The controlling power of royal family members on the board of directors and audit committee effectiveness

This study aims to examine the effect of good corporate governance mechanism on the financial performance of banking companies listed on the Indonesian Stock Exchange 2012-2016 period. The corporate governance mechanism is proxied by the size of the board of directors, the size of the board of commissioners, audit committee size, the board of director's education, and the board of commissioner’s education. The company's financial performance is proxied by return on assets (ROA). Samples were taken by using purposive sampling. The total number of samples used in this study amounted to 180 research samples. This study was tested with SPSS 20 program. Data analysis technique used in this research is simple regression analysis. The results showed that the size of the board of directors, the size of the board of commissioners, and audit comitee size have a significant effect on return on assets. These three factors have a significant effect on return on assets, while the board of commissioners education and the board of director's education have no significant effect on return on assets.

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Effect of Corporate Governance Mechanism on Company Value with Company Performance as Intervening Variable

Archives of Business Research ◽

10.14738/abr.912.11368 ◽

2021 ◽

Vol 9 (12) ◽

pp. 115-131

Author(s):

NUR ADILA ◽

Zaenal Arifin

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Audit Committee ◽

Company Performance ◽

Governance Mechanism ◽

Company Value ◽

The Board Of Directors ◽

Long Time ◽

Corporate Governance Mechanism

Corporate Governance is a system that regulates and controls a company which expected to give and increase Company Value to investors. With the existence of Corporate Governance, it is expected that Company Performance will give a good influence on the company. One of the cases is after Indonesia went through a prolonged crisis since 1998, the repairing process in the companies took a long time and it is caused by the weakness of Corporate Governance application in the companies, which will affect the companies’ performance and decrease the companies’ values. The purpose of this research is to analyze the effects of the Corporate Governance mechanism on Company Value with Company Performance as an intervening variable. The case study used in this research is the companies included in IDX BUMN 20 Tahun 2020 list. The result of this study is that Independent Commissioner doesn’t affect values and Company Performance, the board of directors affects Company Value positively, the board of directors doesn’t affect Company Performance. The Audit Committee doesn’t affect the Company Value. The Audit Committee affects the Company Performance positively. The Company Performance is not capable to mediate the independent commissioner’s effect on Company Value. The Company Performance can mediate the effect of the Board of Directors on the Company Value, the Company Performance can’t mediate the effect of Audit Committee on the Company Value.

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Royal Family Members and Financial Reporting Timeliness: Evidence from UAE

UNIMAS Review of Accounting and Finance ◽

10.33736/uraf.2989.2021 ◽

2021 ◽

Vol 5 (1) ◽

pp. 8-27

Author(s):

Mohammed Ali Almuzaiqer

Keyword(s):

Board Of Directors ◽

United Arab Emirates ◽

Financial Reporting ◽

Audit Committee ◽

Family Members ◽

Reporting Quality ◽

Listed Companies ◽

Financial Reporting Quality ◽

Royal Family ◽

The Board Of Directors

This study aims to examine the association between Royal family members on the board of directors and financial reporting quality in the United Arab Emirates (UAE). UAE has two markets, namely Abu Dhabi Exchange Security (ADX) and Dubai Financial Market (DFM). The data of the current study were collected from these two markets listed companies for the periods of 2011 to 2018 which resulted in 437 observations. The results of this study showed that the existence of royal family members on the board of the UAE listed companies is significantly associated with financial reporting timeliness. This study provides evidence on the role played by the elite groups (Royal Family members) in UAE in enhancing the role of the board of directors. The findings also reported that board independence, audit committee size, audit committee expert, and firm profitability are significantly associated with financial reporting timeliness. The findings of this study contribute to the existing theory and empirical evidence of how the existence of Royal family members on the board of directors adds values to the company and improves its financial reporting quality.

