Organization Features and Profitability: Implications for a Sample of Emerging Countries

A huge number of prior works has tested the link between control mechanisms and organization profitability. Several methods are used by such works to enhance the notion that there is an inconsistent result in the link between the board feature and organization profitability. However, there is unpredictability of this link shown by the prior works. Thus, the current work aims at testing the board features as internal control mechanisms represented by the size of both organization and the board of directors in their impact on organization profitability in the non-financial companies in Jordan, which was selected from a sample of Emerging Countries. Data were collected from the annual reports for 65 organizations for the year 2019 from the website of ASE via utilizing a cross-sectional analysis study. After testing the hypothesis of the current work, the findings revealed that the size of the board of director has a significant impact on the organization profitability of nonfinancial companies in Jordan. However, this work showed that organization size has an insignificant impact on organization profitability. The current work might help policymakers in Emerging Countries in general, and Jordanian non-financial sector in particular, deliberate policies related to using robust control mechanisms to enhance directors' commitment toward utilizing internal control mechanisms for the ultimate aim in promoting organization profitability

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Board structure changes after accounting fraud: the case of Schneider Electric

The CASE Journal ◽

10.1108/tcj-04-2019-0036 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Benedicte Millet-Reyes ◽

Nancy Uddin

Keyword(s):

Corporate Governance ◽

Internal Control ◽

Multinational Corporation ◽

Business Case ◽

Annual Reports ◽

Board Structure ◽

Control Mechanisms ◽

Accounting Fraud ◽

Content Type ◽

The Impact

Theoretical basis The impact of corporate governance on internal controls and quality of financial disclosures. Research methodology Analysis of a real financial fraud event for a non-US multinational corporation. The case relies on accessing and analyzing annual reports for the firm, both before and after the fraud. Additional information on industry governance characteristics are provided in the case itself so that students can compare the firm to the industry. Case overview/synopsis This business case is centered on the analysis of Schneider Electric, a French multinational corporation, which had to restate their financial statements in 2011 because of accounting fraud. Following this event, Schneider undertook major changes in their board structure to improve internal control mechanisms. This pedagogical business case familiarizes students with international differences in ownership and board structure and emphasizes potential corporate governance changes after financial statement fraud. Complexity academic level Managerial finance, corporate finance, international finance, auditing. This case is more appropriate for upper-level undergraduate and graduate courses.

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Analysis of the Information Disclosure of Commercial Banks’ Internal Control

International Journal of Economics and Finance ◽

10.5539/ijef.v9n5p77 ◽

2017 ◽

Vol 9 (5) ◽

pp. 77

Author(s):

Fangliang Huang ◽

Jing Chen ◽

Hui Ma ◽

Qiaoping Hou

Keyword(s):

Internal Control ◽

Commercial Banks ◽

Voluntary Disclosure ◽

Information Disclosure ◽

Audit Committee ◽

Positive Impact ◽

Annual Reports ◽

Control Information ◽

The Board Of Directors

By adopting the content analysis approach, this paper selects the annual reports of 45 China’s commercial banks to analyze the influencing factors of internal control information disclosure. The quality of internal control information disclosure of listed banks tends to be better than non-listed banks. Our empirical study shows that the factors of the exchanges of the banks’ listing, the proportion of the number of independent directors in the board of directors, and the times of the audit committee meetings have a significant positive impact on the quality of internal control information disclosure of commercial banks. To improve the quality of the internal control information disclosure of commercial banks, we put forward such suggestions as amending the supervision system, reducing the listing threshold and creating opportunities for listing for small and medium sized commercial banks, developing voluntary disclosure incentive policies, and intensifying effective punishment measures against and misbehavior in the information disclosure.

