puni ◽  
Alex Anlesinya
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Financial Performance ◽  
Governance Mechanisms ◽  
Board Size ◽  
Ceo Duality ◽  
Content Type ◽  
Board Committees ◽  
Discourse Practices ◽  
Corporate Governance Mechanisms

Purpose The purpose of this study is to examine the influence of corporate governance mechanisms recommended by the Securities and Exchange Commission (SEC) of Ghana on firm performance as measured by accounting-based ratios (return on assets, return on equity and earning per share) as well as market-based measure (Tobin’s Q) among listed Ghanaian companies from 2006 to 2018. These mechanisms are: board composition (board size, inside directors and outside directors), board committees (audit, remuneration and nomination), chief executive officer (CEO) duality/separation, board meetings and shareholder concentration. Design/methodology/approach The study used panel regression analysis of data from 38 listed firms in Ghana from 2006 to 2018 to test how each corporate governance variable initiated by the SEC of Ghana contributed to firm performance. Data were extracted from the annual reports of listed companies. Findings The study found that the presence of both insiders and outsiders on the corporate board improved financial performance. Similarly, board size, frequency of board meetings and shareholder concentration/ownership structure generally had a positive impact on financial performance. However, the presence of board committees generally had a negative impact on financial performance while CEO duality had no impact on financial performance. Practical implications The study contributes to the understanding of how good corporate governance practices affect firm performance for both academics and particularly Ghanaian policymakers. Originality/value This study provided new findings to bridge the gaps in the general corporate governance literature relative to the lack of consensus on financial impacts of corporate governance mechanisms. The finding contributes to knowledge by providing new and original evidence that some current corporate governance mechanisms are not effective in minimizing the agency problem in a developing setting. Furthermore, the authors anticipate that the outcomes of this research, which so far is the most comprehensive study in the Ghanaian context in terms of the coverage of corporate governance mechanisms specified by the SEC of Ghana, can significantly shape corporate governance discourse, practices and policies in Ghana, particularly and in other developing countries generally to improve financial performance and corporate sustainability.

scholarly journals Corporate governance mechanisms and audit report lag moderated by audit complexity

2019 ◽  
Vol 8 (6) ◽  
pp. 256-261
Author(s):  
Wa Ode Irma Sari ◽  
Bambang Subroto ◽  
Abdul Ghofar
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Financial Statements ◽  
Manufacturing Companies ◽  
Audit Report ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
Negative Effect ◽  
The Relationship

This study aims to verify the correlation between corporate governance mechanisms, reflected independent commissioners, audit committee and audit tenure to audit report lag, and the audit complexity has able to moderate the relationship between corporate governance mechanisms to audit report lag. This study uses a population of manufacturing companies that publish their financial statements on the Indonesian Stock Exchange in 2015-2017. The samples are selected with a purposive sampling method. There is 100 manufacturing company selected as the sample for the period of 2015-2017. This study was tested by using the Moderate Regression Analysis test. The results of this study indicate that the audit committee and audit tenure have a negative effect on audit report lag, but the independent commissioner has an insignificant effect on audit report lag. Audit complexity is proven to increase audit report lag as an increase audit committee. This research provides the capital market authority (OJK) to issue policies and strict sanctions, thus encouraging companies to publish audited financial statements more time.

scholarly journals PENGARUH MEKANISME CORPORATE GOVERNANCE TERHADAP TAX AVOIDANCE

2020 ◽  
Vol 13 (1) ◽  
pp. 115-120
Author(s):  
Agustina Mapadang
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Institutional Ownership ◽  
Manufacturing Companies ◽  
Governance Mechanisms ◽  
Tax Rate ◽  
Corporate Governance Mechanisms ◽  
The Board Of Directors ◽  
Negative Effect

This study aims to analyze the influence of corporate governance mechanisms on tax avoidance. Corporate governance mechanisms are measured by Independent Commissioners and Institutional Ownership while tax avoidance is measured by the Avoidance Tax Rate. The research population is all manufacturing companies listed on the Indonesia Stock Exchange in 2012-2016 using purposive sampling method. The number of observations of 435 and the type of research is the analysis of causal relationships to see the effect of each variable. The results of the study show that corporate governance mechanisms negatively affect tax avoidance; the board of directors has a positive effect on tax avoidance and institutional ownership has a negative effect on the value of the company.

scholarly journals PENGARUH CORPORATE GOVERNANCE (CG) TERHADAP KUALITAS LABA DENGAN MANAJEMEN LABA SEBAGAI VARIABEL INTERVENING PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BEI PERIODE 2015-2017

2019 ◽  
Vol 3 (2) ◽  
pp. 267
Author(s):  
Alvin Pranata Nanang ◽  
Hendang Tanusdjaja
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Earnings Quality ◽  
Institutional Ownership ◽  
Annual Reports ◽  
Managerial Ownership ◽  
Manufacturing Companies ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms

Penelitian ini dilakukan untuk menguji bagaimana pengaruh mekanisme tata kelola perusahaan (corporate governance) dalam hal ini yaitu: kepemilikan institusional, kepemilikan manajerial, komite audit, dan dewan komisaris independen terhadap kualitas laba dengan manajemen laba sebagai variabel intervening. Data yang digunakan dalam penelitian ini ialah data sekunder yang diperoleh melalui laporan keuangan dan laporan tahunan dari masing-masing perusahaan. Laporan keuangan dan laporan tahunan tersebut diperoleh melalui www.idx.co.id.  Analisis data dalam penelitian ini yaitu analisis jalur dengan SEM dengan menggunakan SMARTPLS 3. Populasi dalam penelitian ini ialah seluruh perusahaan manufaktur yang terdaftar di BEI pada periode 2015-2017, dengan total sampel sebesar 28 perusahaan. Hasil penelitian ini membuktikan bahwa mekanisme corporate governance dalam hal ini yaitu: kepemilikan institusional, kepemilikan manajerial, komite audit, dan dewan komisaris independen tidak memiliki pengaruh signifikan baik terhadap manajemen laba maupun kualitas laba. Manajemen laba berpengaruh signifikan terhadap kualitas laba. Mekanisme corporate governance dalam penelitian ini menunjukkan bahwa hanya kepemilikan institusional dan dewan komisaris independen yang memiliki pengaruh signifikan terhadap kualitas laba dengan manajemen laba sebagai variabel intervening, sedangkan kepemilikan manajerial dan komite audit tidak berpengaruh signifikan terhadap kualitas laba dengan manajemen laba sebagai variabel intervening. This study was conducted to examine how the influence of corporate governance mechanisms in this case, namely: institutional ownership, managerial ownership, audit committee, and independent board of commissioners on earnings quality with earnings management as an intervening variable. The data used in this study are secondary data obtained through financial reports and annual reports from each company. The financial statements and annual reports are obtained through www.idx.co.id. Analysis of the data in this study is path analysis with SEM using SMARTPLS 3. The population in this study are all manufacturing companies listed on the Indonesia Stock Exchange in the period 2015-2017, with a total sample of 28 companies. The results of this study prove that corporate governance mechanisms in this case are: institutional ownership, managerial ownership, audit committee, and the independent board of commissioners do not have a significant effect both on earnings management and earnings quality. Earnings management has a significant effect on earnings quality. The corporate governance mechanism in this study shows that only institutional ownership and independent board of commissioners have a significant influence on earnings quality with earnings management as an intervening variable, while managerial ownership and audit committees do not significantly influence earnings quality with earnings management as an intervening variable.

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