Audit committee’s attributes, overlapping memberships on the audit committee and corporate risk disclosure: Evidence from Jordan

Accounting ◽  
2021 ◽  
pp. 423-440
Author(s):  
Malek Hamed Alshirah ◽  
Ahmad Farhan Alshira’h ◽  
Abdalwali Lutfi
Keyword(s):  
Audit Committee ◽  
Stock Exchange ◽  
Random Effect ◽  
Random Effect Model ◽  
Audit Committees ◽  
Annual Reports ◽  
Risk Disclosure ◽  
Committee Membership ◽  
Corporate Risk ◽  
Level Of Risk

This paper aims to contribute to the literature by examining whether audit committees' attributes affect risk disclosure practiced by Jordanian listed companies. Selecting a sample of 94 Jordanian companies listed on Amman Stock Exchange, the authors carried out a manual content analysis on annual reports to determine the level of risk disclosure. Random effect model was employed in the analysis. Empirical results show that the audit committee size had a positive effect on the level of risk disclosure. However, there was no evidence that the frequency of the audit committee meetings, expertise or overlapping of the audit committee membership were significantly related to the risk disclosure. The findings are important for standard setters to improve their comprehension about the influence of audit committee in disclosing risk information and reconsider the effective monitoring role played by audit committee.

scholarly journals The Role of Foreign Directors in Corporate Risk Disclosure: Empirical Evidence From Jordan

2019 ◽  
Vol 10 (4) ◽  
pp. 119
Author(s):  
Malek Hamed Alshirah ◽  
Azhar Abdul Rahman ◽  
Ifa Rizad Mustapa
Keyword(s):  
Resource Dependence ◽  
Random Effect ◽  
Random Effect Model ◽  
Resource Dependence Theory ◽  
Annual Reports ◽  
Risk Disclosure ◽  
Foreign Directors ◽  
Corporate Risk ◽  
Level Of Risk

The current study examined the role of foreign directors in enhancing the level of risk disclosure in the annual reports of Jordanian listed companies. The content analysis method was used to measure the level of risk disclosure by computing the number of risk-related sentences in annual reports. To achieve the study’s objective, random effect model have been applied on a sample of 376 firm-year observations of Jordanian non-financial companies for the period of 2014-2017. The findings are in line with the argument of agency theory and resource dependence theory, which posits that existence of foreign members on the board contributes in increasing the level of risk disclosure. The study aimed to fill the gap in the literature of risk disclosure regarding the relationship between foreign directors and risk disclosure. It is expected that the findings will be useful to researchers, authorities and investors alike in understanding the important role of foreign directors in improving practices of risk disclosure in Jordan.

scholarly journals Corporate risk disclosures: Influence of institutional shareholders and audit committee

2013 ◽  
Vol 10 (4) ◽  
pp. 341-354 ◽  
Author(s):  
Xuan Zhang ◽  
Dennis Taylor ◽  
Wen Qu ◽  
Judith Oliver
Keyword(s):  
Audit Committee ◽  
Audit Committees ◽  
Annual Reports ◽  
Risk Disclosure ◽  
Proprietary Information ◽  
High Resource ◽  
Institutional Shareholders ◽  
Risk Disclosures ◽  
Corporate Risk ◽  
Made In

This study investigates the association between corporate risk disclosures and institutional shareholders and audit committees. Using a sample of 66 Australian listed companies, risk disclosures made in 2009 annual reports are analysed. Findings reveal that there is no significant relationship between dedicated-type institutional block shareholders and risk disclosure, which it is argued is consistent with a proprietary information perspective. A positive relationship however is found between transient-type institutional block shareholders and risk disclosures. This result is consistent with a principal that wields limited monitoring resources while achieving high resource dependency over management. Significant positive relationships are found between audit committee independence and risk disclosures.

