Corporate Governance Characteristics and Audit Fees

The purpose of this chapter is to analyze the effect that corporate governance measures have in external audit fees in two countries where this matter is not much developed: Portugal and Spain. The analysis includes a sample of 39 listed companies on the Portuguese Stock Exchange and 104 listed companies on the Spanish Stock Exchanges for the years 2013 to 2015 using an OLS regression model. For the Spanish sample, the results show that the capital hold by the Board of Directors influence negatively external audit fees. The results are in accordance with the supplier perspective which states that better corporate governance practices decrease the control risk and, consequently, audit fees. On the other hand, the Board of Directors' diligence also affected external audit fees but positively, that is, the greater the number of meetings the greater the demand for an audit with quality which result in higher fees charged (demand perspective). For the Portuguese sample it can be observed that corporate governance characteristics do not affect external audit fees.

Download Full-text

The Relationship between Profitability and the Participation of Women in the Board of Directors of Listed Companies in Mexico

Equidad y Desarrollo ◽

10.19052/ed.4413 ◽

2018 ◽

pp. 33-55

Author(s):

María Luisa Saavedra García ◽

María Elena Camarena Adame

Keyword(s):

Board Of Directors ◽

Stock Exchange ◽

Listed Companies ◽

The Other ◽

Financial Leverage ◽

Lower Yield ◽

Participation Of Women ◽

The Board Of Directors ◽

The Relationship

The objective of this work was to determine if there is a relationship between profitability and the participation of women in the Council of Administration (CA) in companies listed on the Mexican Stock Exchange (BMV). We worked with a sample of 37 companies with the participation of women in the CA and with 32 companies where there is no participation of women in the CA; indicators were calculated for profitability and financial leverage. The findings show that the performance of the companies with the participation of women in the CA is more often measured with the Return on Invested Capital, and that they have less financial leverage at these companies, thus proving women’s aversion to taking risks, a variable that is linked to profitability and which would also explain the lower yield shown by the other three indicators of profitability.

Download Full-text

Audit Committee Effectiveness Among Malaysian Listed Companies

Malaysian Management Journal ◽

10.32890/mmj.3.2.1999.8561 ◽

2020 ◽

Author(s):

Shamsul Nahar Abdullah ◽

Ku Nor Izah Ku Ismail

Keyword(s):

Corporate Governance ◽

Audit Committee ◽

Stock Exchange ◽

Listed Companies ◽

The Other ◽

Interactive Effects ◽

Committee Chairman ◽

Kuala Lumpur ◽

Political Costs ◽

Leadership Structure

This study investigates further the previous paper by Shamsul Nahar and Al-Murisi (1997) by examining the interactive effects of the variables in that paper and introducing other variables associated with corporate governance and political costs. The present study postulated that percentage of external directors on audit committee interacted with the presence of an accountant on audit committee and with the number of years an audit committee in existence, respectively, to influence audit committee effectiveness. The study also posited that the interaction of the presence of an accountant on audit committee and the number of years an audit committee in existence positively and significantly influenced audit committee effectiveness. Addition. ally, the roles of leadership structure, audit committee chairman, and a firm's size on audit committee effectiveness were also investigated. Using a multiple regression from a sample consisting the Kuala Lumpur Stock Exchange listed companies, results showed that only a firm's size significantly influenced audit committee effectiveness in the predicted direction. Other variables, on the other hand, did not show any significant influence on audit committee effectiveness.

