scholarly journals MODERATING ROLE OF SHARIAH COMMITTEE QUALITY ON THE RELATIONSHIP BETWEEN AUDIT COMMITTEE AND MALAYSIAN TAKAFUL PERFORMANCE

2020 ◽  
Vol 2 (01) ◽  
pp. 19
Author(s):  
Monther Eldaia ◽  
Saddam Ali Shatnawi ◽  
Mustafa Mohamad Hanefah ◽  
Ainulashikin Binti Marzuki
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Financial Reporting ◽  
Audit Committee ◽  
Management Practices ◽  
Governance Structure ◽  
General Context ◽  
Financial Reports ◽  
Control Body ◽  
The Relationship

The moderating effect of Shariah Committee Quality (SCQ) on the relationship between Audit Committee (AC) characteristics and Malaysian Takaful performance remains a challenge that is yet to be resolved. Malaysia plays a leader role in Muslim countries in Islamic Finance especially in Takaful industry and Shariah committee roles and duties. AC characteristics have a significant effect on corporate financial performance. The fundamental AC role is to supervise the corporate’s financial reporting practice, review of financial reports, auditing practice, internal accounting controls, and risk management practices. AC characteristics plays a crucial role in the overall Malaysian Takaful companies which is supposed to enhance financial performance. Hence, SCQ as part of the internal governance structure and control body of the institution, thereby, ensure Shariah compliance in all transactions and activities, and enhancing the credibility of institutions in the eyes of its shareholders and customers. SCQ can potentially moderate the relationship between AC and Malaysian Takaful performance. As an important mechanism of Corporate Governance (CG), In addition, agency theory and stewardship theory were used to develop the hypotheses.  Several results of the previous literature were found fraternized, and inconsistent regarding the SCQ effect on firm performance or its effect on AC characteristics in general context, while the literature on Malaysia context remain scarce. It is expected that this SCQ moderation may considerably improve corporate performance by determining the strength or weakness of the relationship between AC characteristics and firm performance. Therefore, this paper conceptualized that ‘SCQ’ moderates the relationship between AC Chairman Specialization, Shariah Background, AC Independence and Meeting frequency, and Malaysian Takaful performance.

The relationship between women’s presence in corporate positions and firm performance

2018 ◽  
Vol 10 (1) ◽  
pp. 83-100 ◽  
Author(s):  
Jorge Moreno-Gómez ◽  
Jonathan Calleja-Blanco
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Financial Performance ◽  
Family Firms ◽  
Developing Economies ◽  
Governance Structure ◽  
Corporate Governance Structure ◽  
Content Type ◽  
Top Executive ◽  
The Relationship

Purpose The purpose of this paper is to analyze, in the Colombian developing context, the relationship between the presence of women in corporate positions and the financial performance of the company and to know if there are differences between family and non-family firms. Design/methodology/approach Building on the contingency theory of leadership, which emphasizes that leader’s personality and the situation in which that leader operates influences corporate decision-making, the authors use panel data models on a sample of 54 Colombian public businesses for the period 2008-2015 to test the proposed hypotheses on the relationship between women´s presence in corporate governance positions and financial performance, as well as the difference between family and non-family firms. Findings The results support that women´s presence in corporate governance positions is positively associated with firm performance. More concretely, the authors find a relationship between women at the top corporate governance structure (as part of the board of directors, top management team and chief executive officer) and firm profitability. Results also indicate that family business, as a type of organization, (negatively) moderates the positive relationship between female participation in top executive positions (board and top executive team) and firm performance. Research limitations/implications First, this study is limited to women in corporate positions in large companies listed on the Colombia Stock Exchange, and thus, generalizability for smaller entities may be limited. Second, data limitations do not allow us to investigate ways in which women’s presence in corporate governance structures contributes to improve firm goals. Practical implications The authors provide support to the hypothesis that positively relates women’s presence in corporate governance positions and firm performance for the case of Colombia. This serves as a guidance to Colombian regulators, corporate decision-makers and policy-makers to promote the inclusion of women in top hierarchical structures through either mandatory laws or recommendation. Originality/value Few studies have addressed the women´s presence in corporate governance positions and contribution to firm performance in developing economies. This study contributes to better understand how women impact performance in contexts where women are underrepresented in corporate governance structure and where there are no laws that pressure firms to appoint women in corporate governance positions.