Analisis Pengaruh Kepemilikan Blockholder, Kepemilikan Manajerial, Kepemilikan Institusional, dan Komite Audit terhadap Nilai Perusahaan

2018 ◽  
Vol 2 (1) ◽  
pp. 96-121
Author(s):  
Iwan Wirawardhana ◽  
Meco Sitardja
Keyword(s):  
Firm Value ◽  
Audit Committee ◽  
Stock Exchange ◽  
Random Effect ◽  
Random Effect Model ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Estimation Model ◽  
Effect Model ◽  
Positive Effect

The aim of this study is to analyse the effect of Blockholder Ownership, Managerial Ownership,Institutional Ownership, and Audit Committee towards Firm Value. The background of this research isthe agency theory and ownership theory. The population in this study are 46 property companies listedon the Indonesia Stock Exchange (IDX) for the period 2012-2016. By using purposive samplingtechnique, 35 companies are qualified as data samples. This research uses the random effect model asthe estimation model and multiple regression as the method of analysis. The results of this study showsthat Institutional Ownership has a positive effect on Firm Value. Meanwhile, Blockholder Ownership,Managerial Ownership, and Audit Committee have no effect on Firm Value. Moreover, the F-testimplies that the variables, blockholder ownership, managerial ownership, institutional ownership, andaudit committee, simultaneously influence firm value.

scholarly journals The Effect of Corporate Governance on Tax Avoidance: Evidence from Indonesia

2020 ◽  
Vol 2 (4) ◽  
pp. 66-85
Author(s):  
Feren Frisca Tania ◽  
. Mukhlasin
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Audit Committee ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Secondary Data ◽  
Audit Committees ◽  
Annual Reports ◽  
Manufacturing Companies ◽  
Negative Effect

This study aims to analyze the effect of the effectiveness of internal control, independent commissioners, the expertise of the board of commissioners, the number of audit committees, and the expertise of the audit committee on tax avoidance in manufacturing companies listed in Indonesia Stock Exchange period 2016-2018. This research is expected to be a material consideration for companies in making decisions related to taxation. The deductive approach used in this study by developing hypotheses based on relevant theories and findings of previous studies. Agency theory is used to see the effect of corporate governance on tax avoidance. The data collection method uses secondary data from the company's financial statements and annual reports according to specific criteria. Data analysis was performed by descriptive statistics and multiple linear regression. The results of the regression analysis prove that effectiveness of internal control and number of audit committees had a positive effect which means higher effectiveness of internal control and number of audit committees cause more tax avoidance, conversely independent commissioners and expertise of the board of commissioners had a negative effect which shows greater independent commissioners and expertise of the board of commissioners cause less tax avoidance. Another result claim that the expertise of the audit committee did not affect on tax avoidance. In contrast to previous studies, this study is more varied by combining several independent variables. JEL Codes: G34, H26.

scholarly journals INTELLECTUAL CAPITAL DISCLOSURES AND AUDIT COMPONENTS IN NON-DISCRETIONARY INCOME

2019 ◽  
Vol 9 (1) ◽  
pp. 124
Author(s):  
Saarce Elsye Hatane ◽  
Dewi Rembulan ◽  
Josua Tarigan
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Audit Committee ◽  
Audit Quality ◽  
Random Effect ◽  
Random Effect Model ◽  
Audit Committees ◽  
Net Income ◽  
The Impact ◽  
The Relationship

This study aims to determine the relationship of Intellectual Capital Disclosures (ICD), audit committee characteristics (size, gender, education, expertise), and audit quality toward the performance of the company measured through Non-Discretionary Net Income (NDNI) and Cash Flow Operation (CFO). This study is conducted on service listed companies in the Indonesia Stock Exchange (Service Industry) from 2010 to 2016 by panel data regression method analyzed using random effect model. The results of this study indicate that components in ICD have no significant impact on firm performance. Some components in the audit committees are found to have significant positive relationship towards financial performance. The empirical results suggest that ICD serve as a tool in aiding firm performance. A corporation should practice ICD extensively to enjoy the impact on the firm performance and value. Most research studies the relationship between intellectual capital disclosures and board diversity toward firm performance individually. The interaction of intellectual capital disclosures and audit committee characteristics is analyzed and studied to see whether audit committee characteristics is a factor that can help and improve the effectiveness of firm performance. Audit quality is also being analyzed and being taken into consideration as a variable. This is the first study to find the relationship towards the firm performance using NDNI and CFO as the dependent variables

scholarly journals EFFECT OF R & D INVESTMENT ON PERFORMANCE OF BANKING SECTOR IN PAKISTAN

