Mediating Impact of Financial Statements Window Dressings in Public Listed Companies Based on Corporate Governance Mechanism and Firm Financial Performance

This research examined the effects of corporate governance variables (foreign ownership, managerial ownership) on earnings multiples (FFP), and also the ability to earn management to mediate the relationship between corporate governance variables and earnings multiples. In this study, foreign ownership and managerial ownership are independent variables, earnings multiples (developed through PCA method from ROA, ROE and share price) is dependent variable and earnings management is mediating variable. All the relationship between dependent, independent and mediating variables are postulate on renowned agency theory. We estimate the dependent variable, i.e. earnings multiples (developed through PCA method from ROA, ROE and share price) while earning management is measured through modified Jones model, while rest of the data for CG variables are collected from the annual reports of the companies included in the sample. While financial data of earnings multiples and earning, management extracted from DataStream for the corresponding periods.

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Impact of corporate governance index on firm performance: evidence from Pakistani manufacturing sector

Journal of Governance and Regulation ◽

10.22495/jgr_v4_i3_c1_p6 ◽

2015 ◽

Vol 4 (3) ◽

pp. 163-174 ◽

Cited By ~ 1

Author(s):

Faisal Javaid

Keyword(s):

Corporate Governance ◽

Firm Performance ◽

Capital Investment ◽

Random Effect ◽

Annual Reports ◽

Governance Mechanism ◽

Inconsistent Result ◽

Governance Index ◽

Corporate Governance Mechanism ◽

The Relationship

Corporate governance is considered to have significant impact on the growth and development perspective of an economy. Sound corporate governance practices leads the economy towards the achievement of higher performance, provide sources for capital investment by increasing the creditability of shareholders. The purpose of this study is to empirically investigate the relationship of corporate governance and firm performance in terms of accounting as well as market performance i.e.to be measured by Return on asset, Return on equity and Tobin’s Q. The theoretical base to conduct the study is the demand of separation of ownership and control characterize as agency theory. The previous studies have yielded inconsistent result. To achieve the purpose 58 textile sector companies were selected listed in the Karachi stock exchange and data was taken from annual reports of the companies for the period of 2009 to 2013. Descriptive statistics, correlation analysis and regression estimation using pooled, fixed effect, random effect and Hausman specification test were carried out after developing a composite index based on 21 proxies. The result entails that corporate governance index (CGI) and firm performance has positive and significant association but the relationship for each specific index is dependent upon the measure of firm performance. The result also shows that companies having strong corporate governance mechanism has greater chances to acquire finance. The implication of study demands that the reform effort should be directed towards the improvement in internal corporate governance mechanism and regulatory framework for the governance system.

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PENGARUH MEKANISME CORPORATE GOVERNANCE TERHADAP TRANSPARANSI

Current: Jurnal Kajian Akuntansi dan Bisnis Terkini ◽

10.31258/jc.1.1.52-67 ◽

2020 ◽

Vol 1 (1) ◽

pp. 52-67

Author(s):

Dian Ramadhani ◽

Raja Adri Satriawan Surya ◽

Arumega Zarefar

Keyword(s):

Corporate Governance ◽

Audit Quality ◽

Stock Exchange ◽

Statistical Tests ◽

Foreign Ownership ◽

Debt Financing ◽

Annual Reports ◽

Managerial Ownership ◽

Governance Mechanisms ◽

Corporate Governance Mechanisms

This study aims to examine the influence of corporate governance mechanisms to transparency. Corporate governance mechanisms examined in this study include internal mechanism consisting of: commissioners, managerial ownership, foreign ownership, debt financing, and audit quality. The population in this study is a registered company in Indonesia Stock Exchange for the period 2015 - 2018. The sample in this research determined by purposive sampling method with a total sample of 103 annual reports. Statistical tests showed that the board of directors, managerial ownership, foreign ownership, debt financing has no effect on the performance of the company while the quality of the audit have an impact on transparency.

