MODERATING INFLUENCE OF AUDIT QUALITY ON THE RELATIONSHIP BETWEEN CONCENTRATED OWNERSHIP AND ACCOUNTING CONSERVATISM: IN PAKISTANI LISTED FIRMS: EMPIRICAL EVIDENCE FROM GMM TECHNIQUE

Purpose of study: This study sought to investigate the effect of the audit committee on Financial Reporting Quality (FRQ), explicitly focuses on the period pre- and post-mandatory IFRS adoption in Malaysia. The Financial Reporting Quality in this study proxied by earnings management. Malaysian. Methodology: The sample study has covered 81 listed companies on Bursa Malaysia, with 567 observations, which examined the time of 2009 to 2015. The relationship was analyzed by statistical multiple regression linear methods and also examined the significance of differences between pre and post IFRS adoption by paired sample t-test. Result: The main finding reveals that the relationship between the audit committee and financial reporting quality after IFRS adoption in Malaysia has more significant. However, empirical evidence showed that the post period of mandatory IFRS evidently no significant difference level of earnings management practice. This result indicates that the IFRS adoption cannot reduce managerial discretion yet and the possibility for EM manipulation for Malaysian companies. Implication/Application: This finding has critical implications for regulators and policymakers, that the consequences of IFRS adoption do not increase the quality of financial reporting when EM practices still continue in the different forms. Novelty/Originality of this study: This study gives empirical evidence that there are differences in relationship level between audit quality and earnings management in the period before and after IFRS mandatory adoption in Malaysia companies.

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Some empirical evidence on the relationship between inventory management and social responsibility

Journal of Governance and Regulation ◽

10.22495/jgr_v2_i3_c1_p2 ◽

2013 ◽

Vol 2 (3) ◽

pp. 98-106 ◽

Cited By ~ 1

Author(s):

Khaled Elsayed

Keyword(s):

Supply Chain ◽

Social Responsibility ◽

Empirical Evidence ◽

Inventory Management ◽

Emerging Market ◽

Developed Countries ◽

Listed Firms ◽

Corporate Social ◽

The Cost ◽

The Relationship

Despite the crucial role that inventory plays in supply chain management (SCM), research that examines the relationship between inventory and corporate social responsibility (CSR) is rare. This is surprising given the evidence that inventory represents a huge source of cost, a matter that is often reported as a major impediment in practicing social responsibility in SCM. As such, this paper fills this gape in literature by examining directly the effect of inventory management on CSR. Maximum-likelihood ordered logistic regression was performed on a sample of 38 Egyptian listed firms during the period from 2007 to 2010. The results demonstrate that inventory management exerts a positive and significant coefficient on CSR. Further analysis shows that inventory management cannot be safely dropped from model of analysis. Rather, inventory management does add something unique in explaining differences in CSR. For practitioners interested in optimizing their firms’ values, thinking in managing supply chain imperatives, and specially inventory, in terms of social responsibility may guide them to build up a stock of reputational capital that can be used, in turn, to increase the cost of their rivals. This study, to the best of knowledge, is the first one that offers empirical evidence regarding the effect of inventory management on CSR. Moreover, the paper adds to both SCM and CSR literature by providing empirical evidence from Egypt as an emerging market, where much of the existing evidence reflects experience from developed countries

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CFO attributes and accounting conservatism: evidence from Malaysia

Pacific Accounting Review ◽

10.1108/par-07-2020-0088 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Ismaanzira Ismail ◽

Rohami Shafie ◽

Ku Nor Izah Ku Ismail

Keyword(s):

Propensity Score ◽

Financial Reporting ◽

Design Methodology ◽

Audit Quality ◽

Education Level ◽

Accounting Conservatism ◽

Chief Financial Officer ◽

Content Type ◽

Listed Firms ◽

Emerging Country

Purpose This paper aims to examine whether conditional conservatism is affected by chief financial officer (CFO) attributes as this issue is understudied in Malaysia. Given that CFOs have a direct responsibility for financial reporting, therefore, their individual attributes are important in influencing conservatism in financial reporting. Design/methodology/approach This study uses non-financial listed firms in the Main Market of Bursa Malaysia from the years 2016 until 2019. Findings The results show that CFOs’ attributes, namely, gender, age, education level and ethnicity, affect earnings conservatism. To test for robustness, the authors use difference-in-difference, propensity score-matching and unconditional conservatism, namely, market-to-book ratio and the authors find the results hold with an exception for age and education level. Further, the effect of these attributes is more profound in non-Big4 audited firms, suggesting that CFO attributes act as a substitute mechanism for lower audit quality. Originality/value This study complements existing studies by documenting the first evidence on the significant effects of CFOs’ attributes in influencing accounting conservatism in an emerging country, namely, Malaysia. This is the first paper, to the humble knowledge, that examines CFOs’ attributes on accounting conservatism in Malaysia.

