THE IMPACT CORPORATE GOVERNANCE ON INTERNET FINANCIAL REPORTING: EMPIRICAL EVIDENCE FROM PALESTINE

The current research investigates whether the difference in the Internet Financial Reporting standard is clarified by corporate governance. A study was carried out on a selection of 48 companies listed on the 2019 Palestine Stock Exchange. An index was also selected from several previous studies to assess the standard of Internet financial reporting. One of the first analytical researches to investigate the relationship between corporate governance and Internet Financial Reporting in Palestine is the latest analysis. Firstly, the scope of disclosure of Internet Financial Reporting in Palestinian businesses appears to be limited. Second, the educational history of boards is greatly related to Internet Financial Reporting. Nevertheless, the board independence coefficient and board audit committee are negligible. Thirdly, an important element in strengthening internet financial reporting standards is a broad audit company. Fourthly, there is a strong positive correlation between the concentration of ownership and financial reporting on the Internet. Companies mainly held by stakeholders are more likely to reveal internet data and to strengthen the reports released. Finally, profitability and market capitalization have a direct connection with Internet Financial Reporting, and Internet Financial Reporting does not justify the composition of the board, board meetings, international investors, and business size.

Download Full-text

Corporate governance and compliance with IFRS 7

Managerial Auditing Journal ◽

10.1108/maj-08-2018-1969 ◽

2020 ◽

Vol 35 (3) ◽

pp. 448-474 ◽

Cited By ~ 1

Author(s):

Yosra Mnif ◽

Oumaima Znazen

Keyword(s):

Corporate Governance ◽

Financial Reporting ◽

Audit Committee ◽

Stock Exchange ◽

Reporting Standard ◽

International Financial Reporting Standard ◽

Content Type ◽

Ifrs 7 ◽

The Impact ◽

Mean Compliance

Purpose This paper aims to investigate the impact of the characteristics of two corporate governance mechanisms, namely, board of directors and audit committee (hereafter AC), on the level of compliance with International Financial Reporting Standard [hereafter International Financial Reporting Standards (IFRS)] 7 “Financial instruments: Disclosures” (hereafter FID). Design/methodology/approach Using a self-constructed checklist of 128 items, this research measures the compliance with IFRS 7 of 63 Canadian financial institutions listed on the Toronto Stock Exchange during a period of three years (2014-2016). Fixed effect panel regressions have been used to capture the individual effect present in authors’ data. Findings Empirical results show that the mean compliance level with IFRS 7 requirements is about 77 per cent and identify various areas of non-compliance. This level of compliance has a positive linkage with the board size and independence. Similarly, the AC independence and financial accounting expertise are shown to positively affect authors’ dependent variable. Nevertheless, CEO/chairman duality, AC size and meeting frequency are not significantly correlated with the level of compliance with IFRS 7. Originality/value This study expands prior compliance literature in the Canadian setting by examining the determinants of compliance with IFRS mandatory disclosures. Also, and to the best of the authors’ knowledge, this paper is among the first studies that have investigated the effect of corporate governance characteristics (hereafter CGC) on compliance with all IFRS 7 requirements in general.

Download Full-text

The Impact of Audit Committee Performance and Composition on Financial Reporting Quality in Jordan

International Journal of Financial Research ◽

10.5430/ijfr.v12n3p55 ◽

2021 ◽

Vol 12 (3) ◽

pp. 55

Author(s):

Qasim Ahmad Alawaqleh ◽

Nashat Almasri

Keyword(s):

Corporate Governance ◽

Financial Reporting ◽

Audit Committee ◽

Work Performance ◽

Stock Exchange ◽

Internal Audit ◽

Reporting Quality ◽

Financial Reporting Quality ◽

Governance System ◽

The Impact

The corporate governance literature indicates efforts to investigate the role of the audit committee (AC) in improving the financial reporting quality (FRQ) after the emergence of financial scandals in many countries in the world, inclusive Jordan. To date, empirical findings are inconclusive enough to address all audit committee characteristics regarding its competency and responsibilities by employing a questionnaire to collect data about this relationship. Thus, this study measures the correlation between AC (performance and composition) and FRQ of manufacturing corporations registered on the Amman Stock Exchange (ASE). To test this impact empirically, the target population was financial managers, audit committee members, and internal audit managers who are working in manufacturing corporations listed on the (ASE). According to the coefficient (β), the independent variables (Audit Committee Performance and Audit Committee Composition influence the dependent variable FRQ. This research recommends that firms enhance the audit committee work performance and composition to ensure audit committee members effectively enhance the FRQ audit committee is a vital mechanism of the firm's corporate governance system.