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Corporate governance and Shariah non-compliant risk in Islamic banks: evidence from Southeast Asia

Corporate Governance ◽

10.1108/cg-05-2019-0138 ◽

2019 ◽

Vol 20 (2) ◽

pp. 240-262 ◽

Cited By ~ 1

Author(s):

Rohaida Basiruddin ◽

Habib Ahmed

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Boards Of Directors ◽

Annual Reports ◽

Islamic Banks ◽

Governance Mechanism ◽

Content Type ◽

Country Level ◽

The Board Of Directors ◽

The Relationship

Purpose This study aims to investigate the relationship between corporate governance and Shariah non-compliant risk (SNCR) that is unique for Islamic banks. The study examines the roles of Shariah committee along with the board of directors in mitigating SNCR. Design/methodology/approach The paper empirically investigates the implications of characteristics of board of directors and Shariah committee on the SNCR by using a sample of 29 full-fledge Islamic banks from Malaysia and Indonesia over the period 2007-2017. All data is hand collected from the Islamic banks' annual reports with the exception of country-level data collected from the World Bank database. Findings The results show that banks with a smaller board size and higher proportion of independent board members are likely to have lower SNCR. The findings also indicate that the financial expertise and higher frequency of Shariah committee meetings reduces the SNCR. Collectively, the analysis shows that banks with strong corporate governance environments reduce SNCR. Practical implications The findings of the study shed light on the relationship between corporate governance practice, Shariah committee characteristics and SNCR. The results can be used by different stakeholders such as policymakers, boards of directors and senior management of Islamic banks to mitigate SNCR. Originality/value This study extends the literature on corporate governance and risk-taking by including additional dimensions of governance and risk type. The corporate governance mechanism at the board level is complemented by including the Shariah committee characteristics and SNCR which is relevant to Islamic financial institutions is examined.

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Ownership Structure and Earnings Management of Listed Conglomerates in Nigeria

Indian-Pacific Journal of Accounting and Finance ◽

10.52962/ipjaf.2017.1.4.27 ◽

2017 ◽

Vol 1 (4) ◽

pp. 42-54

Author(s):

Musa Adeiza Farouk ◽

Nafiu Muhammad Bashir

Keyword(s):

Earnings Management ◽

Ownership Structure ◽

Institutional Ownership ◽

Foreign Ownership ◽

Negative Influence ◽

Least Square ◽

Earning Management ◽

Annual Reports ◽

Secondary Source ◽

Managerial Ownership

Earnings management is a critical issue in developed and developing countries. In Nigeria, the issue is left under the disguise of business ethics. Only the financial sector of the economy is under close surveillance to check the earning management excesses. Even though earning management does not violate accounting rules, its practice is ethically questionable. Therefore, the study examines the effect of ownership structure on earnings management of listed conglomerates in Nigeria. Ownership structure is represented with managerial ownership, institutional ownership, block ownership and foreign ownership, while earnings management is measured using modified Jones model by Dechow, Sloan and Sweeney (1995). The robust ordinary least square technique was used while Stata 13 was adopted as a tool for the analysis. Data were obtained from the secondary source through the firm’s annual reports and accounts. The entire six listed conglomerates on the Nigerian Stock Exchange were used covering the period 2008-2014. The findings show that managerial ownership and ownership concentration have a significant and negative effect on earnings management of listed conglomerates in Nigeria, while foreign ownership recorded positive and significant effect on earnings management of firms, institutional ownership was however reported to have an insignificant but negative influence on earnings management. The study, therefore, recommends that management should be encouraged to have more interest through shares in the organisation as it enables them to have more sense of belonging, which in turn will help mitigate their opportunistic tendencies.