2018 ◽  
Vol 5 (1) ◽  
pp. 1-6
Author(s):  
Shaheen Fatima ◽  
Samreen Fatima ◽  
Nausheen Fatima
Keyword(s):  
Banking Sector ◽  
Stock Exchange ◽  
Random Effect ◽  
Random Effect Model ◽  
Fixed Effect ◽  
Least Square ◽  
Annual Reports ◽  
New Production ◽  
Effect Model ◽  
D Investment

Research and development activity initiates and promotes new production, increase knowledge level, and introduces new techniques of technology implementation and production. The current study presents and unveils the diversifying behavior of variables affecting the performance of banking sector and R&D investment association. cross sectional fixed effect model and random effect model utilizing ordinary least square methods were applied to secondary data collected from reliable sources of annual reports published by banks listed on Pakistan stock exchange and further such data was verified from state bank of Pakistan official sire .the data range from 2012-2017 and only 10 private banks were considered as sample size which were listed on Pakistan stock exchange. The intense literature guide that the performance of banks is affected by ROA, ROE, AND EPS. Furthermore Hausman test ass applied and it was concluded that when firm’s performance is dependent variable then fixed effect is better and thee is relationship between R&D investment and performance of banks.

scholarly journals Audit Committee Effectiveness and Audit Fee among Listed Deposit Money Banks in Nigeria

2020 ◽  
pp. 1-14
Author(s):  
Abdulrasaq Mustapha ◽  
Abdulrauf O. Isiaka ◽  
Kudirat A. Babatunde
Keyword(s):  
Audit Committee ◽  
Banking Sector ◽  
Audit Quality ◽  
Random Effect ◽  
Gender Diversity ◽  
Audit Committees ◽  
Annual Reports ◽  
P Value ◽  
Ex Post ◽  
Audit Fee

The persistent cases of corporate accounting scandals which have rocked the Nigerian banking sector in spite of auditor certification of financial statements as free from material error have raised concern not only on the effectiveness of audit committees but also on audit services despite the huge amount charged on their clients. Hence, this study examined the effect of audit committee effectiveness on audit fee of listed deposit money banks in Nigeria. Using an ex-post facto research design, the data sourced through the annual reports of twelve (12) banks for the period between 2012 and 2018 were analysed using random-effect regression analysis. The result of the study revealed that audit committee effectiveness proxy with audit committee audit committee expertise (t-value =3.22 & p-value = 0.000), audit committee diligence (t-value = 3.57, & p-value = 0.000) and audit committee gender diversity (t-value = 3.85 & p-value =0.000) has significant positive effect on audit fee of listed deposit money banks in Nigeria. This implies that an effective audit committee would demand for high audit quality service from the auditor, thereby increasing the audit efforts and time which subsequently result to higher audit fee. The study concluded that an effective audit committee would demand high audit service from the external auditor thereby ensuring that the financial statement published is relevant and of faithful representation.

