scholarly journals The Effects of Board Compositions and Audit Committee Characteristics on Information Disclosure Practices: A Case of Singapore

2018 ◽  
Vol 10 (1) ◽  
pp. 407
Author(s):  
Nunthapin Chantachaimongkol ◽  
Shuwen Chen
Keyword(s):  
Southeast Asia ◽  
Information Disclosure ◽  
Audit Committee ◽  
Gender Diversity ◽  
Ordinary Least Squares ◽  
Financial Information ◽  
Corporate Disclosure ◽  
Participation Rates ◽  
Developed Country ◽  
New Instrument

This paper aims to investigate the effects of board compositions and audit committee characteristics on disclosure practices in Singapore. The ASEAN Disclosure Index, covering 212 items in 3 domains: Financial Information, Non-Financial Information, and Strategic Management Information, was constructed to capture disclosed information of 22 listed companies from 2011-2015, made out of 110 observations. In the analytical procedure, multiple regression models were tested through EVIEWS 10 with an ordinary least squares (OLS) method to estimate the connection between the predictors and the dependent variable. An empirical result reports that board size, audit committee independence, a number of audit committee meetings and a number of audit committee participation rates have a positive relationship with the level of corporate disclosure while CEO duality has a negative association with information disclosure practices. For other variables covering board independence, a number of board meetings, a number of director participation rates and gender diversity, no significant relationship was found. The findings might help regulators in enhancing the level of corporate disclosure in Singapore as well as neighboring countries in Southeast Asia region. Furthermore, this study also contributes to the literature by offering a new instrument for assessing the extent of corporate disclosure in Southeast Asia region and also providing some insight into the relationship between corporate governance mechanisms on information disclosure practices based on the Asia’s developed country perspective.

scholarly journals The relationship between corporate governance and information disclosures: Evidence from the Philippines

2018 ◽  
Vol 15 (4-1) ◽  
pp. 191-200
Author(s):  
Nunthapin Chantachaimongkol ◽  
Shuwen Chen
Keyword(s):  
Corporate Governance ◽  
Southeast Asia ◽  
Audit Committee ◽  
Listed Companies ◽  
The Philippines ◽  
Financial Information ◽  
Corporate Disclosure ◽  
Participation Rates ◽  
New Instrument ◽  
The Impact

This paper aims to investigate the impact of board characteristics and auditors on the disclosure practices of listed companies in the Philippines. This study used a self-constructed research instrument, namely the ASEAN Disclosure Index, to assess the extent of corporate disclosure of 21 the Philippines’ listed companies from 2011-2015, made out of 105 observations. The index covers 212 information items, with three attributes: financial information (76 items), non-financial information (68 items) and strategic information (68 items). An empirical result reports that the result reveals that an audit committee independence is positively significant at 95% level while board size and a number of board meetings held in the year are negatively significant at 95% level. For other variables covering board independence, a number director participation rates, gender diversity, CEO duality, a number of audit committee meetings, a number of audit committee participation rates and quality of external auditors, no significant relationship was found. This study contributes to the literature by offering a new instrument for assessing the extent of corporate disclosure in Southeast Asia region and also providing a novel viewpoint into the relationships between corporate governance mechanisms on information disclosure practices in a context of developing countries like the Philippines. Definitely, the contributed empirical evidence of this study might also help regulators for enhancing the level of corporate disclosure in the Philippines as well as neighboring countries in Southeast Asia region.

Gender diversity on audit committees and its impact on audit fees: evidence from India

2019 ◽  
Vol 32 (4) ◽  
pp. 568-586 ◽  
Author(s):  
Seema Miglani ◽  
Kamran Ahmed
Keyword(s):  
Audit Committee ◽  
Audit Quality ◽  
Gender Diversity ◽  
Audit Fees ◽  
Ordinary Least Squares ◽  
Audit Committees ◽  
Women Directors ◽  
Least Squares Regression ◽  
Content Type ◽  
Financial Expert

Purpose The purpose of this study is to examine the relationship existing between gender diverse (women directors) audit committees and audit fees. Design/methodology/approach The authors use a sample of 200 listed Indian firms over a four-year period (2011-2014). Ordinary least squares regression is used to assess whether and how the presence of women directors on audit committees affects the fee paid to the external auditor in India. To deal with the self-selection bias, the authors use a two-stage model developed using Heckman’s (1976) method. Findings The results show a significant positive relationship between the presence of a woman financial expert on the audit committee and audit fees after controlling for a number of firm-specific and governance characteristics and potential endogeneity with the propensity-matching score analysis. From the demand-side perspective of audit pricing, the results indicate that women financial experts on audit committees increase the need for assurance provided by external auditors. Using interaction terms, the authors find that women with financial expertise on an audit committee have a stronger association with audit fees as entity becomes more complex. Research limitations/implications The findings suggest that audit committees with women financial experts are likely to demand higher audit quality, ceteris paribus. Practical implications Gender of the financial expert is critical to the audit committee’s effectiveness. The findings of this study have implications for the composition of an audit committee in a firm. Originality/value This study contributes to the extant literature by examining the less-researched topic of the association between the women representation on audit committees and audit fees. It also offers further empirical evidence that will influence the debate on the importance of gender diversity in corporations.