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An assessment of Information disclosures by Pharmaceutical Industry: Evidence from India

Multidisciplinary Journal for Education Social and Technological Sciences ◽

10.4995/muse.2019.11531 ◽

2019 ◽

Vol 6 (2) ◽

pp. 147

Author(s):

Rupali Khanna ◽

Bhupinder Pal Singh Chahal

Keyword(s):

Voluntary Disclosure ◽

Descriptive Statistics ◽

Annual Reports ◽

Checklist Item ◽

Pharmaceutical Sector ◽

Cross Sectional ◽

Checklist Score ◽

Sectional Analysis ◽

Increasing Trends ◽

Potential Opportunity

The information disclosed by the companies in their annual reports reveals much about company’s performance and prospects. Investors take the information as base for decision for investment. Under such circumstance, companies choose to disclose beyond what is mandatorily required. Theories like agency theory, capital need theory and signaling theory support the need of voluntary disclosure. This study is about investigating the extent of Voluntary disclosure in pharmaceutical sector of India which is 3rd in World in terms of Volume of Trade.Objective: To investigate the extent of voluntary disclosure practices prevailing in pharma sector of India, for the year 2010-11 to 2017-18.Significance of the study: This study aims to explore the corporate aspect of pharmaceutical sector. Any growing avenue is a potential opportunity for investors looking for parking their money to get adequate returns. Thus, Indian Pharma sector has come up in flying colors as an avenue for investors to place their money owing to its 100% FDI . Investors have been looking for more and more information from this sector to ensure the safety of funds. Thus the extent of disclosures is worth studying to place a suggestion for the policymakers to introduce the changes in the present set of disclosure practices in pharmaceutical sector.Research Methodology: To understand the extent of voluntary disclosure, a disclosure checklist is constructed and descriptive statistics are carved out to reach the results. The checklist consists of 55 items which are not mandatory by law. The checklist is based on dichotomous scale of ‘1’ and ‘0’ representing presence and absence of the checklist item respectively. The cross sectional analysis is carried out to investigate the year wise and company wise disclosure for eight years.<div>Findings: Though the study observes an increasing trends in the disclosure scores, but the findings are alarming to state that the highest score attained by any company throughout the period of 8 years was 37 (out of 55) not even meeting 80% of the total checklist score. This shows that pharmaceutical sector is not so friendly at disclosures. The probable reasons for such startling results are discussed in the study.</div>

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Political Connection and Real Earnings Management in Nigeria

Jurnal Aplikasi Manajemen, Ekonomi dan Bisnis ◽

10.51263/jameb.v5i2.121 ◽

2021 ◽

Vol 5 (2) ◽

pp. 12-18

Author(s):

Ahmad Haruna Abubakar ◽

Peter U Anuforo ◽

Dahiru Hussaini ◽

Musa Isa

Keyword(s):

Earnings Management ◽

Financial Reporting ◽

Internal Control ◽

Reporting Quality ◽

Real Earnings Management ◽

Annual Reports ◽

Control Mechanisms ◽

Political Connection ◽

Financial Firms ◽

Political Network

There is currently exists an important question on whether firm’s political network affect the level of their earning information. The aim of this study is to examine the influence of political connection on real earnings management. The analyses involve a sample of 72 non-financial firms with 360 firm-year observations for a five-year period (2014-2019). Data was obtained from the annual reports of these companies as well as from Thompson Reuters and Bloomberg databases. The Panel Corrected Standard Error was used to test the model studied. The finding shows that firms board with political connection are possible to have earnings manipulation which deteriorate the earnings quality. Thus, this study recommends that increased attention should be given to internal control mechanisms to help curtail corporate earnings manipulations, reduce the effect of political connection, and enhance the financial reporting quality.