Download Full-text

ANALISIS PENGARUH KEBANGKRUTAN, AUDITOR SPESIALISASI INDUSTRI DAN CORPORATE GOVERNANCE TERHADAP FRAUDULENT FINANCIAL REPORTING

Jurnal Akuntansi Auditing dan Keuangan BALANCE ◽

10.25170/balance.v18i1.2297 ◽

2021 ◽

Vol 18 (1) ◽

pp. 27-51

Author(s):

Lamoza Ressidnarry Lamoza Ressidnarry ◽

Julianti Sjarief

Keyword(s):

Corporate Governance ◽

Financial Reporting ◽

Audit Committee ◽

Stock Exchange ◽

Selection Process ◽

Sample Selection ◽

Managerial Ownership ◽

Manufacturing Companies ◽

Fraudulent Financial Reporting ◽

The Difference

Fraudulent financial reporting often occurs in company management. Management who has a cooperation contract with the principal, there are often differences in interests between management and shareholders. The difference in interests makes it possible for management to commit fraud. Therefore, the factors that cause fraudulent financial reporting need to be known. This study aims to examine the effect of bankruptcy, auditors specializing in industry and corporate governance (consisting of managerial ownership, number of audit committee meetings and composition of independent commissioners). The population of this research is manufacturing companies in the consumer goods industry which are listed on the Indonesia Stock Exchange 2015-2018. Based on the purposive sampling method in the sample selection process, 38 companies were obtained as samples. Hypothesis testing is carried out by logistic regression analysis using the SPSS version 21 program. The results of this study are bankruptcy, managerial ownership and the composition of independent commissioners have an effect on fraudulent financial reporting. Meanwhile, auditors specializing in industry and the number of audit committee meetings have no effect on fraudulent financial reporting.

Download Full-text

Voluntary disclosures on control system over financial reporting and corporate governance mechanisms: Evidence from Poland

Journal of East European Management Studies ◽

10.5771/0949-6181-2020-4-698 ◽

2020 ◽

Vol 25 (4) ◽

pp. 698-729

Author(s):

Jacek Gad

Keyword(s):

Corporate Governance ◽

Control System ◽

Financial Reporting ◽

Capital Market ◽

Audit Committee ◽

Stock Exchange ◽

Supervisory Board ◽

Voluntary Disclosures ◽

Research Results ◽

The Impact

The paper presents the results of research on the mechanisms of corporate governance functioning on the Polish capital market. The purpose of this article is to identify the impact of selected internal mechanisms of corporate governance on the scope of disclosures on the control system over financial reporting. Disclosures were presented by public companies operating on the capital market with an insider model of corporate governance. The research covered 301 companies listed on the Warsaw Stock Exchange and their voluntary disclosures published in 2013. The results indicate that the scope of disclosures on the control system over financial reporting is positively correlated with the presence of audit committee and the share of independent supervisory board members in their total number. The obtained research results confirm the belief presented in the literature that in an insider model of corporate governance internal mechanisms affect the scope of voluntary corporate disclosures. In addition, research results indicate that the scope of voluntary disclosures depends on the size of the company.

