Determinants of Auditor Choice in Non-Financial Listed Firms on the Vietnamese Stock Market

2022 ◽  
Vol 13 (2) ◽  
pp. 0-0
Keyword(s):  
Firm Growth ◽  
Positive Relationship ◽  
Negative Relationship ◽  
Financial Statements ◽  
Regulatory Environment ◽  
Listed Firms ◽  
Auditor Choice ◽  
Audit Firms ◽  
Size Firm ◽  
Selection Of

Audit plays an important role in maintaining and issuing high-quality financial statements. This article investigates the factors that can affect auditor choice in developing countries. The authors utilize STATA to test Binary Logistic on a sample of Vietnamese listed firms data during the period between 2014 and 2017. These studies have examined the characteristics of the firm itself or the client's characteristics, prompting the process of selecting an auditor in the same regulatory environment. The results present that there is a positive relationship between firm size, firm growth, and auditor choice. While financial leverage has a negative relationship with the selection of audit firms.

scholarly journals Liquidity, Growth and Profitability of Non-financial Public Listed Malaysia: A Malaysian Evidence

2019 ◽  
Vol 10 (3) ◽  
pp. 194
Author(s):  
Mazurina Mohd Ali ◽  
Nik Noor Ayu Nik Hussin ◽  
Erlane K Ghani
Keyword(s):  
Firm Growth ◽  
Positive Relationship ◽  
Negative Relationship ◽  
Sustainable Growth ◽  
Return On Equity ◽  
Listed Firms ◽  
Financial Firms ◽  
Strong Positive Relationship ◽  
Sustainable Growth Rate ◽  
The Relationship

This study examines the relationship between liquidity, growth and profitability of non-financial firms listed on the Bursa Malaysia. Specifically, this study examines the relationship between liquidity and growth on profitability for 50 non-financial public listed firms in Malaysia. Using panel data technique on 250 observations across a five-year period, this study shows that liquidity has a strong positive relationship with profitability in terms of return on asset of the firms. However, liquidity in terms of quick ratio has no impact on profitability. This study also shows that firm growth in terms of sales growth has a negative relationship with profitability. However, this study shows that liquidity and growth in general do not influence profitability in terms of return on equity, although the result shows that sustainable growth rate has a positive relationship on profitability. This study highlights the importance of these measures in measuring performance. The findings in this study provide guidelines to the firms on the measures that best to be used in evaluating performance so that appropriate strategies can be adopted to increase performance.

Do CEO Political Connections and Firm Social Responsibility Affect Debt Level?

2020 ◽  
Vol 2 (2) ◽  
pp. 17-34
Author(s):  
Mohamed Ali Azouzi
Keyword(s):  
Social Responsibility ◽  
Positive Relationship ◽  
Negative Relationship ◽  
Political Connections ◽  
Political Connection ◽  
External Funding ◽  
Debt Level ◽  
The Social ◽  
Corporate Social ◽  
Selection Of

The objective of this study was to describe the effect of CEO political connection and firm social responsibility on debt access. These constructions have been evaluated in Tunisian firms. The results showed the presence of a positive relationship between political connection, corporate social responsibility, and the debt level. The authors also verified the presence of a negative relationship between political connection and the social responsibility of Tunisian companies. This research has shown how political connection and social responsibility improve the image of the company and facilitate their access to external funding methods. Tunisian companies are advised to know the importance of political connection and social responsibility in the selection of their leaders.

scholarly journals Effect of Firm Size Firm Growth Firm Age and Independent Commissioner on Intellectual Capital Disclosure in Banking Companies Listed on the Indonesia Stock Exchange in the period 2014 – 2018

Academia Open ◽  
2021 ◽  
Vol 3 ◽  
Author(s):  
Lailatul Khosi'ah ◽  
Sriyono
Keyword(s):  
Panel Data ◽  
Firm Size ◽  
Intellectual Capital ◽  
Firm Growth ◽  
Stock Exchange ◽  
Financial Statements ◽  
Firm Age ◽  
Panel Data Regression ◽  
Data Regression ◽  
Size Firm

The purpose of the study was to determine and analyze the effect of Firm Size, Firm Growth, Firm Age and Independent Commissioner on Intellectual Capital Disclousure partially and simultaneously to determine a model that can be used to measure Intellectual Capital Disclousure in companies by using panel data regression in Registered Banking companies on the Indonesia Stock Exchange. This study applies quantitative method and the object of this research is done by population and sample randomly (purposive sampling), which are 11 consumer goods companies that were Listed on the Indonesia Stock Exchange in the period 2014 - 2018. The technique of collecting data used annual financial statements from the period 2014 - 2018 and analysis used panel data regression method with common model approach using Eviews 9 program.The results of this study showed that simultaneously and partially variables Firm Size, Firm Growth, Firm Age and Independent Commissioner have a significant effect on Intellectual Capital Disclousure

How Do Audit Workpaper Reviewers Cope with the Conflicting Pressures of Detecting Misstatements and Balancing Client Workloads?