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A cross-sectional analysis of the influence of corporate governance features on the organizational outcomes: An assessment

IIUC Studies ◽

10.3329/iiucs.v17i1.54981 ◽

2021 ◽

pp. 9-26

Author(s):

Tariq Tawfeeq Yousif Alabdullah ◽

Essia Ries Ahmed

Keyword(s):

Corporate Governance ◽

Financial Sector ◽

Organizational Outcomes ◽

Negative Influence ◽

Positive Influence ◽

Governance System ◽

Cross Sectional ◽

Audit Commission ◽

The Board Of Directors ◽

Sectional Analysis

This work aimed at testing the influence of corporate governance features on the organizational outcomes in one of the countries of the Gulf Cooperation Council (GCC) which is Qatar. The data was used for the organizations that belong to non-financial sector. The findings revealed that the size of audit commission, the board of directors size, and independency have positive influence on organizational outcomes represented by return on assets. In addition, the same positive influence could be found between the size of the audit commission and independency with return of equity as a second measurement of the organizational outcomes. Moreover, meeting of the board has a significant negative influence on organizational outcomes. The present work is considered as the first study that tests its predictor variables in its relationship with organizational outcomes. The considerable contribution of this study lies in identifying the previous studies gap for the GCC countries and analyses several viable studies that might probably be useful for improving corporate governance system in the non-financial sector. IIUC Studies Vol.17, December 2020: 9-26

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RISK MANAGEMENT AND INTERNAL CONTROL SYSTEM OF NIGERIA’S BANKING SECTOR

Humanities & Social Sciences Reviews ◽

10.18510/hssr.2019.74128 ◽

2019 ◽

Vol 7 (4) ◽

pp. 943-949

Author(s):

Sunny O. Temile ◽

Lucky Izobo Enakirerhi ◽

Ighosewe Enaibre Felix ◽

Dadang Prasetyo Jatmiko

Keyword(s):

Risk Management ◽

Control System ◽

Credit Risk ◽

Internal Control ◽

Significant Relationship ◽

Financial Distress ◽

Banking Sector ◽

Annual Reports ◽

Cross Sectional ◽

Internal Control System

Purpose: This study empirically observed the relationship between risk management and the internal control system of the banks in Nigeria. Methodology: In order to achieve the main objective of this paper, we made use of data from the annual reports of fifteen commercial banks, covering a period of ten years (2007 – 2016). The study is empirical in nature and adopted a cross-sectional research design. Furthermore, the Panel Data Regression estimation technique was employed to estimate the specified model of the study. Result: The results revealed the existence of a negative and significant relationship between credit risk and internal control. Liquidity risk which was measured using liquidity ratio has a positive and statistically significant relationship with internal control of banks in Nigeria. Based on the findings, the importance of strong and vibrant internal control policies across banks in Nigeria cannot be over-emphasized. This is because the more the internal control put in place, the greater the liquidity for banks to carry out their banking operations. On the other hand, the greater the internal control, the lesser the credit risk. Applications: This research can be used for the universities, teachers, and students. Novelty/Originality: Due to the recurring financial distress and eventual liquidation of some banks in Nigeria, this study is very necessary as it stresses the relevance and needs for effective internal control strategies in line with global best practices.

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Impact of Ownership Type and Board Characteristics on the Pay–Performance Relationship: Evidence from India

Indian Journal of Corporate Governance ◽

10.1177/0974686218763853 ◽

2018 ◽

Vol 11 (1) ◽

pp. 1-34 ◽

Cited By ~ 2

Author(s):

Manika Kohli

Keyword(s):

Internal Control ◽

Corporate Performance ◽

Institutional Environment ◽

Control Mechanisms ◽

Executive Pay ◽

Ownership Type ◽

The Board Of Directors ◽

The Difference ◽

Performance Based Pay ◽

And Performance

The present research has been undertaken to study the role of ownership type and board mechanisms in moderating the executive pay-corporate performance linkage in the Indian context. A sample of 209 companies listed on the S&P BSE 500 Index has been studied over the period 2008–2009 to 2012–2013. Rigorous statistical analysis of the panel data highlights that some of the governance mechanisms are, in practice, instrumental in improving the relationship between pay and performance. Whereas efforts must, indeed, be channelled towards the better functioning of certain other internal control mechanisms. Specifically, of noteworthy consequence is the difference in the way the shareholders and the board of directors ameliorate the pay–performance relationship with respect to accounting vis-à-vis market-based corporate performance. Further, the weak monitoring role discharged by the institutional investors warrant immediate policy concern. The study brings forth important implications for practitioners and policy makers in designing corporate performance-based pay keeping in view the predominant influence exerted by the institutional environment of the emerging economy of India.

