Role of Auditor Specialization in Moderating Corporate Governance and Quality of Audit Reporting in Indonesian Manufacturing Companies

This study aims to examine the effect of tax avoidance, corporate social responsibility disclosures, and risk disclosures on investment efficiency. This study also examines the role of corporate governance in the association between tax avoidance, corporate social responsibility disclosures, risk disclosures, and investment efficiency. This study uses multiple linear regression with panel data. The sample uses 43 manufacturing companies listed on the Indonesian Securities Exchange from 2014 up to 2017 so that the total sample in this study amounted to 172 firm-years. The result suggests that tax avoidance is negatively associated with investment efficiency. However, corporate social responsibility disclosures and risk disclosures do not affect investment efficiency. Furthermore, another result suggests that corporate governance failed to moderate the effect of tax avoidance on investment efficiency. Besides, corporate governance can weaken the negative influence of corporate social responsibility disclosures on investment efficiency as well as corporate governance drives the negative effect of risk disclosures on investment efficiency.

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Corporate Governance Application, Audit Quality and Audit Report Lag: The Moderating Role of Law Compliance

International Journal of Financial Research ◽

10.5430/ijfr.v10n4p164 ◽

2019 ◽

Vol 10 (4) ◽

pp. 164

Author(s):

Yenny Dwi Handayani ◽

Ewing Yuvisa Ibrani

Keyword(s):

Corporate Governance ◽

Regression Analysis ◽

Audit Quality ◽

Manufacturing Companies ◽

Audit Report ◽

The Relationship ◽

Moderating Role

This study aims to examine the effect of corporate governance application and audit quality on audit report lag. Special attention is paid to investigate the moderating role of law compliance in the relationships. 180 manufacturing companies are observed during the three years of observation (2013-2015). Data are analyzed using moderated regression analysis (MRA). The results show that corporate governance application and audit quality have no effect on audit report lag. While law compliance moderates the relationship between corporate governance application and audit report lag.

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PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP EARNINGS MANAGEMENT

JURNAL INFORMASI, PERPAJAKAN, AKUNTANSI, DAN KEUANGAN PUBLIK ◽

10.25105/jipak.v8i1.4503 ◽

2019 ◽

Vol 8 (1) ◽

pp. 35

Author(s):

Hexana Lastanti

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Audit Committee ◽

Financial Statements ◽

Managerial Ownership ◽

Management Problem ◽

Good Corporate Governance ◽

The Difference

<p class="Style2">To be able to achieve good corporate governance, in addition to managerial ownership, institutional ownership and board of directors, the role of the audit committee also needed to further enhance the quality of information contained in the financial statements in accordance with his duties. Good corporate governance is one way to address the practice of earnings management. Study to examine the effect of the mechanisms of good corporate governance on earnings management that uses the data in the Indonesian capital market, still very little is done. Earnings management is a management action in the process of preparing financial statements to influence the level of profit that is displayed. The goal is to improve the welfare of certain parties, which can be identified as an advantage. Earnings management problem is the agency problem that is often triggered by a separation of the role or the difference between the interests of the owners (shareholders) with managing the company's management.</p>

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PERAN KEPEMILIKAN MANAJERIAL SEBAGAI MEKANISME PENINGKATAN KUALITAS LABA DAN NILAI PERUSAHAAN

Jurnal Akuntansi Auditing dan Keuangan BALANCE ◽

10.25170/balance.v15i2.80 ◽

2018 ◽

Vol 15 (2) ◽

pp. 144-161

Author(s):

Fenny Putrianti ◽

Sugi Suhartono

Keyword(s):

Firm Value ◽

Sampling Method ◽

Stock Exchange ◽

Negative Relationship ◽

Managerial Ownership ◽

Manufacturing Companies ◽

Purposive Sampling ◽

The Relationship

This research is aimed to determine the role of managerial ownership as a mechanism to improve the quality of earnings and value companies in manufacturing companies listed in the Indonesia Stock Exchange period 2014-2016. The sample in this study is a manufacturing company listed on the Indonesia Stock Exchange (BEI) in the period 2014-2016. The sample were selected by purposive sampling method, with the number of sample is 312 companies. The results showed that managerial ownership negatively affects firm value and managerial ownership does not affect the quality of profit but has a negative relationship. In addition, the results also show that the quality of earnings does not affect the value of the company but has a negative relationship. In addition, the quality of earnings does not affect the value of the company. Based on the analysis, the quality of earnings as intervening variable is not able to mediate the relationship between managerial ownership and firm value.