Download Full-text

Effect of Audit Committee Expertise and Meeting on Earnings Quality in Indonesian Listed Companies: A Conceptual Approach

Journal of Accounting and Finance in Emerging Economies ◽

10.26710/jafee.v3i1.97 ◽

2017 ◽

Vol 3 (1) ◽

pp. 47-54

Author(s):

Lidya Primta Surbakti ◽

Hasnah Binti Shaari ◽

Hasan Mohammed Ahmed Bamahros

Keyword(s):

Corporate Governance ◽

Conceptual Framework ◽

Financial Reporting ◽

Audit Committee ◽

Stock Exchange ◽

Earnings Quality ◽

Empirical Studies ◽

Annual Reports ◽

Conceptual Approach ◽

The Impact

Purpose: The purpose of this paper will focus on monitoring and improving corporate governance through earnings quality. In particular, audit committee effectiveness is seen as a significant factor in ensuring effective corporate governance and in view of this, the aim of this paper is to develop a conceptual framework that will examine the impact expertise, meeting and meeting attendance on the earnings quality of companies. Methodology: Future empirical studies could be conducted quantitatively with secondary data. The report from annual reports of companies listed in Indonesia Stock Exchange (IDX) starting from the period of implementation of the new code on implementation guideline in 2013. Implication: In fact, the main issue was centered on financial reporting manipulations and there is need to examine and develop a mechanism that in addition, agency theory is expected to explain the above three factors in providing explanation to accounting information that relates to the earnings quality under study. Finally, it is expected that future empirical studies with this conceptual framework can enhance earnings quality for users of financial statements such as: investors, creditors, shareholders and other stakeholders in Indonesia and beyond.

Download Full-text

The Effect of Audit Committee Characteristics and Auditor Changes on Financial Restatement in Iran

Revista de Métodos Cuantitativos para la Economía y la Empresa ◽

10.46661/revmetodoscuanteconempresa.3816 ◽

2021 ◽

Vol 31 ◽

pp. 397-416

Author(s):

Mahdi Salehi ◽

Mahdi Mokhtarzadeh ◽

Mohammad Sadegh Adibian

Keyword(s):

Corporate Governance ◽

Financial Reporting ◽

Audit Committee ◽

Logistic Regression Model ◽

Stock Exchange ◽

Negative Association ◽

Financial Restatement ◽

Simultaneous Evaluation ◽

The Impact

The present study aims to realize and become more familiar with the impact and the functions of audit committee and its characteristics, including the expertise and independence of members, related experiences, and change of auditor on the quality of financial reporting in companies listed on the Tehran Stock Exchange (TSE). The required data are gathered from 105 listed companies on the TSE during 2012-2016 and logistic regression model is used for the hypothesis testing. The findings of the study indicate a positive and significant impact of audit committee characteristics, except audit independency which represents a negative association, and changes of auditor on financial restatement. The innovation of the present study relative to other conducted studies lies in the simultaneous evaluation of audit committee characteristics and change of auditor on the quality of financial reporting. Such results could be appropriate for Stocks and Securities practitioners to comply with the chart of the audit committee, to necessitate the use of corporate governance principles, and to voluntarily provide a corporate governance report.

Download Full-text

The Impact of Financial Distress, Corporate Governance, and Auditor Switching on Audit Delay

Summer - GATR Journal of Finance and Banking Review ◽

10.35609/jfbr.2021.6.2(4) ◽

2021 ◽

Vol 6 (2) ◽

pp. 108-117

Author(s):

Sylvi Angelia ◽

Rizal Mawardi

Keyword(s):

Corporate Governance ◽

Financial Services ◽

Financial Distress ◽

Audit Committee ◽

Stock Exchange ◽

Linear Regression Analysis ◽

Multiple Linear Regression Analysis ◽

Auditor Switching ◽

Analysis Technique ◽

The Impact

Objective – The purpose of this study is to examine the effect between financial distress, corporate governance, auditor switching and audit delay. This research sample using data on a manufacturing company on the Indonesia Stock Exchange. Methodology – The analysis technique used is multiple linear regression analysis technique. Findings– The research finding show that financial distress and the size of the audit committee have a significant effect on audit delay, while the concentration of ownership, managerial ownership, change of directors, and auditor switching has no significant effect on audit delay. Second finding explain that consideration for companies listed on the Indonesia Stock Exchange to pay attention to the timeliness of submitting financial reports and independent auditor reports so as not to get sanctions from the Financial Services Authority. Novelty – Our novelty research using the relationship of Financial Distress, Corporate Governance and Auditor Switching on new research model to Audit Delay. Type of Paper: Empirical JEL Classification: M41, M42 Keywords: Financial Distress, Corporate Governance, Auditor Switching, Audit Delay