2010 ◽  
Vol 29 (2) ◽  
pp. 27-43 ◽  
Author(s):  
Christopher P. Agoglia ◽  
Joseph F. Brazel ◽  
Richard C. Hatfield ◽  
Scott B. Jackson
Keyword(s):  
Audit Quality ◽  
Financial Statements ◽  
Regulatory Environment ◽  
Electronic Interaction ◽  
Audit Firms ◽  
Audit Efficiency ◽  
Audit Effectiveness

SUMMARY: The proliferation of electronic workpapers at audit firms allows audit managers and partners the choice of interacting electronically with their audit teams, as opposed to communicating with them in person. Prior research indicates that in-person discussion during review positively impacts audit effectiveness, while electronic review may improve audit efficiency. Thus, the choice of review format can be viewed as both a crucial and controllable audit input that can affect audit quality and, in turn, the reliability of financial statements. Still, little is known about how this decision is made. We conduct a survey and an experiment to extend the audit literature by examining reviewers’ choice of review format and by considering factors that influence this important choice. Survey evidence suggests that reviewers perceive in-person interaction during review as more effective and electronic interaction as more convenient. Given these findings, we conduct an experiment that explores whether misstatement risk and workload pressure influence the choice of review method. We find that these factors interact to affect reviewer behavior. Specifically, workload pressure can increase the likelihood of electronic review, but only when misstatement risk is low. When risk is high, reviewers choose to employ in-person reviews regardless of workload pressures. These findings are particularly relevant in light of changes in the regulatory environment that both emphasize the auditor’s role in detecting fraud/errors and exacerbate traditional workload pressures during busy times of the year. Our results suggest that reviewers cope with these conflicting pressures by choosing alternative review formats.

Ownership Concentration, Family Control, and Auditor Choice

2018 ◽  
Vol 9 (2) ◽  
pp. 40-48
Author(s):  
Mohammad Amoonejad ◽  
Mehdi Safari Geraily
Keyword(s):  
Logistic Regression Model ◽  
Positive Relationship ◽  
Stock Exchange ◽  
Ownership Concentration ◽  
High Quality ◽  
Family Control ◽  
Quality Audit ◽  
Auditor Choice ◽  
Audit Firms ◽  
The Relationship

The present study investigates the relationship between ownership concentration and family control, with the choice of high-quality auditors. For this purpose, a sample of 94 firms listed in the Tehran Stock Exchange during the years 2011 to 2015 were selected and the research hypotheses were tested using logistic regression model. The findings indicate that there is a significant positive relationship between ownership concentration and the choice of high-quality audit firms. However, there was not any evidence of a significant relationship between family ownership and a choice of high quality audit firms. The findings, in addition to filling the Empirical gap in this area can be useful for investors, the Tehran Stock Exchange and other stakeholders.

scholarly journals Managerial ownership and firm performance on selected JSE listed firms

2015 ◽  
Vol 12 (3) ◽  
pp. 233-241 ◽  
Author(s):  
Sandisiwe Zondi ◽  
Mabutho Sibanda
Keyword(s):  
Firm Performance ◽  
Least Squares ◽  
Agency Theory ◽  
Positive Relationship ◽  
Negative Relationship ◽  
Managerial Ownership ◽  
Retail Sector ◽  
Regression Analyses ◽  
Listed Firms ◽  
And Performance

This paper investigates if there is a relationship between managerial ownership and firm performance in selected firms listed on the JSE, and if so, what that relationship is. The study conducts regression analyses over a sample of 23 retail sector firms, observing data stretching from 2010 to 2013. The results are found to be robust. The results suggest that the hypothesis that a positive relationship exists between managerial ownership and performance be rejected as a negative relationship is found. Instead, the results of a two-stage least squares (2SLS) analysis find that managerial ownership does not impact firm performance in any direction. Overall the results of the study do not support the agency theory, as aligning the interests of managers and shareholders does not improve firm performance, at least within the retail sector

scholarly journals DETERMINASI OPINI AUDIT DENGAN PENEKANAN GOING CONCERN PADA PERUSAHAAN MANUFAKTUR DI BURSA EFEK INDONESIA

2017 ◽  
Vol 2 (2) ◽  
pp. 267
Author(s):  
Hendra Firdaus
Keyword(s):  
Positive Relationship ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Financial Statements ◽  
Manufacturing Companies ◽  
Study Objective ◽  
Audit Opinion ◽  
Going Concern ◽  
Going Concern Opinion ◽  
A Company