Download Full-text

Board of directors, performance and firm value in Brazilian listed state-owned enterprises

Brazilian Review of Finance ◽

10.12660/rbfin.v18n2.2020.80898 ◽

2020 ◽

Vol 18 (2) ◽

pp. 1

Author(s):

Carolina Coletta ◽

Roberto Arruda de Souza Lima

Keyword(s):

Corporate Governance ◽

Firm Performance ◽

Board Of Directors ◽

Firm Value ◽

Board Structure ◽

Agency Conflicts ◽

Governance Practices ◽

The Board Of Directors ◽

Structure Index ◽

Corporate Governance Practice

This paper investigates the relationship between the board of directors' structure and firm performance and the value of Brazilian listed state-owned enterprises (SOEs), from 2002 to 2017, totaling 327 observations using an unbalanced panel data with fixed and random effects regressions. The evolution of corporate governance practices adopted by the boards is presented for this period, using a Board Structure Index (BSI). The results indicate a significant positive relation between the board's structure and firm performance, measured by ROE and ROA, and firm value, measured by Tobin's q. These findings are consistent with corporate governance literature, in the sense that the board's role of monitoring management reduces agency conflicts. The results also show an improvement in adopting corporate governance practice on Brazilian SOEs' boards over the last decade.

Download Full-text

Implementing the board of directors’ mechanism – An empirical study of the listed firms in Libya

Corporate Board role duties and composition ◽

10.22495/cbv14i1art2 ◽

2018 ◽

Vol 14 (1) ◽

pp. 22-33 ◽

Cited By ~ 6

Author(s):

Jill Atkins ◽

Mohamed Zakari ◽

Ismail Elshahoubi

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Boards Of Directors ◽

Listed Companies ◽

Board Members ◽

Corporate Boards ◽

Listed Firms ◽

Stakeholder Groups ◽

The Board Of Directors ◽

Executive Managers

This paper aims to investigate the extent to which board of directors’ mechanism is implemented in Libyan listed companies. This includes a consideration of composition, duties and responsibilities of the board directors. This study employed a questionnaire survey to collect required data from four key stakeholder groups: Boards of Directors (BD), Executive Managers (EM), Regulators and External Auditors (RE) and Other Stakeholders (OS). The results of this study provided evidence that Libyan listed companies generally comply with the Libyan Corporate Governance Code (LCGC) requirements regarding the board composition: the findings assert that most boards have between three and eleven members, the majority of whom are non-executives and at least two or one-third of whom (whichever is greater) are independent. Moreover, the results indicate that general assemblies in Libyan listed companies are practically committed to the LCGC’s requirements regarding the appointment of board members and their length of tenure. The findings provide evidence that boards in Libyan listed companies are carrying out their duties and responsibilities in accordance with internal regulations and laws, as well as the stipulations of the LCGC (2007). Furthermore, the stakeholder groups were broadly satisfied that board members are devoting sufficient time and effort to discharge these duties and responsibilities properly. This study helps to enrich our understanding and knowledge of the current practice of corporate boards as a significant mechanism of corporate governance (CG) by being the first to address the board of directors’ mechanism in Libyan listed companies.

Download Full-text

PENGARUH MEKANISME GOOD CORPORATE GOVERNANCE TERHADAP KINERJA KEUANGAN PADAPERBANKAN YANG TERDAFTAR DI BURSA EFEK INDONESIA (BEI)

JWM (Jurnal Wawasan Manajemen) ◽

10.20527/jwm.v7i1.175 ◽

2019 ◽

Vol 7 (1) ◽

pp. 49

Author(s):

Mira Diyanty ◽

Meina Wulansari Yusniar

Keyword(s):

Corporate Governance ◽

Linear Regression ◽

Multiple Linear Regression ◽

Board Of Directors ◽

Audit Committee ◽

Stock Exchange ◽

Linear Regression Analysis ◽

Governance Mechanism ◽

Good Corporate Governance ◽

The Board Of Directors

The purpose of this study was to analyze the effect of the Good Corporate Governance mechanism on the board of commissioners, the board of directors, the proportion of independent commissioners, the audit committee, CAR on ROA. This study also uses a purposive sampling method for sampling. The analysis test used is multiple linear regression analysis. The population used by companies listed on the Indonesia Stock Exchange in the period 2011 - 2013 and which meet the sample selection criteria. The sample used was 25 companies. Data is collected through secondary data collection in the form of the company's annual report for the period 2011 - 2013 which is published on the Indonesia Stock Exchange. The research hypothesis was tested by multiple linear regression which had met the testing of classical assumptions. The results of the analysis show that the board of commissioners, the proportion of independent commissioners, audit committees, CAR does not significantly influence ROA while the board of directors has a positive and significant effect on ROA.