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DETERMINAN MANAJEMEN LABA AKRUAL PADA INDEKS LQ45 DAN JII PERIODE 2010-2015

Riset Akuntansi dan Keuangan Indonesia ◽

10.23917/reaksi.v3i2.6702 ◽

2018 ◽

Vol 3 (2) ◽

pp. 141-151

Author(s):

Rina Trisnawati ◽

Mardayaningrum Mardayaningrum ◽

Laillatul Khotimah

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Cash Flow ◽

Audit Committee ◽

Sampling Method ◽

Free Cash Flow ◽

Earning Management ◽

Managerial Ownership ◽

Governance Mechanism ◽

Corporate Governance Mechanism

The purpose of this study is to examine and analyze the mechanisms of corporate governance, leverage and the free cash flow against the accrual earning management on LQ45 and JII Indexes during the 2010-2015 period. The number of samples in the study is 144 companies in JII index and 121 companies in JII indexs. Sampling techniques using purposive sampling method. Methods of data analysis using multiple linear regression to test and prove the hypothesis of the study. Research results showed the proxy of corporate governance mechanism with institutional ownership, managerial ownership, the proportion of Board of Commissioners and the audit committee no effect to accrual earnings management.(prob value >0.05). The free cash flow and leverage have an effect significantly to accrual earning management (prob value <0.05). Meanwhile in JII index, they have the same results. Corporate governance also no effect to accrual earning management, but the free cash flow and leverage have an effect significantly to accrual earning management. Keywords: corporate governance, leverage, free cash flow, accrual earnings management

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HUBUNGAN BOARD DAN KOMITE AUDIT TERHADAP MANAJEMEN LABA

Jurnal Kajian Akuntansi dan Auditing ◽

10.37301/jkaa.v0i0.5080 ◽

2010 ◽

Author(s):

Fivi Anggraini

Keyword(s):

Corporate Governance ◽

Moral Hazard ◽

Earnings Management ◽

Conflict Of Interest ◽

Significant Relationship ◽

Stock Exchange ◽

Earning Management ◽

Independent Directors ◽

Relationship Of ◽

The Relationship

Earnings management is the moral hazard problem of manager that adses because of the conflict of interest between the manager as agent and the stakeholder and the owner as principal. The behavior of earnings management will immediately influence the reported earning. The aims of this research at examining the relationship of board and audit committe to earnings management. The samples of this research is all of companies member Corporate Governance Perception Index (CGPI) in the years of 2003-2006 which were listed in Jakarta Stock Exchange. The results of this study show that (1) the proportion of independent directors on the board had not significant relationship to earning management, (2) competence of independent directors on the board had not significant relationship to earning management, (3) the size of board had significant relationship to earning management, (4) the proportion of independent directors on the audit committe had not significant relationship to earning management, and (5) competence of members of the audit committe had significant relationship to earning management.

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IMPACT OF CORPORATE GOVERNANCE ON FIRM PERFORMANCE: EVIDENCE FROM PAKISTAN

DECEMBER - Journal of Social Research Development ◽

10.53664/jsrd/02-01-2021-02-16-28 ◽

2021 ◽

Vol 02 (01) ◽

pp. 16-28

Author(s):

Feryal Zafar ◽

Shaheera Munir ◽

Muhammad Saqib Khan

Keyword(s):

Corporate Governance ◽

Decision Makers ◽

Annual Reports ◽

Board Independence ◽

Negative Effects ◽

Research Issues ◽

Listed Firms ◽

Analysis Technique ◽

Dependent Variables ◽

The Relationship

The study attempts to figure out the relationship between the performance of the firms and corporate governance in Pakistan. Governance mechanisms used in this study are CEO duality, Independence of Board, Size of Board, and Ownership Concentration. While, the ROA and ROE have been used as dependent variables to measure the performance of firms. Using regression analysis technique on 10 listed firms trading over four years from 2014-2017, the results have been derived. The data regarding all the variables have been collected from all the companies’ annual reports. The discoveries of the study direct that fundamentals of corporate governance such as the Size of the Board, Ownership, and Duality Concentration of CEO have negative effects on performance of organization, as measured by ROA and ROE. While Board independence positively affects the performance of firms. The results are thus significant and provide valuable information for the decision makers about the research issues under consideration.