scholarly journals Audit Committee Characteristics and Earnings Management: The Case of Bahrain

2017 ◽  
Vol 7 (1) ◽  
pp. 12
Author(s):  
Omar Issa Juhmani
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Audit Committee ◽  
Management Practices ◽  
Emerging Market ◽  
Control Variable ◽  
Business Environment ◽  
Good Opportunity ◽  
Audit Firm ◽  
The Relationship

This study examines the effectiveness of some audit committee (AC) characteristics to monitor management behavior with the respect to their incentives to manage earnings. Bahraini listed companies on Bahrain Bursa for the year 2012 to 2014 have been investigated to analyze the relationship between AC characteristics and earnings management. The AC characteristics examined are AC independence, AC size, AC meetings and AC financial experts. Multivariate regression modelis used to examine the relationship between earnings managementasdependent variable and AC characteristics as independent variables and other firm-specific attributes, as control variables. As a small developing market, Bahrain’s unique business environment and context offer a good opportunity and provides a useful setting for examining the effectiveness of AC characteristics in detecting and preventing earnings management practices. The results show that discretionary accruals as a proxy for earnings management is negatively associated with AC size and AC financial experts, but positively associated audit firm size as control variable. However, the results do not show a significant relationship between AC independence, AC meetings, company size, leverage and earnings management. This study extends the literature on the monitoring function of the AC on earnings management, and contributes geographically to the financial reporting process and earnings management literatures by analyzing data from an emerging market and providing useful information for the corporations, accounting profession and the regulators on the effective practice of ACs.

scholarly journals Do audit committee characteristics of Bahraini listed companies have an effect on the level of internet financial reporting?

2016 ◽  
Vol 13 (3) ◽  
pp. 131-147 ◽  
Author(s):  
Sara AbdulHakeem Saleh AlMatrooshi ◽  
Abdalmuttaleb M. A. Musleh Al-Sartawi ◽  
Zakeya Sanad
Keyword(s):  
Corporate Governance ◽  
Literature Review ◽  
Financial Reporting ◽  
Audit Committee ◽  
Positive Relationship ◽  
Listed Companies ◽  
Financial Information ◽  
The Internet ◽  
Regression Test ◽  
The Relationship

Corporate Governance and IFR are influential topics that need to be addressed nowadays due to its importance. Especially since companies are growing and extending globally. This research is conducted in Kingdom of Bahrain through the year 2014, where it investigates the relationship between Audit Committee characteristics as a tool of CG and IFR. Literature review has been conducted, not to mention Multi-regression test was used to evaluate the relationship between Audit Committee characteristics and IFR for Bahraini listed companies. The results have showed that the relationship between Audit Committee characteristics and IFR is negative, which indicates that the Audit committee characteristics have no influence over the disclosure of financial information over the internet. However, Frequency of meeting of the board and Big4 resulted in a positive relationship with internet financial reporting. The study ends with a main conclusion and recommendation that contain certain steps and advices of disclosing financial information in an appropriate way through the internet in order to improve the relationship between Audit committee characteristics and IFR.

scholarly journals FINANCIAL PERFORMANCE: THE ROLE OF GOOD CORPORATE GOVERNANCE (CASE STUDY IN THE MANUFACTURING COMPANIES OF BASIC AND CHEMICAL INDUSTRIAL SECTORS REGISTERED ON THE INDONESIA STOCK EXCHANGE 2016-2018)

2020 ◽  
Vol 18 (2) ◽  
pp. 36
Author(s):  
Ari Susanti ◽  
Sri Lestari
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Of Directors ◽  
Quantitative Research ◽  
Audit Committee ◽  
Stock Exchange ◽  
Manufacturing Companies ◽  
Financial Reports ◽  
Industrial Sectors ◽  
Good Corporate Governance

