IFRS Adoption and Audit Delay: The Role of Shareholders in the Audit Committee

2018 ◽  
Vol 8 (1) ◽  
pp. 325
Author(s):  
Ishaq Ahmed Mohammed ◽  
Ayoib Che-Ahmad ◽  
Mazrah Malek
Keyword(s):  
Audit Committee ◽  
Unobserved Heterogeneity ◽  
Value Relevance ◽  
Stock Exchange ◽  
Delay Model ◽  
Corporate Reporting ◽  
Ifrs Adoption ◽  
The Difference ◽  
The Relationship

This study examined the relationship between audit delay after IFRS adoption and the role of shareholders in the audit committee as well as testing the difference of pre-and post IFRS adoption periods. A sample of 101 firms with 505 firm-year observations over five year period for firms listed on the Nigeria Stock Exchange was employed for the study, utilizing data from the annual report and accounts of the sample firms. Generalized Methods of Moment (GMM) estimation was used to check the effects of unobserved heterogeneity in audit delay model, while the test of difference in R2 value for pre-and post-adoption periods was determined using Cramer’s Z-statistics. Findings indicate that audit report lag is faster with shareholders in the audit committee. The study proved that brand named auditors such as Big4 can significantly perform faster audit task than non-Big4 firms in IFRS regime. The importance of the study’s findings demonstrates statistical inference on value relevance increase based on the unique IFRS adoption in Nigeria. Thus, regulators should consider increasing the tenure of shareholders in the audit committee to enable them to become more familiar with the corporate reporting under IFRS regime.

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 The Role of Corporate Governance on the Relationship Between IFRS Adoption and Earnings Management: Evidence From Bangladesh

2020 ◽  
Vol 11 (4) ◽  
pp. 329
Author(s):  
Mohammad Tariq Hasan ◽  
Azhar Abdul Rahman
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Financial Reporting ◽  
Robust Regression ◽  
Stock Exchange ◽  
Random Effect ◽  
Negative Relationship ◽  
Ifrs Adoption ◽  
The Relationship

Purpose: This study investigates the relationship between IFRS adoption and earnings management (EM) i.e. discretionary accruals (DA) and real earnings management (REM) in developing economy like Bangladesh. Moreover, the study examine the relationship between corporate governance (CG) strength and EM as well as moderating role of CG strength on the relationship between IFRS adoption and EM.Design/methodology/approach: The study employs 94 firms listed in Dhaka Stock Exchange (DSE) for 6 years i.e. 564 firm years observation, over two time period as pre (2004-06) and post (2013/14-15/16) adoption of IFRS. Underpinning theory of the study is agency theory which explained the relationship among variables. Based on earlier literature a CG index is developed to measure the strength of CG. The study uses random effect GLS with robust regression in a balanced panel data.Findings: The results show that IFRS and CGI both have significant negative relationship with EM. Moreover, it is documented that the CG strength significantly moderates the relationship between IFRS and REM. It implies that the presence of good CG may help to attain the objectives of IFRS adoptionOriginality/value: To the best of the author’s knowledge, this is one of the first empirical attempts at providing evidence about the role of CG on the relationship between IFRS adoption and EM in Bangladesh. The findings of this study can be beneficial for the member of the regulatory bodies and researchers to formulate new policy and enhance corporate governance practices in Bangladeshi companies as well as develop a better framework for all stakeholders involved in financial reporting. Future studies may also investigate the interacting effect of corporate governance strength on other related variables which may influence the level of earnings management.

Intellectual capital disclosure and corporate market value: does board diversity matter?

2017 ◽  
Vol 7 (3) ◽  
pp. 369-398 ◽  
Author(s):  
Mutalib Anifowose ◽  
Hafiz Majdi Abdul Rashid ◽  
Hairul Azlan Annuar
Keyword(s):  
Value Relevance ◽  
Stock Exchange ◽  
Generalized Method Of Moments ◽  
Ethnic Composition ◽  
Board Diversity ◽  
Content Type ◽  
Listed Firms ◽  
The Relationship ◽  
Moderating Role

Purpose The purpose of this paper is to examine the relationship between IC disclosure and the corporate market value (CMV) of listed firms on the main board of Nigeria Stock Exchange and to test the moderating effect of religious and ethnic composition of board members on the relationship. Design/methodology/approach This study applies the signaling and upper echelons theories in formulating four hypotheses that guide the results analysis. By employing a two-step dynamic system generalized method of moments and controlling for the possible endogeneity effect on the parameters estimated for a sample of 91 listed firms on main board of Nigeria Stock Exchange, this study investigates the association of IC disclosure with CMV, namely, cost of capital and market capitalization, and the moderating role of religious and ethnic composition on such association using data over the 2010 to 2014 financial years. Findings The results show a significant positive relationship between overall IC disclosure and market capitalization and a negative impact on cost of capital, which are in line with the hypothesized propositions. The moderating effect of board diversity is also confirmed. This study contributes to recent evidence concerning the value relevance of IC information to investors and other interested stakeholders and the established moderating role of board diversity in IC disclosure-related studies. Practical implications The regulators may consider development of standards on board composition about religious and ethnic composition in order to curb the domination from same group in the board room. Those charged with governance should be concerned with the disclosure of IC information in the financial statements as it has value relevance to the investors, in line with signaling theory. Social implications The ethnic and religious composition of board members is a significant factor within the board room and needs to be given adequate consideration. Originality/value This study is the first to consider IC disclosure across whole sectors in the Nigerian economy and looks upon ethnicity and religious affiliation of boards as moderating variables. The study controls for heteroscedasticity and endogeneity issues by adopting two-step dynamic system generalized method of moments.