ABSTRACT Going concern opinion accepted by a company represents the condition and events which arises auditor’s hesitation of the company’s going concern. Going concern audit opinion can be used as early warning to the user of financial statements in order to prevent mistakes on decision making. A number of research has been conducted concerning factors that influence to going concern audit opinion. Yet, its result keeps showing inconsistency. This study objective is to reinvestigate factors that influence going concern audit opinion. The factors used on this research are liquidity, leverage, profitability, company’s size, company’s growth, audit lag, and auditor client tenure.This research using sample of manucaturing companies listed on Indonesia Stock Exchange during 2012-2016. Based on purposive sampling, there are 30 manufacturing companies which fulfilled the sample requirements. Hypotesis testing on this research was done by the logistic regression analysis.The hypotesis testing showed that leverage have positive relationship to going concern audit opinion. Variables of profitability have negative relationship to going concern audit opinion. Variables of liquidity, company’s size, company’s growth, audit lag  and auditor client tenure have no relationship to going concern audit opinion.

scholarly journals Investigating factors that influence Malaysian auditors’ ethical sensitivity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Razana Juhaida Johari ◽  
Md. Mahmudul Alam ◽  
Jamaliah Said
Keyword(s):  
Financial Reporting ◽  
Positive Relationship ◽  
Negative Relationship ◽  
Ethical Culture ◽  
Ethical Sensitivity ◽  
Primary Role ◽  
Fraudulent Financial Reporting ◽  
Content Type ◽  
Significant Positive Relationship ◽  
Audit Firms

Purpose The primary role of auditors is to offer fiduciary services to society and users of financial reporting. With this role, users placed their trust and depend on the ability and judgement made by the auditors during their auditing works. However, recent financial scandals involving high profile companies frustrated the public’s expectations, particularly in Malaysia. It is claimed that auditors are not having ethical sensitivity while executing their task in mitigating fraudulent financial reporting. Therefore, this study aims to examine the influences of ethical orientation, locus of control and the firm’s ethical culture on the auditors’ ethical sensitivity in Malaysia. Design/methodology/approach This study collected primary data based on a questionnaire survey among audit firms in the Klang Valley area and registered with Malaysian Institutes of Accountants. Findings The results showed ethical sensitivity has a significant negative relationship with relativism and in some cases has a significant positive relationship with idealism. Moreover, it found a significant positive relationship between ethical sensitivity and ethical culture. Originality/value This paper provides benefit to the audit firms, professional bodies, policymakers and academia in understanding the factors that might increase the sensitivity of auditors in dealing with ethical issues that could lead to fraudulent financial reporting in the company.

Market Competition, Managerial Incentives and Agency Cost

2019 ◽  
Vol 21 (4) ◽  
pp. 937-955 ◽  
Author(s):  
Rayenda Khresna Brahmana ◽  
Hui San Loh ◽  
Maria Kontesa
Keyword(s):  
Positive Relationship ◽  
Market Competition ◽  
Managerial Incentives ◽  
Agency Cost ◽  
Product Market Competition ◽  
Director Compensation ◽  
Listed Firms ◽  
Board Of Director ◽  
Competitive Firm ◽  
Size Firm

This study investigates the determinants of board of director compensation from the view of strategic management. Specifically, this study examines the association between product market competition and directors’ compensation for a sample of 524 listed firms in Malaysia from 2010 to 2014. We find that there is a positive relationship between a competitive firm and its compensation to its directors. Our research indicates that managerial incentives reflect more of talent appreciation, rather than purely for acknowledging better performance or a bigger size firm. This research contests the use of agency theory and managerialism in explaining directors’ compensation, especially for the developing country context of Malaysia. Our findings also imply that firms may pay higher compensation in a competitive market.

scholarly journals Factors affecting financial distress: The case of Malaysian public listed firms

2011 ◽  
Vol 8 (4) ◽  
pp. 345-351 ◽  
Author(s):  
Chan Kok Thim ◽  
Yap Voon Choong ◽  
Chai Shin Nee
Keyword(s):  
Financial Distress ◽  
Positive Relationship ◽  
Negative Relationship ◽  
Factors Affecting ◽  
Corporate Managers ◽  
Listed Firms ◽  
Coverage Ratio ◽  
Dependent Variables ◽  
Equity Ratio

A sample of 101 companies is selected randomly from Bursa Malaysia during the period 2005-2009 where two models are used to analyze the relationships between financial distress and firms’ characteristics and risk. The dependent variables are long-term debt to total equity ratio and short-term debt to total equity ratio. The independent variables are profitability, liquidity, firm size, solvency, growth and risk. Size is found to be significant and has a positive relationship with financial distress. Interest coverage ratio has a positive relationship with financial distress, while growth of operating profits has a negative relationship with financial distress. Corporate managers should use these indicators to detect early signs of financial distress and take innovative actions to prevent such occurrences.

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