scholarly journals Gender diversity on boards and forward-looking information disclosure: evidence from Jordan

2018 ◽  
Vol 8 (2) ◽  
pp. 205-222 ◽  
Author(s):  
Zakaria Ali Aribi ◽  
Rateb Mohammad Alqatamin ◽  
Thankom Arun
Keyword(s):  
Information Disclosure ◽  
Family Firms ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Financial Information ◽  
Female Representation ◽  
Financial Reports ◽  
Content Type ◽  
Final Sample ◽  
Forward Looking

Purpose The purpose of this paper is to provide empirical evidence of the relationship between female representation on the board and forward-looking information disclosures (FLIDs). Design/methodology/approach The study uses the content analysis to analyze the narrative evidence from the annual financial reports of non-financial Jordanian companies listed on the Amman Stock Exchange. The final sample consists of 1,206 firm-year observations during the period 2008-2013. Findings The study provides evidence that gender diversity on boards positively affects the level of FLIDs. Further to this, the study reveals that family firms disclose more information than non-family firms. Practical implications Results of this study could be beneficial for a number of users of financial information such as, regulators, investors, auditors and lenders. The users might consider the findings of this study when they are using the company’s financial information. Consequently, users of this information could be better assisted to make right decisions. Originality/value This study contributes to the literature by identifying the role of gender on the level of FLID, particularly on family and non-family, a relatively little researched area.

scholarly journals Comprehensive research on corporate disclosure theory

Impact ◽  
2021 ◽  
Vol 2021 (2) ◽  
pp. 65-67
Author(s):  
Nobuhito Ochi
Keyword(s):  
Information Disclosure ◽  
Natural Capital ◽  
Modern Society ◽  
Financial Information ◽  
Social Value ◽  
Corporate Disclosure ◽  
Asymmetry Of Information ◽  
Methodological Foundation ◽  
Information Measures ◽  
Institutional Capital

Incorporating the dynamics of capital markets into the driving force, starting from comparable ESG (environmental, social and governance) information, will contribute to the circulation of the ecosystem that connects business and a sustainable society. Professor Nobuhito Ochi, Department of Policy Studies, Shobi University, Japan, is deepening research toward the realization of an ESG ecosystem, with a basic perspective of improving market discipline for corporate activities related to ESG and leveraging the improvement of comparability of non-financial information. Ochi's work comprehensively examines the externalities of social common capital held by modern society, and uses the thinking framework of incentive analysis as a methodological foundation, and aims to develop interdisciplinary disclosure theory to improve inefficiency caused by asymmetry of information. Measures that would contribute to the realization of social value under a framework that utilizes disclosure discipline, in order to draw out incentives for coping with the cause for externality control related to natural capital, social capital (culture and community) and institutional capital (finance and audit).<br/> Ochi is conducting research that involves looking at a broad range of corporate activities surrounding disclosure theory, ESG and AI, including lead companies to an ideal ESG information disclosure process through the utilization of AI. This work includes looking at how companies can buffer communities from the negative aspects of a corporation's activities and exploring the disclosure of information including social, natural and institutional capital. Ochi has presented a theory of corporate disclosure and a theory of assurance of non-financial information that allows for better control of costs and benefits that are social common capital rather than financial capital. The theory operates under a framework that uses the discipline of disclosure and contributes to the realization of social value and, ultimately, Ochi is seeking to help build a financial and economical society that contributes to societal wellbeing.

scholarly journals The Effect of Internal Control Disclosure on Financial Information Quality and Market Performance distinguished by the Corporate Governance Index

2018 ◽  
Vol 8 (1) ◽  
pp. 241
Author(s):  
Weli ◽  
Julianti Sjarief
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Information Disclosure ◽  
Information Quality ◽  
Market Performance ◽  
Financial Information ◽  
Annual Reports ◽  
Corporate Disclosure ◽  
Public Corporations ◽  
Governance Index

Corporate disclosure practice of internal control in Indonesia remains non-mandatory and limited in nature. This study was conducted to analyze the level of internal control disclosure in the annual reports of Indonesian public corporations and identify its consequences on the firm’s market performance and financial information quality, which was differentiated by corporate governance index. This index refers to the Corporate Governance Perception Index released by the Indonesian Institute for Corporate Governance in 2014 and 2015. Based on the conducted content analysis, it can be concluded that the disclosure of internal control by public corporations in Indonesia is still at an intermediate level. The influence of extensive internal control information disclosure on market performance is strengthened by the accounting information quality. And the influence of the relationship between extensive disclosure and firm performance is different between CGPI-indexed companies and those which are unindexed by CGPI. The findings of this research contribute to future researches related to internal control disclosure. Limitations and suggestions can be found at the end of this study.

scholarly journals Analysis of Variables that Affect Tax Avoidance in Banking Sector Companies in Southeast Asia