This study aims to examine the effect of implementing good corporate governance as measured by an independent board of commissioners, board of directors, and audit committee on financial performance measured using Return of Equity (ROE). This research uses quantitative research. The population in this study are manufacturing companies in the basic and chemical industry sectors that consistently publish financial reports on the Indonesia Stock Exchange from 2016 to 2018. Based on the purposive sampling method, a sample of 11 companies is obtained each year to obtain 33 observational data. The data in this study use warpPLS 6.0 software. The results of this study indicate that the independent board of commissioners, the board of directors affect the financial performance, while the audit committee has no effect on financial performance.

scholarly journals The Influence of KAP Size, Institutional Ownership, and Audit Committee on The Quality of Financial Statements

2021 ◽  
Vol 4 (1) ◽  
pp. 82
Author(s):  
Adris Kuncoro ◽  
Dhini Suryandari
Keyword(s):  
Audit Committee ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Institutional Ownership ◽  
Financial Statements ◽  
Financial Reports ◽  
The Relationship ◽  
Positive Effect ◽  
Descriptive Statistical Analysis

This research aims to examine the relationship between KAP size, institutional ownership, and the audit committee on the quality of financial reports. 616 Indonesian Stock Exchange (IDX) companies in 2018 became the population in this study. Purposive sampling as a sampling technique resulted in 547companies. Using inferential logistic regression analysis and using descriptive statistical analysis hypothesis testing methods with IBM SPSS version 25 tools. This study found that the KAP size and the audit committee has a positive effect on the quality of financial reports. Institutional ownership does not affect the quality of financial reports. Simultaneously, KAP size, institutional ownership, and audit committee influence the quality of financial reports. This study concludes that partially, KAP size and audit committee has a positive effect on the quality of financial reports. Simultaneously, KAP size, institutional ownership, and audit committee affect the quality of financial reports. Further research suggests using other proxies, other periods, and other variables.

scholarly journals Risk Governance Structure and Firm Performance: An (Exploratory) Empirical Study in Indian Context

2018 ◽  
Vol 1 (2) ◽  
Author(s):  
M.V. Shivaani
Keyword(s):  
Firm Performance ◽  
Governance Structure ◽  
Risk Governance ◽  
Governance Structures ◽  
Economic Implications ◽  
Leverage Ratio ◽  
Governance Index ◽  
Difference Gmm ◽  
The Impact ◽  
The Relationship

The study attempts to explore the relationship between riskgovernance structureand firm performance. In perhaps the first of its kind attempt, a normative framework for risk governance structures is being put forward. Based on the framework, an index indicating strength/quality of risk governance structures is proposed. Then, the impact of risk governance structure on firm performance is gauged. To this end, the study makes use of constituents of S&P CNX500 index and covers a ten year period from April 1, 2005 to March 31, 2015.To control for potential endogeneity among variables of interest, the study makes use of a robust and reliable methodology,‘difference-GMM’. In addition, to ensure completeness of results, the study employs control variables such as recession dummy, firm’s age, size, and growth rate and leverage ratio. The results suggest that robust risk governance structures do not necessarily lead to better firm performance. In fact, risk governance index is negatively related to both ROA and ROE. The relationship is not statistically significant but has wide economic implications. A prominent implication being, mere constitution of risk management committee and appointment of CRO will not improve firm performance; regulators and companies need to ensure that governance structures are not too rigid, excessively risk averse and ineffective and inefficient in decision making. Given the simplicity and reliability of the proposed risk governance index, and the recommendations put forth in the paper, the study is expected to be of immense utility in an important yet neglected area of risk governance.