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Hedging Activities Information and Risk Management Committee Effectiveness: Malaysian evidence

10.31235/osf.io/kxfqe ◽

2018 ◽

Author(s):

Azrul Bin Abdullah ◽

Ku Nor Izah Ku Ismail

Keyword(s):

Risk Management ◽

Corporate Governance ◽

Significant Influence ◽

Statistical Models ◽

Voluntary Disclosure ◽

Annual Reports ◽

Management Committee ◽

Corporate Governance Mechanisms ◽

The Relationship ◽

Risk Management Committee

This study examines the extent of information about hedging activities disclosures within the annual reports of Main Market companies listed on Bursa Malaysia. The extent of hedging activities disclosures is captured through a 32-item-template, which consists of a mandatory and voluntary disclosure scores. The results of this study indicate that the extent of information on hedging activities disclosure is still insufficient among the sampled companies even though the disclosure scored is quite high. This study also examines the relationship between the existence of risk management committee (RMC), its characteristics and the extent of information on hedging activities disclosure in two separate statistical models. The regression results imply that the existence of RMC is positive but does not significantly influence the extent of information on hedging activities disclosure. However its characteristics (i.e. RMC independence and RMC meeting) have a significant influence. The findings may provide some meaningful insights to regulators, policymakers and researchers, towards the establishment of RMC as a part of the internal corporate governance mechanisms. In addition to its existence, the effectiveness of RMC also needs to be emphasised.

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Determinan Manajemen Laba Perusahaan di Sektor Konsumsi

EKONOMIS Journal of Economics and Business ◽

10.33087/ekonomis.v3i2.68 ◽

2019 ◽

Vol 3 (2) ◽

pp. 96

Author(s):

Muhammad Fajri

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Cash Flow ◽

Institutional Ownership ◽

Free Cash Flow ◽

Earning Management ◽

Managerial Ownership ◽

Leverage Ratio ◽

Good Corporate Governance ◽

The Impact

The aim of this research is to provide empirical evidence on the impact of good corporate governance, free cash flow, and leverage ratio on earnings management. Good corporate governance is measured by audit committee’s size, the proportion of independent commissioners, institutional ownership, and managerial ownership. Discretionary accrual is the proxy of earning management. This research used 28 consumer goods companies listed in Indonesia Stock Exchange from 2016 to 2018. Data were analyzed using panel data with random effect model. Based on the result of analysis concluded that all components of good corporate governance (audit committee’s size, the proportion of independent commissioners, institutional ownership, and managerial ownership), have no significant effect on earnings management, on other hand leverage ratio has a negative effect and no significant on earning management, and free cash flow has a positve and no significant effect on earnings management

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THE INFLUENCE OF CORPORATE GOVERNANCE, COMPANY SIZE, AND LEVERAGE TOWARD EARNING MANAGEMENT

Jurnal Akuntansi Trisakti ◽

10.25105/jat.v6i1.4869 ◽

2019 ◽

Vol 6 (1) ◽

pp. 19

Author(s):

Mayasari Mayasari ◽

Ayu Yuliandini ◽

Intan Indah Permatasari

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Firm Size ◽

Stock Exchange ◽

Sampling Technique ◽

Earning Management ◽

Managerial Ownership ◽

Company Size ◽

Negative Effect ◽

Positive Effect

The purpose of this study is to examine the influence of GCG variables, firm size, and leverage on earnings management. The sample used is 35 public listed property and real estatecompanies in the Indonesia Stock Exchange (IDX) from 2015 until 2017. The sampling technique uses purposive sampling. This study uses multiple regression. The results of the analysis showed that managerial ownership does not have a negative effect on earnings management but oppositely, it has a positive effect on earnings management, while company size does not have any effect on earning management.

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