Download Full-text

The Effect of Company Size on the Relationship between Corporate Governance and Corporate Performance in the Iraqi Stock Exchange

Studies of Applied Economics ◽

10.25115/eea.v39i11.5993 ◽

2021 ◽

Vol 39 (11) ◽

Author(s):

Ghazwan Al-Shiblawi ◽

Dalal Mahdi ◽

Mohammed Mahdi

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Significant Relationship ◽

Corporate Performance ◽

Stock Exchange ◽

Institutional Ownership ◽

Company Size ◽

Statistical Population ◽

The Board Of Directors ◽

The Relationship

The aim of the present study is to assess The Effect of Company Size on the Relationship between Corporate Governance and Corporate Performance in the Iraqi Stock Exchange. The statistical population under study is listed companies of Iraq Stock Exchange and the number of companies studied in Iraq is 35, from 2015-2019. The results concluded that there is a statistically significant relationship between the change (increase) of institutional ownership and the performance of the company, and this relationship is direct, as well as the relationship between the change (increase) of institutional ownership and the performance of the company. It can change under the influence of the company's size, and this relationship is negative, meaning the larger the company's size, the weaker the relationship. At the same time, the existence of a relationship between changing the composition of the members of the Board of Directors and the performance of the company was not supported, as well as between changing (increasing) the independence of the Board of Directors and the performance of the company, in addition to the relationship between changing the composition of the Board of Directors. The independence of the Board of Directors and the performance of the company is not affected by the change in the size of the company

Download Full-text

Corporate Governance and Risk Management on Listed Banks, The Tanzania Perspective

Research in Business and Management ◽

10.5296/rbm.v8i1.18800 ◽

2021 ◽

Vol 8 (1) ◽

pp. 27

Author(s):

Erick Lusekelo Mwambuli ◽

Avitus Mwebembezi Dominick

Keyword(s):

Risk Management ◽

Corporate Governance ◽

Board Of Directors ◽

Ownership Structure ◽

Management Practices ◽

Stock Exchange ◽

Management Approach ◽

Financial Risks ◽

The Board Of Directors

The study was to assess on corporate governance and risk management in Tanzania. The study was guided by three objectives which were to assess if transparency, disclosure and audit have significant effect on risk management of the firm, to assess if the board of directors have significant effect on risk management of the firm and evaluate if the ownership structure have significant effect on risk management of the firm. Furthermore, we assess how corporate governance and particularly board of directors, ownership structure, transparency disclosure and audit can affect risk management practices in the context of Dar es Salaam stock exchange listed banks. By the use of a content in analysis approach, the level of exposing the risks in terms of likelihood, consequences of such risk and the strategies used for managing that risk were identified for each kind of risk by using attributes. The results show that corporate governance is related to board of directors, ownership structure, transparency, disclosure and audit play a positive significant and crucial role in establishing an integrative risk management approach. The results from data collected demonstrate that corporate governance has positive significant effect in determining the the good quality of risk management through the level of risk-taking in decisions, especially in terms of financial risks management.

