scholarly journals Can the Audit Committee Provide Better Oversight of Listed Companies? – An Efficiency of Cash Holdings Perspective

2016 ◽  
Vol 8 (1) ◽  
pp. 100 ◽  
Author(s):  
Cheng-Li Huang ◽  
Wei-ju Chen ◽  
Kuo-Chen Lu
Keyword(s):  
Corporate Governance ◽  
Stock Market ◽  
Difference Method ◽  
Audit Committee ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Listed Companies ◽  
Over The Counter ◽  
Taiwan Stock Exchange ◽  
The Difference

<p>This study attempts to inspection the efficient of using cash holdings whether is improved after setting up audit committee sound corporate governance from the perspective of reducing agency costs. We use the difference in difference method to investigate the effect of oversight of audit committee from 2007 to 2010 the company with audit committee for sample. The empirical results show that the using efficiency of cash holdings isn’t promoted after setting up audit committee with all listed companies sample. We further divided the sample into the over-the-counter (OTC) market and the Taiwan Stock Exchange (TSE) market according to the stock market feather. The empirical indicated that the Taiwan Stock Exchange (TSE) market listed sample exhibited the effect of oversight of audit committee; however, the over-the-counter (OTC) market listed is not. It indicated that the different market structure did affect the effect of oversight of audit committee.</p>

Audit Committee Effectiveness Among Malaysian Listed Companies

2020 ◽  
Author(s):  
Shamsul Nahar Abdullah ◽  
Ku Nor Izah Ku Ismail
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Listed Companies ◽  
The Other ◽  
Interactive Effects ◽  
Committee Chairman ◽  
Kuala Lumpur ◽  
Political Costs ◽  
Leadership Structure

This study investigates further the previous paper by Shamsul Nahar and Al-Murisi (1997) by examining the interactive effects of the variables in that paper and introducing other variables associated with corporate governance and political costs. The present study postulated that percentage of external directors on audit committee interacted with the presence of an accountant on audit committee and with the number of years an audit committee in existence, respectively, to influence audit committee effectiveness. The study also posited that the interaction of the presence of an accountant on audit committee and the number of years an audit committee in existence positively and significantly influenced audit committee effectiveness. Addition. ally, the roles of leadership structure, audit committee chairman, and a firm's size on audit committee effectiveness were also investigated. Using a multiple regression from a sample consisting the Kuala Lumpur Stock Exchange listed companies, results showed that only a firm's size significantly influenced audit committee effectiveness in the predicted direction. Other variables, on the other hand, did not show any significant influence on audit committee effectiveness.  

scholarly journals Financial crisis and corporate governance: The role of internal audit in the Greek context

2019 ◽  
Vol 15 (2) ◽  
pp. 45-55
Author(s):  
Andreas Koutoupis ◽  
Michail Pazarskis ◽  
Grigorios Lazos ◽  
Ioannis Ploumpis
Keyword(s):  
Corporate Governance ◽  
Financial Crisis ◽  
Audit Committee ◽  
Stock Exchange ◽  
Internal Audit ◽  
Listed Companies ◽  
Athens Stock Exchange ◽  
Total Turnover ◽  
The Relationship

In this paper, our purpose is to examine the relationship between the role of Internal Audit (IA), Corporate Governance (CG) and the Audit Committee (AC) in the recent financial crisis in Greece and to investigate the contribution of IA to CG structures as well as its possible, the IA’s role during the financial crisis in Greece. Moreover, little research has been conducted based on the relationship between corporate governance and internal audit during the financial crisis in case of Greece. For this reason, we conducted a survey, using questionnaires, which were sent to the listed companies of the Athens Stock Market. Out of a total of 192 listed companies on the Athens Stock Exchange, the relevant questionnaires were sent to 100 companies. Those companies were selected firstly based on their total turnover and secondly due to the availability of information from company websites such as employees’ numbers and Internal Audit Department Structures. Our conclusion was that Internal Audit adds value to the organization and it can also help the senior management towards the accomplishment of the organizational goals.

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

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.