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CSR reporting and ownership structure: Evidence from Italian listed companies

Corporate Ownership and Control ◽

10.22495/cocv17i3art11 ◽

2020 ◽

Vol 17 (3) ◽

pp. 146-157 ◽

Cited By ~ 2

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.

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THE EFFECT OF GOOD CORPORATE GOVERNANCE MECHANISM AND CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE ON TAX AVOIDANCE WITH COMPANY SIZE AS MODERATING VARIABLES

EPRA International Journal of Multidisciplinary Research (IJMR) ◽

10.36713/epra8517 ◽

2021 ◽

pp. 56-71

Author(s):

Hasian Purba

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Empirical Evidence ◽

Firm Size ◽

Audit Committee ◽

Audit Quality ◽

Tax Avoidance ◽

Negative Direction ◽

Corporate Social ◽

The Relationship

Taxes are the largest source of state revenue which functions as a source of funds intended for financing government expenditures and as a tool to regulate and implement policies in the social and economic fields and are used for the greatest welfare of the people. Therefore, corporate and individual taxpayers are expected to comply with their tax obligations voluntarily and comply with tax regulations. Taxpayer non-compliance can cause disruption to State finances. One of the ways of non-compliance is done by means of tax avoidance. The objectives of this study are as follows: 1) To find empirical evidence regarding the effect of independent boards of commissioners on tax avoidance; 2) Finding empirical evidence regarding the effect of the audit committee on tax avoidance; 3) Finding empirical evidence regarding the effect of audit quality on tax avoidance; 4) Finding empirical evidence regarding the effect of disclosure of corporate social responsibility on tax avoidance; 5) Finding empirical evidence regarding the extent to which firm size can moderate the relationship between independent boards of commissioners and tax avoidance; 6) Finding empirical evidence regarding the extent to which firm size can moderate the relationship between the audit committee and tax avoidance; 7) Finding empirical evidence regarding the extent to which firm size can moderate the relationship between audit quality and tax avoidance; and 8) Finding empirical evidence regarding the extent to which firm size can moderate the relationship between disclosure of corporate social responsibility and tax avoidance. This type of research used in this research is casual associative research (causal associative research). The population in this study were all manufacturing companies listed on the Indonesia Stock Exchange for the 2015-2019 period. The sample selection was done by using purposive sampling method. The analytical method used to test the hypothesis is Moderated Regression Analysis (MRA). The results showed that: 1) The independent board variable has no effect on tax avoidance in a positive direction; 2) The audit committee variable has no effect on tax avoidance in a negative direction; 3) The audit quality variable has no effect on tax avoidance in a negative direction; 4) The variable of corporate social responsibility disclosure has a negative effect on tax avoidance; 5) The size of the company is able to moderate the relationship between the independent board of commissioners and tax avoidance in a negative direction; 6) The size of the company is unable to moderate the relationship between the audit committee and tax avoidance in a negative direction; 7) The size of the company is not able to moderate the relationship between audit quality and tax avoidance in a positive direction; and 8) Company size is able to moderate the relationship between disclosure of corporate social responsibility and tax avoidance in a negative direction.

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The Relation Between Earnings Quality and Cost of Equity and the Role of Ownership Concentration: Evidence from Italy

The International Journal of Accounting ◽

10.1142/s1094406021500104 ◽

2021 ◽

pp. 2150010

Author(s):

Claudia Frisenna ◽

Daniele Greco ◽

Davide Rizzotti

Keyword(s):

Earnings Quality ◽

Negative Relationship ◽

Ownership Concentration ◽

Cost Of Equity ◽

Quality Cost ◽

Listed Firms ◽

Concentrated Ownership ◽

Italian Context ◽

The Relationship

This study aims to replicate the analysis of the relationship between earnings quality and cost of equity in the Italian context, a context characterized by high ownership concentration and weak investor protection dominated by the type II agency problem. We hypothesize a different intensity of the earnings quality–cost of equity relation between concentrated-held firms and dispersed-held ones. The analysis is based on a sample of 774 firm-year observations from 128 Italian nonfinancial listed firms, from 2011 to 2017. Empirical results confirm the existence of a negative relationship between earnings quality and cost of equity. Moreover, findings show that in Italy, this relation is stronger for firms with concentrated ownership and weaker for firms with more dispersed ownership. Consistent with our hypothesis, this finding suggests that ownership structure affects the sensitivity of the earnings quality–cost of equity relationship.

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