Download Full-text

PENGARUH MEKANISME CORPORATE GOVERNANCE TERHADAP KINERJA KEUANGAN PERUSAHAAN KELUARGA DI INDONESIA

Jurnal Fokus Manajemen Bisnis ◽

10.12928/fokus.v10i1.1814 ◽

2020 ◽

Vol 10 (1) ◽

pp. 1

Author(s):

Adhitya Rechandy Christian Santoso

Keyword(s):

Corporate Governance ◽

Data Analysis ◽

Board Of Directors ◽

Sampling Method ◽

Stock Exchange ◽

Return On Assets ◽

The Board Of Directors ◽

Relationship Of ◽

The Relationship ◽

Positive Effect

This study discusses the application of corporate governance to the performance of family companies in Indonesia. The relationship of corporate governance in this study was proxied with an independent board of commissioners, the size of the board of directors, and the size of the audit board. The measurement of the financial performance of this study uses Return On Assets (ROA) with a sample of research companies listed on the Indonesia Stock Exchange in the 2014-2018 period.The sampling method in this study uses purposive sampling and data analysis using multiple linear regression with the help of SPSS 21.The results of data analysis, the proportion of independent commissioners and the size of the board of directors had a significant positive effect on the variable size of the audit board not having a significant effect.

Download Full-text

The impact of good corporate governance practices on financial reporting quality: Empirical evidence from Jordanian listed companies

Corporate Ownership and Control ◽

10.22495/cocv9i4c1art4 ◽

2012 ◽

Vol 9 (4) ◽

pp. 178-186 ◽

Cited By ~ 1

Author(s):

Khaled Erieg Abu-Risheh ◽

Mo’taz Amin Al-Sa’eed

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Financial Reporting ◽

Stock Exchange ◽

Reporting Quality ◽

Audit Committees ◽

Financial Reporting Quality ◽

Good Corporate Governance ◽

Governance Practices ◽

The Relationship

The main objective of this paper is to analyze the relationship between the good corporate governance practices on the financial reporting quality of Jordanian listed companies. Specifically, we focus on the board’s independence, board’s transparency, and separate audit committee. A listing of Share -Traded Jordanian Companies was available from the Amman Stock Exchange as of 31 December 2011. A total of (167) company shares were traded as of 31 of December 2011. It was decided to distribute (160) questionnaires to the related external auditors, the expertise members of the Audit Committees, and the Jordanian regulatory bodies that oversight the corporate reporting of those companies, which include the Jordanian Securities Commission, Insurance Commission, and Central Bank of Jordan. The empirical study is realized based on a sample of the companies listed on the Amman Stock Exchange. Our research results shows that the good corporate governance practices impact the financial reporting quality, were Independence is considered one of the determinants of the success of financial reporting quality (T = 3.709, 008) and (R= 0.676), in addition to that; the independent variables are able to explain the variance in the dependent variable, a multiple regression test was carried out to test the relationship between board of directors’ transparency, board of directors’ independence, and audit committees, and financial reporting quality (FRQ), they are able to explain nearly 0.805% (R=0.805% P< 0.000) of the variance in financial reporting quality. The correlation analysis allows testing the strength of relationships between several independent variables and one dependent variable, which is the case in this study. The results of correlation analysis shows that the relationships between boards of directors’ transparency, board of directors’ independence, and separate audit committees, and the dependent variable which is financial reporting quality (FRQ), are significant.

Download Full-text

Research on the Influence of the Characteristics of the Board of Directors of Listed Companies on the Growth of the Company

E3S Web of Conferences ◽

10.1051/e3sconf/202129202049 ◽

2021 ◽

Vol 292 ◽

pp. 02049

Author(s):

Gao Ruirui

Keyword(s):

Board Of Directors ◽

Listed Company ◽

Listed Companies ◽

Independent Directors ◽

Stock Exchanges ◽

Positive Correlation ◽

Board Characteristics ◽

The Board Of Directors ◽

Dynamic Perspective ◽

A Share

The board characteristics are an important factor affecting the growth of the company. This paper selects the data of A-share listed companies in the Shanghai and Shenzhen Stock Exchanges during the five-year period from 2014 to 2019, and analyzes whether the board characteristics will affect the growth of the company from a dynamic perspective. The research found that: ① the scale of the board of a listed company has an inverted U-shaped relationship with the company’s growth; ② the proportion of independent directors has a positive correlation with the company’s growth; ③ the director’s salary has a positive correlation with the company’s growth.

Download Full-text