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

2020 ◽  
Vol 5 (4) ◽  
pp. 1-22
Author(s):  
Firas S. Q. Barakat ◽  
M. Victoria Lopez Perez ◽  
Lázaro Rodríguez Ariza ◽  
Orobah Ali Barghouthi ◽  
K. M. Anwarul Islam Islam
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Audit Committee ◽  
Stock Exchange ◽  
The Internet ◽  
Strong Positive Correlation ◽  
Reporting Standard ◽  
The Difference ◽  
International Investors ◽  
The Impact

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.

scholarly journals Does Corporate Governance Increase Related Party Transaction Disclosure In Indonesia?

2021 ◽  
Vol 4 (1) ◽  
pp. 1
Author(s):  
Amrie Firmansyah ◽  
Pria Aji Pamungkas ◽  
Fardan Ma’ruf Zainuddin
Keyword(s):  
Corporate Governance ◽  
Financial Services ◽  
Audit Committee ◽  
Stock Exchange ◽  
Secondary Data ◽  
Institutional Ownership ◽  
Total Sample ◽  
Listed Companies ◽  
Managerial Ownership ◽  
Related Party Transaction

The purpose of this study is to examine the effect of corporate governance (audit committee, institutional ownership, managerial ownership, and independent commissioners) on Related Party Transaction Disclosure. The data employed in this study is secondary data, financial statements from manufacturing sector companies listed on the Indonesia Stock Exchange from 2016 up to 2019. Based on the purposive sampling conducted, companies that meet the criteria in this study are 40 companies, so that the total sample is 160 observations. This study uses panel data regression analysis. This study finds that the independent commissioner has a positive effect on Related Party Transaction Disclosure. Meanwhile, the audit committee, managerial ownership, and institutional ownership do not affect Related Party Transaction Disclosure. This research indicates that the Indonesian Financial Services Authority (OJK) should supervise and tighten the rules for Indonesia listed companies, especially regarding the audit committee's or independent commissioner's requirements in listed companies.

scholarly journals Moderating Effects of Media Coverage and Corporate Governance on CSR-CFP Nexus-Evidence from Listed Companies on Taiwan Stock Exchange

2016 ◽  
Vol 8 (5) ◽  
pp. 190 ◽  
Author(s):  
Yuan Chang
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Media Coverage ◽  
Stock Exchange ◽  
Random Effect ◽  
Listed Companies ◽  
Regression Result ◽  
Taiwan Stock Exchange ◽  
Stage Estimation ◽  
The Relationship

Media coverage helps firm’s benevolent action under the sunlight (well-known by the public). Effective CEO incentive compensation and sound corporate governance align the interest of management with the firm by forming correct and efficient decision on positive-feedback social activities. This paper examines whether media coverage, compensation and corporate governance act as positive moderators for the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP), namely, CSR-CFP nexus. Based on data of TWSE-listed companies during 2005-2009, regression result generally shows that higher CEO compensation strengthen positive relationship between firm’s CSR engagement and financial performance. Weaker corporate governance deteriorates positive CSR-CFP relationship. Media coverage has little influence on the relationship between CSR and CFP. Robustness checks such as fixed/random effect estimation, two-stage estimation and propensity score matching to control for selection bias yield similar outcome.

scholarly journals The Impact of Corporate Governance on the Financial Distress: Evidence from Pakistani Listed Companies

2017 ◽  
Vol 5 (2) ◽  
pp. 49-53
Author(s):  
Ahmed Hassan Jamal ◽  
◽  
Syed Zulfiqar Ali Shah ◽  
Keyword(s):  
Corporate Governance ◽  
Financial Distress ◽  
Audit Committee ◽  
Positive Impact ◽  
Stock Exchange ◽  
Listed Companies ◽  
Board Composition ◽  
Explanatory Variables ◽  
Governance Practices ◽  
The Impact

This study intends to assess how corporate governance affects the financial distress in non-financial listed companies in Pakistan. Sample of 53 companies was obtained from non-financial institutes listed in Pakistani stock exchange. Regression analysis is used to estimate the impact of explanatory variables including size of board, composition of board, audit committee independence and duality of CEO on the financial distress. The findings show that size of board, composition of board and CEO duality has a positive impact on Z-score of Pakistani listed firms. This implies that better the corporate governance practices in companies, lower will be the financial distress and vice versa.