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Does Corporate Financial Architecture of Innovative Companies Differ? The Evidence From USA

Journal of Corporate Finance Research / Корпоративные Финансы | ISSN 2073-0438 ◽

10.17323/j.jcfr.2073-0438.12.4.2018.7-28 ◽

2018 ◽

Vol 12 (4) ◽

pp. 7-28 ◽

Cited By ~ 1

Author(s):

Irina Ivashkovskaya ◽

Sergei Evdokimov

Keyword(s):

Corporate Governance ◽

Risk Sharing ◽

Business Models ◽

Manufacturing Companies ◽

Publicly Traded ◽

Financial Architecture ◽

Innovative Firms ◽

Knowledge Intensive ◽

Distinct Features

Each company operates within the framework of interrelated structures: ownership, corporate governance and capital structure. The particular combination of these dimensions determines the corporate financial architecture of the company. Despite the growing body of literature on the challenges of the knowledge economy to the structural dimensions of companies, still little is known about the financial architecture of innovative firms. At the same time it is widely recognized that such companies substantially differ from traditional types of businesses in their business models and dynamics. Meanwhile, the financial architecture of a company generates the distribution of the incentives to enhance innovations affecting interests and risk-sharing among stakeholders. To address the lack of research into the interaction of corporate structures and their distinct features in innovative companies, this paper aims at identifying the robust financial architecture patterns of innovative companies. Using a sample of more than 1,300 publicly traded US-based manufacturing companies, we use an agglomerative hierarchical clustering method to identify relevant patterns and compare them to the firms which are not considered to be ‘knowledge intensive’. The empirical results allow the identification of seven robust financial architecture patterns within innovative companies. Our findings show that the first major difference between the financial architecture of innovative and non-innovative firms is in the higher role of activist institutional investors in the ownership. The second notable difference is related to CEO-duality, which plays a significant role in corporate governance only in innovative firms. Moreover, innovative companies are less leveraged than non-innovative firms. In addition, mature innovative companies demonstrate better financial performance.

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Exploring the Role of Quality of Work Life in Building Learning Organization: Applied Study on the Jordanian Pharmaceutical Manufacturing Companies

International Journal of Business and Management ◽

10.5539/ijbm.v13n9p24 ◽

2018 ◽

Vol 13 (9) ◽

pp. 24

Author(s):

Yazan Emnawer Al Haraisa

Keyword(s):

Learning Organization ◽

Work Conditions ◽

Work Life ◽

Pharmaceutical Manufacturing ◽

Quality Of Work Life ◽

Manufacturing Companies ◽

Quality Of Work ◽

Healthy Work

The pharmaceutical sector is one of the most important sectors at the level of countries because it has a big role in the development and sustain of other sectors. Therefore, the aim of this study examined the role of quality of work life in building learning organization in the (16) Jordanian Pharmaceutical manufacturing companies. For the sample unit and analysis involved the employees selected randomly from the different areas in the target companies. In addition to, the researcher designed a questionnaire containing of (31) items to get the data required from respondents in order to attain study objectives. Moreover, the current study sought to explore the role of quality of work life in building learning organization in the Jordanian Pharmaceutical Manufacturing companies. The result of the current study found that the quality of work life have a positive impact on building learning organization in Jordanian Pharmaceutical manufacturing companies and the highest impact for job satisfaction, then safety and healthy work conditions whereas the work environment is the lowest impact. Therefore, the current study recommends that the Jordanian Pharmaceutical manufacturing companies should focuses on quality of work life and their dimensions like job satisfaction, safety and healthy work conditions and work environment to build learning organization and achieve a benefits bundle or mutual interests to both employees and organizations. On the other hand, the current study applied on Jordanian Pharmaceutical Manufacturing companies’ .Therefore, there is a need to conduct more study in the future because the result of current studies limited and narrow. And also there is a need to take other dimensions of quality of work life like adequate and fair compensation and the social relevance of work life. And conduct further future studies on other sectors such as hotel, hospital and tourism. Moreover, conducting comparative studies with others sectors such as banks and clothes manufacturing companies.

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The Role of Corporate Governance and Environmental Committees on Greenhouse Gas Disclosure

Journal of Environmental Management and Tourism ◽

10.14505//jemt.v9.7(31).05 ◽

2019 ◽

Vol 9 (7) ◽

pp. 1403

Author(s):

Daniel T. H MANURUNG ◽

Andhika Ligar HARDIKA ◽

Dini W. HAPSARI ◽

Minda Maulina SEBAYANG

Keyword(s):

Corporate Governance ◽

Greenhouse Gases ◽

Greenhouse Gas ◽

Sampling Method ◽

Stock Exchange ◽

Gender Diversity ◽

Manufacturing Companies ◽

And Gender ◽

The Impact

The study aims to determine the impact of corporate governance (board of commissioners, directors and gender diversity) and environmental committees in greenhouse gas disclosure. The sampling method in this study using purposive sampling method with a total of 26 manufacturing companies listed in Indonesia Stock Exchange by using multiple regression analysis. The results show that the role of the board of commissioners has not been able to provide control over the reduction of greenhouse gases on the company, the board of directors has no effect on the disclosure of greenhouse gases refuse to make emission gas reduction due to litigation pressure and expenditure, gender diversity has not been able to control the role of women and men in decision-making and risk and environmental committees have been little able to contribute to the disclosure of greenhouse gases as it is expected that the establishment of an environmental committee on the company.