Intellectual capital in Ugandan service firms as mediator of board governance and firm performance

2014 ◽  
Vol 5 (3) ◽  
pp. 300-340 ◽  
Author(s):  
Stephen Korutaro Nkundabanyanga ◽  
Joseph M. Ntayi ◽  
Augustine Ahiauzu ◽  
Samuel K. Sejjaaka
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Predictor Variable ◽  
Mediating Effect ◽  
Board Governance ◽  
Content Type ◽  
Firm Financial Performance ◽  
Starting Point ◽  
The Relationship

Purpose – The purpose of this paper is to examine the mediating effect of intellectual capital on the relationship between board governance and perceived firm financial performance. Design/methodology/approach – This study was cross-sectional. Analyses were by SPSS and Analysis of Moment Structure on a sample of 128 firms. Findings – The mediated model provides support for the hypothesis that intellectual capital mediates the relationship between board governance and perceived firm performance. while the direct relationship between board governance and firm financial performance without the mediation effect of intellectual capital was found to be significant, this relationship becomes insignificant when mediation of intellectual capital is allowed. Thus, the entire effect does not only go through the main hypothesised predictor variable (board governance) but majorly also, through intellectual capital. Accordingly, the connection between board governance and firm financial performance is very much weakened by the presence of intellectual capital in the model – confirming that the presence of intellectual capital significantly acts as a conduit in the association between board governance and firm financial performance. Overall, 36 per cent of the variance in perceived firm performance is explained. the error variance being 64 per cent of perceived firm performance itself. Research limitations/implications – The authors surveyed directors or managers of firms and although the influence of common methods variance was minimal, the non-existence of common methods bias could not be guaranteed. Although the constructs have been defined as precisely as possible by drawing upon relevant literature and theory, the measurements used may not perfectly represent all the dimensions. For example board governance concept (used here as a behavioural concept) is very much in its infancy just as intellectual capital is. Similarly the authors have employed perceived firm financial performance as proxy for firm financial performance. The implication is that the constructs used/developed can realistically only be proxies for an underlying latent phenomenon that itself is not fully measureable. Practical implications – In considering the behavioural constructs of the board, a new integrative framework for board effectiveness is much needed as a starting point, followed by examining intellectual capital in firms whose mediating effect should formally be accounted for in the board governance – financial performance equation. Originality/value – Results add to the conceptual improvement in board governance studies and lend considerable support for the behavioural perspective in the study of boards and their firm performance improvement potential. Using qualitative factors for intellectual capital to predict the perceived firm financial performance, this study offers a unique dimension in understanding the causes of poor financial performance. It is always a sign of a maturing discipline (like corporate governance) to examine the role of a third variable in the relationship so as to make meaningful conclusions.

PENGARUH CORPORATE GOVERNANCE, KINERJA KEUANGAN,KEPEMILIKAN MANAJERIAL, UKURAN PERUSAHAAN TERHADAP KETEPATWAKTUAN PENYAMPAIAN LAPORAN KEUANGAN

2015 ◽  
Vol 11 (2) ◽  
pp. 107
Author(s):  
Kurniasih Jati Setyaningsih
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Financial Reporting ◽  
Audit Committee ◽  
Control Variable ◽  
Secondary Data ◽  
Financial Statements ◽  
Managerial Ownership ◽  
Control Variables ◽  
Before And After

; "> This study aimed to determine the effect of corporate governance, financial performance, managerialownership, the size of the company to the timeliness of financial reporting with the age of the firm asa control variable. Corporate governance is proxied by independent directors and audit committee,while the used financial performance ratios ROI. Company size used in this study using total assets.This study uses secondary data from ICMD and IDX. Of the 162 companies listed on the StockExchange, which can be used to study many as 100 companies by using logistic regression. Based onresearch that has been done before and after entering the control variables, it was found that theindependent commissioner, financial performance (ROI), firm size affects the timeliness of financialreporting. company’s age that is the control variables also affect the timeliness of financial reporting.Meanwhile the audit committee and managerial ownership does not affect the timeliness ofsubmission of financial statements. Thus it can be concluded that the larger and more long standingcompany, the more obedient to comply with regulations set by Bapepam.Keywords: corporate governance, financial performance, managerial ownership, company’s size,

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