scholarly journals A Study of Association between Taiwan’s Corporate Governance Appraisal and Financial Performance: Evidence from Taiwan Listed Companies

2019 ◽  
Vol 12 (11) ◽  
pp. 66
Author(s):  
Li-Lun Liu ◽  
Yu-Ting Huang
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Financial Performance ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Listed Companies ◽  
Accounting Firms ◽  
Taiwan Stock Exchange ◽  
Big 4 ◽  
Corporate Governance Quality

To enable all listed companies to gradually upgrade and implement corporate governance, the appraisals are promoted to assist investors through the comparison of corporate governance appraisal (CGA) in Taiwan&rsquo;s market. Using a panel data is based on the companies listed on the Taiwan Stock Exchange during the period 2014-2016; this paper provides evidence that earnings management is affected negatively by corporate governance quality. This is expected to guide healthy competition between enterprises and strengthen corporate governance. Recent studies have pointed out that managers are more favorable to their actions due to weak corporate governance. While most studies explored the relationship between corporate governance and financial performance, few studies have included in corporate governance appraisal (CGA). This study examines how CGA in Taiwan listed companies will affect their earnings quality and this study uses earnings management (EM) as measure of financial performance. In addition, reference is made to the Big 4 accounting firms to explain the consequences of CGA and, specifically, its effect on the quality of financial statements. The empirical results show that CGA and earnings management have a significantly negative correlation. In addition, the CGA of companies audited by the Big 4 indicate that those with better earnings quality also conduct less earnings management.

scholarly journals AUDIT COMMITTEE PRACTICE IN THE POLISH LISTED STOCK COMPANIES. PRESENT SITUATION AND DEVELOPMENT PERSPECTIVES

2012 ◽  
Vol 10 (1) ◽  
pp. 50-65 ◽  
Author(s):  
Piotr Szczepankowski
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Listed Companies ◽  
Governance Mechanism ◽  
Corporate Managers ◽  
Warsaw Stock Exchange ◽  
Problematic Issue ◽  
Corporate Governance Mechanism ◽  
The Relationship

The audit committee is one of the parts of corporate governance mechanism, which is understood as the relationship between corporate managers, directors and the providers of equity, people and institutions who save and invest their capital to earn the return. This study presents survey research results of audit committee activity in Polish public stock companies quoted on the Warsaw Stock Exchange (WSE). The purpose of this paper is to present the audit committee practice in Poland after 2009. The paper shows that the audit committee practice is still the most problematic issue of transitional Polish corporate governance rules. The survey has shown that the corporate needs and its implementation, and communication with listed companies leave a lot of room for improvement. The paper is based on the documents prepared in 2010 by PricewaterhouseCoopers, the Polish Association of Listed Companies and the Polish Institute of Directors.

scholarly journals Audit Committee Compliance and Company Performance Nexus: Evidence from ASX Listed Companies

2017 ◽  
Vol 7 (2) ◽  
pp. 135 ◽  
Author(s):  
Ismail Gani ◽  
Albert Wijeweera ◽  
Ian Eddie
Keyword(s):  
Corporate Governance ◽  
Performance Indicators ◽  
Audit Committee ◽  
Stock Exchange ◽  
Listed Companies ◽  
Company Performance ◽  
Return On Assets ◽  
Return On Equity ◽  
Accounting Performance ◽  
Performance Variables

This study examines whether the compliance with the audit committee recommendations which the Australian Stock Exchange (ASX) Corporate Governance Council (2003, 2007, 2010, 2014) put forward as part of its corporate governance reforms has enhanced corporate performance of ASX listed companies. Using company performance variables for 97ASX listed companies in the materials sector, the study estimates six different company performance models under two major categories of accounting performance indicators and investor performance indicators. Result clearly suggest that among corporations that operated within the materials sector and ranked in the top 500 companies listed on the ASX, those that complied with ASX recommendation of audit committee requirements, have achieved a higher corporate performances as measured by return on assets (ROA) and return on equity (ROE) as opposed to those firms that did not comply with the recommendation.

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