Analisis Pengaruh Kepemilikan Blockholder, Kepemilikan Manajerial, Kepemilikan Institusional, dan Komite Audit terhadap Nilai Perusahaan

2019 ◽  
Vol 2 (1) ◽  
pp. 96-121
Author(s):  
Iwan Wirawardhana ◽  
Meco Sitardja
Keyword(s):  
Firm Value ◽  
Audit Committee ◽  
Stock Exchange ◽  
Random Effect ◽  
Random Effect Model ◽  
Sampling Technique ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Estimation Model ◽  
Effect Model

The aim of this study is to analyse the effect of Blockholder Ownership, Managerial Ownership, Institutional Ownership, and Audit Committee towards Firm Value. The background of this research is the agency theory and ownership theory. The population in this study are 46 property companies listed on the Indonesia Stock Exchange (IDX) for the period 2012-2016. By using purposive sampling technique, 35 companies are qualified as data samples. This research uses the random effect model as the estimation model and multiple regression as the method of analysis. The results of this study shows that Institutional Ownership has a positive effect on Firm Value. Meanwhile, Blockholder Ownership, Managerial Ownership, and Audit Committee have no effect on Firm Value. Moreover, the F-test implies that the variables, blockholder ownership, managerial ownership, institutional ownership, and audit committee, simultaneously influence firm value.

scholarly journals The Relationship Between Audit Committee Effectiveness and the Level of Corporate Risk Disclosure: The Relevance of Pre-and Post-Mccg 2012

2020 ◽  
Vol 19 (1) ◽  
Author(s):  
Sarliza Saari ◽  
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Inverse Relationship ◽  
Audit Committees ◽  
Unexpected Result ◽  
Risk Disclosure ◽  
Financial Report ◽  
Code Of Corporate Governance ◽  
Corporate Risk ◽  
The Relationship

This study examined the relationship between audit committee effectiveness and the level of corporate risk disclosure amongst Malaysian listed companies pre- and post-Malaysian Code of Corporate Governance 2012. Content analysis was employed. A total of 122 firm-year observations was examined in order to measure the extent of risk disclosure against audit committee effectiveness. The findings reveal only audit committee size and diligence are significant in explaining the variations in corporate risk disclosure for pre- and post-MCCG 2012. This indicates that audit committee size does matter in assisting the revelation of corporate risk disclosure. It also signifies that audit committees are responsible and discharge their duties accordingly with reference to the higher number of audit committee meetings. An unexpected result was also found in this study where an inverse relationship was detected between audit committee independence and corporate risk disclosure. The result is contrary to the requirement of MCCG 2012 that emphasizes the importance of an independent director under its Principle 3.5. Further, the result also shows that the audit committee effectiveness have increasing in the post-MCCG 2012 period compared to pre-MCCG 2012 in determining the extent of risk disclosure of the sampled firms. KEYWORDS: Corporate risk disclosure, audit committee characteristics, financial report, corporate governance

scholarly journals SOES CORPORATE PERFORMANCE ON IDX AND SOME INFLUENCED FACTORS

2021 ◽  
Vol 19 (4) ◽  
pp. 884-895
Author(s):  
Zainuddin Iba ◽  
◽  
Yudi Syahputra ◽  
Ghazali Syamni ◽  
Mahdawi Mahdawi ◽  
...  
Keyword(s):  
Stock Exchange ◽  
Random Effect ◽  
Random Effect Model ◽  
Institutional Ownership ◽  
Annual Reports ◽  
Political Connections ◽  
Factors Affecting ◽  
Common Effect ◽  
Effect Model ◽  
Random Effect Models

State-owned enterprises are government-owned businesses that have been privatized and can be close to politicians from political parties. They are also notorious for being poorly managed. The purpose of this research is to examine how political connections, institutional ownership, cash holdings, company size, and leverage affect the performance of state-owned enterprises on the Indonesia Stock Exchange. The data for this study comes from the annual reports of 20 state-owned enterprises (SOEs) listed on the IDX from 2014 to 2018. This research model is a panel regression model that tests the common effect, fixed-effect, and random effect models. Based on the Chow test and Hausman test, the best model in this study is the random effect model. The results found that political connections, institutional ownership, and cash holding are significant factors affecting the performance of state-owned companies. Another finding was that companies with stronger political connections affect the performance of state-owned companies. On the other hand, this study did not find companies having political connections affect the performance of state-owned companies. This finding is expected to provide benefits for investors to consider SOEs companies to invest.

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