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Directors' Monitoring Role, Ownership Concentration and Audit fees

Australasian Accounting Business and Finance Journal ◽

10.14453/aabfj.v14i5.2 ◽

2020 ◽

Vol 14 (5) ◽

pp. 3-25

Author(s):

Rabih Nehme ◽

Amir Michael ◽

Jim Haslam

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Audit Committee ◽

Audit Fees ◽

Governance Mechanism ◽

Corporate Executives ◽

Corporate Governance Mechanisms ◽

The Board Of Directors ◽

Corporate Governance Mechanism

The research objective is to analyse different factors potentially involved in influencing the size of audit fees. The association between the Board of Directors and the shareholders of listed companies should be effectively developed and there should be a higher spirit of compliance with the governance code. The empirical model is constructed to assess the theoretical and statistical relationship between audit fees and corporate governance characteristics over a period of four years (for FTSE 350 companies excluding financial institutions between 2012 and 2015). Different testing techniques are used for robustness reasons. We found that Board of Directors' characteristics are significant in relation to audit fees. Some of the Audit Committee characteristics are affected by the collegiality principle in relation to the Board of Directors' characteristics. The consultative role of audit committee directors is dominated by the role of the Board of Directors. Mandatory audit fees, and not total auditors' remuneration is included in this study. While other studies assess mainly one corporate governance mechanism in relation to audit fees, we include the corporate governance mechanisms that are directly related to auditors' scope. This paper can be used as a tool for audit practitioners and corporate executives to seek a better auditor-client relationship.

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PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP NILAI PERUSAHAAN

Jurnal Humaniora : Jurnal Ilmu Sosial, Ekonomi dan Hukum ◽

10.30601/humaniora.v1i1.37 ◽

2019 ◽

Vol 1 (1) ◽

pp. 7-20

Author(s):

Yushita Marini ◽

Nisha Marina

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Audit Committee ◽

Stock Exchange ◽

Financial Statements ◽

Audit Committees ◽

Independent Directors ◽

Governance Mechanism ◽

The Board Of Directors ◽

Corporate Governance Mechanism

This study aimed to get empirical evidence regarding the corporate governance mechanism proxied by the size of the board of commisioners, independent directors, the size of the board of directors and audit committees that affect the value of the company. This study using purposive sampling method for collecting samples of the companies listed in Indonesia Stock Exchange that publish the complete annual financial statements for 2010-2014, have the data necessary corporate governance in research, the company has never delisted and present its financial statements in Indonesian Rupiah , From the analysis of the study showed that the size of the board of commisioners, independent directors, and the size of the board of directors affect the value of the company, while the audit committee does not affect the value of the company.

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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.

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Corporate Governance in Islamic Banks

Corporate Governance and Its Implications on Accounting and Finance - Advances in Finance, Accounting, and Economics ◽

10.4018/978-1-7998-4852-3.ch015 ◽

2021 ◽

pp. 322-337

Author(s):

Sami Ben Mim ◽

Yosra Mbarki

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Supervisory Board ◽

Islamic Banks ◽

Governance Mechanism ◽

Governance Mechanisms ◽

Transmission Channels ◽

Corporate Governance Mechanisms ◽

The Board Of Directors ◽

Corporate Governance Mechanism

This study investigates the efficiency of the Shariah supervisory board as a corporate governance mechanism in Islamic banks. The authors mainly seek to examine the effect of the Shariah board's composition (size and academic background of its members) on the performance of Islamic banks. They also try to highlight the transmission channels explaining this effect, and compare the efficiency of the Shariah board with that of traditional corporate governance mechanisms, namely the board of directors. The empirical investigation is based on a sample of 72 Islamic banks from 19 countries. Estimation results suggest that the Shariah board positively affects the Islamic banks performance through the number of Islamic Shariah scholars. This effect is mainly due to the size and cost transmission channels. These results are robust to different performance measures. On the other hand, results show that the board of directors' size produces a positive effect on a bank's performance, offering evidence for complementarity between traditional and Islamic governance mechanisms.