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Ultramicrotomy as a Technique for Materials Specimen Preparation

Proceedings, annual meeting, Electron Microscopy Society of America ◽

10.1017/s0424820100135745 ◽

1990 ◽

Vol 48 (2) ◽

pp. 428-429

Author(s):

S.R. Glanvill

Keyword(s):

Materials Science ◽

Structural Information ◽

Specimen Preparation ◽

Preparation Technique ◽

Cross Sectional ◽

Surfaces And Interfaces ◽

Beam Analysis ◽

Flat Embedding ◽

20 Nm ◽

Sectional Analysis

This paper summarizes the application of ultramicrotomy as a specimen preparation technique for some of the Materials Science applications encountered over the past two years. Specimens 20 nm thick by hundreds of μm lateral dimension are readily prepared for electron beam analysis. Materials examined include metals, plastics, ceramics, superconductors, glassy carbons and semiconductors. We have obtain chemical and structural information from these materials using HRTEM, CBED, EDX and EELS analysis. This technique has enabled cross-sectional analysis of surfaces and interfaces of engineering materials and solid state electronic devices, as well as interdiffusion studies across adjacent layers.Samples are embedded in flat embedding moulds with Epon 812 epoxy resin / Methyl Nadic Anhydride mixture, using DY064 accelerator to promote the reaction. The embedded material is vacuum processed to remove trapped air bubbles, thereby improving the strength and sectioning qualities of the cured block. The resin mixture is cured at 60 °C for a period of 80 hr and left to equilibrate at room temperature.

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Twitter Usage Using Common Reference to Tinnitus

American Journal of Audiology ◽

10.1044/2020_aja-19-00055 ◽

2020 ◽

Vol 29 (2) ◽

pp. 206-217

Author(s):

Jianyuan Ni ◽

Monica L. Bellon-Harn ◽

Jiang Zhang ◽

Yueqing Li ◽

Vinaya Manchaiah

Keyword(s):

Nonprofit Organizations ◽

Temporal Trends ◽

Temporal Analysis ◽

Cross Sectional ◽

For Profit ◽

Common Reference ◽

Personal Experiences ◽

Twitter Users ◽

Sectional Analysis ◽

Share Information

Objective The objective of the study was to examine specific patterns of Twitter usage using common reference to tinnitus. Method The study used cross-sectional analysis of data generated from Twitter data. Twitter content, language, reach, users, accounts, temporal trends, and social networks were examined. Results Around 70,000 tweets were identified and analyzed from May to October 2018. Of the 100 most active Twitter accounts, organizations owned 52%, individuals owned 44%, and 4% of the accounts were unknown. Commercial/for-profit and nonprofit organizations were the most common organization account owners (i.e., 26% and 16%, respectively). Seven unique tweets were identified with a reach of over 400 Twitter users. The greatest reach exceeded 2,000 users. Temporal analysis identified retweet outliers (> 200 retweets per hour) that corresponded to a widely publicized event involving the response of a Twitter user to another user's joke. Content analysis indicated that Twitter is a platform that primarily functions to advocate, share personal experiences, or share information about management of tinnitus rather than to provide social support and build relationships. Conclusions Twitter accounts owned by organizations outnumbered individual accounts, and commercial/for-profit user accounts were the most frequently active organization account type. Analyses of social media use can be helpful in discovering issues of interest to the tinnitus community as well as determining which users and organizations are dominating social network conversations.

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