Download Full-text

Impact of Corporate Governance on Financial Performance: Karachi Stock Exchange, Pakistan

Business and Economic Research ◽

10.5296/ber.v6i2.9772 ◽

2016 ◽

Vol 6 (2) ◽

pp. 401 ◽

Cited By ~ 1

Author(s):

Aon Waqas Awan ◽

Javed Ahmed Jamali

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Audit Committee ◽

Stock Exchange ◽

Profit Margin ◽

Audit Committees ◽

Board Size ◽

Good Decision ◽

Return On Equity ◽

The Impact

The aim of the research is to understand the impact of corporate governance on financial performance of listed companies on Karachi Stock Exchange Pakistan. Data was collected from forty two companies from different sectors like, insurance, banking, investment banking, and sugar industries. Study includes variables like profit margin & return on equity as a dependent (profitability) and board size, audit committee, annual general meetings & chief executive office (corporate governance). Using Pooled OLS, the result of the study proved those board size and audit committees have positive relationship with Profit margin and Return on Equity, if any independent variable changes it also stimulus the positively changing impact on Return on Equity (ROE) and Audit Committee (AC). This research offers imminent guidelines to the policy and decision makers in any type of firms to take good decision to set their firms hierarchy system.

Download Full-text

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

Corporate Ownership and Control ◽

10.22495/cocv13i3p12 ◽

2016 ◽

Vol 13 (3) ◽

pp. 131-147 ◽

Cited By ~ 1

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.

Download Full-text

Quality and quantity of FTSE-100 segmental information reporting

Accounting Research Journal ◽

10.1108/arj-05-2017-0093 ◽

2019 ◽

Vol 32 (3) ◽

pp. 326-343 ◽

Cited By ~ 1

Author(s):

Ghassan H. Mardini ◽

Sameh Ammar

Keyword(s):

Financial Reporting ◽

Boards Of Directors ◽

Stock Exchange ◽

Reporting Standard ◽

International Financial Reporting Standard ◽

Content Type ◽

Information Reporting ◽

Ifrs 8 ◽

The Uk ◽

The Impact

Purpose This study aims to explore the impact of international financial reporting standard no. 8 (IFRS 8) on segmental information reporting (SIR) after the post-implementation review (PIR) issued by international accounting standards board (IASB). This impact is examined in relation to quality and quantity as SIR dimensions represent, respectively, the level of reported items and segments. As a complement to this, the chief operating decision maker (CODM) identity is considered to understand the patterns of SIR dimensions. Design/methodology/approach The SIR of the UK financial times stock exchange 100 (FTSE-100) listed companies over the period 2013-2016 is the research’s scope. Several criteria were developed to ensure a representative research sample. A disclosure index approach was used facilitating the use of content analysis for data collection, which pertained to the dimensions of SIR published by the FTSE-100 following IFRS 8 PIR. Findings The IFRS 8 PIR has had several implications shaping the growing trend that is underpinned by the SIR dimensions published by FTSE-100 companies. First, the SIR quantity dimension positively corresponds over 2013-2016, but it still does not meet IASB’s demands. This, secondly, also applies to the quality dimension of SIR to uncover inconsistency with the existing knowledge being held regarding the introduction of IFRS 8. More specifically, the response of the FTSE-100 to mandatory and voluntary items seems to be in transition of substitution. Third, CODM’s identity was an insightful dimension in rationalising the understanding through the aforementioned dimensions. It is undertaken by boards of directors or executive committees and the case of the latter is associated with more disclose in relation to the CODM’s identity. Practical implications These findings reveal implications to: academics undertaking further research about IFRS 8 PIR to challenge or endorse this conclusion, using similar or alternative approaches; the stakeholders’ decision-making process; and policymakers to re-think the structure of mandatory and voluntary items. Originality/value This paper provides empirical evidence on the quality and quantity of SIR published by FTSE-100 companies following IFRS 8 PIR.

Download Full-text