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The effects of ownership structure on likelihood of financial distress: an empirical evidence

Corporate Governance ◽

10.1108/cg-03-2016-0067 ◽

2017 ◽

Vol 17 (4) ◽

pp. 589-612 ◽

Cited By ~ 8

Author(s):

Shahab Udin ◽

Muhammad Arshad Khan ◽

Attiya Yasmin Javid

Keyword(s):

Corporate Governance ◽

Ownership Structure ◽

Financial Distress ◽

Generalized Method Of Moments ◽

The Body ◽

Content Type ◽

The Government ◽

The Impact

Purpose The purpose of this paper is to explore the role of corporate governance proxies by ownership structure on the likelihood of firms’ financial distress for a sample of 146 Pakistani public-limited companies listed at the Karachi Stock Exchange over the period of 2003-2012. Design/methodology/approach The dynamic generalized method of moments (GMM) estimator and panel logistic regression (PLR) are used to determine the impact of corporate governance on the financial distress. The ownership structure is used as a determinant of corporate governance, while the Altman Z-score is utilized as an indicator of financial distress, as it measures financial distress inversely. The smaller the values of the Z-score, the higher will be the risk of financial distress. Findings The authors find insignificant impact of ownership structure on firms’ likelihood of financial distress based on the dynamic GMM method. However, the PLR results indicate that foreign shareholdings have a significant negative association with firms’ likelihood of financial distress, in the case of Pakistan. An evidence of a negative and insignificant relationship between institutional ownership and financial distress was observed, which indicates the passive role of institutional investors in Pakistan. The results also reveal a positive and significant relationship between insider’s ownership and likelihood of financial distress. This finding is consistent with the entrenchment hypothesis which predicts that insiders are more aligned with their self-interest than outside shareholders’ interest when their shareholding increases in the business. Furthermore, the results also reveal insignificant association between government shareholdings and the probability of financial distress. The reason could be the social welfare objective of the government entities rather than profit maximization. Practical implications The findings of this study provide more insight to corporate managers and investors about the association between the quality of corporate governance and the degree of financial distress, with respect to Pakistani firms. Furthermore, this study contributes to the existing literature by adding new evidence from developing countries like Pakistan which are helpful for regulatory bodies and policymakers in the formulation of long-term corporate governance strategies to manage the financial distress. It is well established that strengthening the quality of corporate governance practices enhances the efficiency of capital markets and reduces the probability of financial distress. Originality/value The study extends the body of existing literature on corporate governance and the likelihood of financial distress with reference to Pakistan. The results suggest that policymakers may pay special attention to the quality of corporate governance, specifically ownership structure, while predicting corporate financial distress.

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The Relationship between Audit Committee Characteristics, Audit Firm Quality and Companies’ Profitability

Asian Journal of Finance & Accounting ◽

10.5296/ajfa.v7i2.8530 ◽

2015 ◽

Vol 7 (2) ◽

pp. 215

Author(s):

Laith A Aryan

Keyword(s):

Corporate Governance ◽

Audit Committee ◽

Audit Quality ◽

Financial Statements ◽

Industrial Sector ◽

Committee Meeting ◽

Audit Firm ◽

The Relationship

<p>Jordan displayed keen interest in corporate governance in terms of enhancing the quality of financial statements and to restore the investors’ confidence. This study aimed to highlight the role of audit committee and external audit in enhancing companies’ profitability. Since there are contradictions in previous studies results, there is a need to test these relationships in Jordanian context to provide empirical evidence on this issue,especially after the corporate governance application became mandatory since 2009. This study has used industrial sector, which include 91 companies, only 69 companies were included in this study, the other 22 companies were excluded either newly listed or delisted during the study period (2009-2014). Multiple regression were used to analyze the data, the result showed positive relationships between audit committee meeting, audit committee size and companies profitability, while no significant relationship between audit committee composition, audit committee members literacy, audit quality and companies profitability. Such results would be beneficial to companies’ corporate governance committees to play their supervisory role. </p>

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The Effect of Audit Tenure, Audit Rotation, Audit Fee, Accounting Firm Size, and Auditor Specialization to Audit Quality

Riset Akuntansi dan Keuangan Indonesia ◽

10.23917/reaksi.v4i3.9492 ◽

2019 ◽

Vol 4 (3) ◽

pp. 186-196 ◽

Cited By ~ 1

Author(s):

Shinta Permata Sari ◽

Ayu Aris Diyanti ◽

Rita Wijayanti

Keyword(s):

Firm Size ◽

Sampling Method ◽

Audit Quality ◽

Stock Exchange ◽

Financial Statements ◽

Manufacturing Companies ◽

Accounting Firm ◽

Audit Fee ◽

Auditor Specialization

The company management has a responsibility to run the company activities by reporting the resultsthrough financial statements. The role of an auditor is needed to mediate the management's interest and share holder’s concern.An auditor is an independent part of giving an opinion about the information contained in the financial statementsthroughits audit quality. Audit quality can be reduced if the auditor is not independent anymore. This study aims to analyze the effect of audit tenure, audit rotation,audit fee, accounting firm size, and auditor specialization to audit quality. The population of the study is manufacturing companies listed on the Indonesia Stock Exchange in2015-2017. The sample was taken by a purposive sampling method and obtained 50 companies as samples. Data were tested using logistic regression. The results of this study indicate that audit rotation,fee audit, and accounting firm size do not affect audit quality,meanwhile, the audit tenure and auditor specialization affect audit quality.

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