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Earnings Quality, Family Influence and Corporate Governance: Empirical Evidence from Malaysia

10.26686/wgtn.17011394 ◽

2021 ◽

Author(s):

◽

Wan Adibah Binti Wan Ismail

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Audit Committee ◽

Family Firms ◽

Earnings Quality ◽

Governance Structure ◽

Family Influence ◽

Family Ownership ◽

The Board Of Directors ◽

And Control

This study investigates whether family ownership and control, and corporate governance are associated with earnings quality, and whether family influence in firms weakens the association between corporate governance and earnings quality. This study uses a panel sample of 527 publicly traded firms over the period 2003-2008 from the Malaysia Stock Exchange (Bursa Malaysia). Identifying family firms as firms in which family members hold a significant portion of shares and possess control over the board of directors, this study finds that family firms have significantly higher earnings quality. The results remain unchanged, even after using alternative measures of earnings quality and family influence. This study also finds that the earnings quality of firms in Malaysia is positively associated with the size and independence of the audit committee and negatively associated with the size of the board of directors. However, these relationships exist only for nonfamily firms. These results on the corporate governance variables suggest that the effectiveness of corporate governance could be mediated by family influence. Using multivariate regressions that include interaction variables for corporate governance and family firms, the study finds that the relationship between corporate governance and earnings quality is mediated by family ownership and control. The result is consistent with the argument that the monitoring role of corporate governance reduces when there is substantial control by family owners in a firm. Overall, this study concludes that family ownership and control drives higher quality earnings for firms regardless of their corporate governance structure.

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The effectiveness of the internal corporate governance mechanism and the ownership of the government and agencies

Accounting ◽

10.5267/j.ac.2021.5.005 ◽

2021 ◽

Vol 7 (7) ◽

pp. 1655-1660

Author(s):

Khaled Salmen Aljaaidi

Keyword(s):

Board Of Directors ◽

Negative Impact ◽

Governance Mechanism ◽

Board Size ◽

Internal Governance Mechanisms ◽

The Board Of Directors ◽

The Government ◽

Relationship Of ◽

The Impact ◽

The Relationship

This paper examines the impact of the government and its agencies’ ownership on the effectiveness of one the main internal governance mechanisms, namely; board of directors, for a sample of 140 energy and petrochemical Saudi listed firms over 2012-2019. The Saudi Arabia provides an interesting context due to the domination of government-linked corporations’ ownership. This setting arranges for the impact of such ownership on the board of directors’ monitoring and advisory roles. The board of directors’ effectiveness is measured as an interaction term of the board size and meetings of the board of directors. The study finds that government-linked energy and petrochemical corporations’ ownerships are inversely related to the board of directors’ effectiveness. This result is sensitive to the measurement of the board of directors’ effectiveness as each variable consisting of the board of directors’ effectiveness was examined individually. The study also finds that government-linked corporations’ ownership had a strong negative impact on the board size. In contrast, the proposed model does not provide any evidence supporting the relationship of the government-linked corporations’ ownerships with board meetings. Overall, the evidence supports the substitution hypothesis on the relationship of government-linked corporations and board of directors’ effectiveness.

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Earnings Quality, Family Influence and Corporate Governance: Empirical Evidence from Malaysia

10.26686/wgtn.17011394.v1 ◽

2021 ◽

Author(s):

◽

Wan Adibah Binti Wan Ismail

Keyword(s):

Corporate Governance ◽

Board Of Directors ◽

Audit Committee ◽

Family Firms ◽

Earnings Quality ◽

Governance Structure ◽

Family Influence ◽

Family Ownership ◽

The Board Of Directors ◽

And Control

This study investigates whether family ownership and control, and corporate governance are associated with earnings quality, and whether family influence in firms weakens the association between corporate governance and earnings quality. This study uses a panel sample of 527 publicly traded firms over the period 2003-2008 from the Malaysia Stock Exchange (Bursa Malaysia). Identifying family firms as firms in which family members hold a significant portion of shares and possess control over the board of directors, this study finds that family firms have significantly higher earnings quality. The results remain unchanged, even after using alternative measures of earnings quality and family influence. This study also finds that the earnings quality of firms in Malaysia is positively associated with the size and independence of the audit committee and negatively associated with the size of the board of directors. However, these relationships exist only for nonfamily firms. These results on the corporate governance variables suggest that the effectiveness of corporate governance could be mediated by family influence. Using multivariate regressions that include interaction variables for corporate governance and family firms, the study finds that the relationship between corporate governance and earnings quality is mediated by family ownership and control. The result is consistent with the argument that the monitoring role of corporate governance reduces when there is substantial control by family owners in a firm. Overall, this study concludes that family ownership and control drives higher quality earnings for firms regardless of their corporate governance structure.

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