2018 ◽  
Vol 8 (1) ◽  
pp. 109
Author(s):  
Iqbal Bagus Prakosa ◽  
Gunasti Hudiwinarsih
Keyword(s):  
Southeast Asia ◽  
Board Of Directors ◽  
Audit Committee ◽  
Banking Sector ◽  
Gender Diversity ◽  
Tax Avoidance ◽  
Institutional Ownership ◽  
The State ◽  
Effective Tax Rate ◽  
Tax Rate

Tax is one of the largest revenues the state has and it is compulsory for both citizens and companies to pay to the state. The collected funds are used by the state to build state infrastructure and others. However, not all individuals or companies are willing to pay tax voluntarily. Some taxpayers even carry out tax avoidance. There are many factors that may affect tax avoidance practices, such as institutional ownership, gender diversity on board of directors, audit committee, and fi rm size. This study aims to determine the effect of institutional ownership, gender diversity on board of directors, audit committee and fi rm size on tax avoidance by using current effective tax rate approach and SPSS test tool version 22. The sample consists of 568 banking sector companies in Southeast Asia and they are listed on Orbis that publish fi nancial statements in English, gain profi t, and pay taxes in the research period. Based on the research results, it is found that institutional ownership has a signifi cant effect on tax avoidance. Likewise, audit committee and fi rm size also have a signifi cant effect on tax avoidance. However, gender diversity on board of directors has no signifi cant effect on tax avoidance.

Diversity and the Performance of Selected Financial Institutions of Asia

2018 ◽  
Vol 2 (1) ◽  
pp. 1
Author(s):  
Shafaque Fatima ◽  
Saqib Sharif
Keyword(s):  
Financial Institutions ◽  
Positive Impact ◽  
Financial Institution ◽  
Gender Diversity ◽  
Business Case ◽  
Ordinary Least Squares ◽  
Cross Sectional ◽  
Age Diversity ◽  
The Impact ◽  
Nationality Diversity

Linking with the business case for diversity, this study examines whether the top management team (TMT) and the board of directors (BODs) diversity has a positive impact on financial institution (FI) performance in select countries of Asia least researched domain. We use data from 119 financial institutions across Asia for the year 2015, initially 1,447 institutions; however, incomplete data was excluded from final analysis. We use three proxies for diversity, that is, nationality diversity, gender diversity, and age diversity of TMT and BODs. To investigate the impact of TMT and BODs diversity, cross-sectional ordinary least-squares estimation is applied, using Return on Average Assets (ROAA%) as a measure of performance.  We find that nationality diversity and age diversity is positively and significantly related to FIs performance. Our evidence indicates that executives and board members with diverse exposure and younger age improve FIs profitability. However, there is no significant relationship between gender and FIs performance.

Audit committee characteristics and the moderating effect of Malaysian code of corporate governance on IPO liquidity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amal Mohammed Al-Masawa ◽  
Rasidah Mohd-Rashid ◽  
Hamdan Amer Al-Jaifi ◽  
Shaker Dahan Al-Duais
Keyword(s):  
Corporate Governance ◽  
Initial Public Offerings ◽  
Audit Committee ◽  
Ordinary Least Squares ◽  
Moderating Effect ◽  
Least Squares Regression ◽  
Content Type ◽  
Code Of Corporate Governance ◽  
The Impact ◽  
The Relationship

Purpose This study aims to investigate the link between audit committee characteristics and the liquidity of initial public offerings (IPOs) in Malaysia, which is an emerging economy in Southeast Asia. Another purpose of this study is to examine the moderating effect of the revised Malaysian code of corporate governance (MCCG) on the link between audit committee characteristics and IPO liquidity. Design/methodology/approach The final sample consists of 304 Malaysian IPOs listed in 2002–2017. This study uses ordinary least squares regression method to analyse the data. To confirm this study’s findings, a hierarchical or four-stage regression analysis is used to compare the t-values of the main and moderate regression models. Findings The findings show that audit committee characteristics (size and director independence) have a positive and significant relationship with IPO liquidity. Also, the revised MCCG positively moderates the relationship between audit committee characteristics and IPO liquidity. Research limitations/implications This study’s findings indicate that companies with higher audit committee independence have a more effective monitoring mechanism that mitigates information asymmetry, thus reducing adverse selection issues during share trading. Practical implications Policymakers could use the results of this study in developing policies for IPO liquidity improvements. Additionally, the findings are useful for traders and investors in their investment decision-making. For companies, the findings highlight the crucial role of the audit committee as part of the control system that monitors corporate governance. Originality/value To the authors’ knowledge, this work is a pioneering study in the context of a developing country, specifically Malaysia that investigates the impact of audit committee characteristics on IPO liquidity. Previously, the link between corporate governance and IPO liquidity had not been investigated in Malaysia. This study also contributes to the IPO literature by providing empirical evidence regarding the moderating effect of the revised MCCG on the relationship between audit committee characteristics and IPO liquidity.

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