scholarly journals Audit committee structure and bank stability in Vietnam

2019 ◽  
Vol 8 (1) ◽  
pp. 240-255
Keyword(s):  
Audit Committee ◽  
Audit Quality ◽  
Bank Stability ◽  
External Audit ◽  
Quantile Regression Analysis ◽  
Banking Stability ◽  
The Difference ◽  
Accounting Expertise ◽  
The Relationship

The role of the audit committee in maintaining banking stability is becoming increasingly important. However, there are not many studies have examined the relationship between the audit committee structure and bank stability in developing countries. This paper examines the relation of the audit committee structure and the bank stability in the difference level of bank stability and the role of external audit quality in this relation by employing empirical techniques like 2SLS, S-GMM or quantile regression analysis with panel data, and using a sample of 37 commercial banks in Vietnam from 2002 to 2018. Our empirical results show that bank stability varies negatively with audit committee size, but this relationship is mitigated in banks that use good external audit services. Moreover, we also find that the relation of the audit committee structure and bank stability is heterogeneous, and that it is stronger in banks with higher stability levels. Based on these results, banks that have a large audit committee should consider a high quality external audit service and should increase the proportion of financial and accounting expertise in the audit committee in order to ensure bank stability.

scholarly journals THE ROLE OF FIRM CHARACTERISTICS AND AUDIT COMMITTEE SIZE IN TIMELINESS OF FINANCIAL REPORTIN

2020 ◽  
Vol 7 (1) ◽  
Author(s):  
Merryani Merryani ◽  
Juanda Astarani
Keyword(s):  
Financial Reporting ◽  
Firm Size ◽  
Audit Committee ◽  
Stock Exchange ◽  
Secondary Data ◽  
Annual Reports ◽  
Firm Characteristics ◽  
Relationship Of ◽  
The Relationship

This study examines the relationship of firm characteristics and audit committeesize with Timeliness of Financial Reporting (TIML) among retailer trade companies listed in Indonesian Stock Exchange. This study focuses on three variables of firm characteristics (i.e., firm size, profitability, and leverage) and one variable of corporate governance (i.e., audit committee size). A quantitative method of analysis, secondary data from annual reports for the period of 2012 to 2016, and purposive sampling, was adopted. The results revealed that both profitability and leverage are negatively associated with TIML, yet no significant association was found regarding the firm size and audit committee size with TIML. On the other hand, the results also revealed that firm size, profitability, leverage, and audit committee size could enhance TIML since those variables are found to be simultaneously associated with TIML.Keywords: Timeliness, Financial Reporting, Reporting Lag

scholarly journals Relationship Between Accounting Conservatism and Investment Efficiency with the Moderating Role of IFRS Adoption in Pakistan

2020 ◽  
Vol 6 (4) ◽  
pp. 1139-1150
Author(s):  
Khalid Latif ◽  
Ghulam Mujtaba Chaudhary ◽  
Aon Waqas
Keyword(s):  
Stock Exchange ◽  
Accounting Conservatism ◽  
Policy Implications ◽  
Investment Efficiency ◽  
Return On Assets ◽  
Ifrs Adoption ◽  
Mandatory Adoption ◽  
The Relationship ◽  
Moderating Role

ABSTRACT This study investigated the mandatory role of IFRS adoption in the association of accounting conservatism and investment efficiency in Pakistan. The study applied the model of Basu's (1997) to measure the conditional accounting conservatism for timely recognition of expected loss and gain. For empirical analysis, the study took a sample of 165 firms listed at Pakistan Stock Exchange and employed panel data methodology over the data of 2008-2017. Firms size, leverage, return on assets, and growth are taken as control variables to assess the relationship between accounting conservatism and investment efficiency. Findings of the study revealed that conditional accounting conservatism significantly affected the firms’ investment efficiency with the mandatory adoption of IFRS in Pakistan. IFRS adoption enhanced the firms’ investment efficiency and motivated to adopt the principle of accounting conservatism for recognizing the expected losses in timely manner in order to achieve investment efficiency. Timely recognition of expected losses played an important role in reducing agency problems and asymmetric information. In Pakistani setting, it is the pioneer study which highlighted the importance of accounting conservatism in protecting the surplus resources of investors and enhancing the overall investment efficiency under mandatory adoption of IFRS. These findings offer policy implications for focusing on the adaptation of IFRS in Pakistan.

scholarly journals Firm-Specific Attributes and the Value Relevance of Accounting Information in Nigeria

2019 ◽  
Vol 14 (10) ◽  
pp. 12
Author(s):  
Gospel J. Chukwu ◽  
Isoboye J. Damieibi ◽  
Emma I. Okoye
Keyword(s):  
Financial Reporting ◽  
Firm Value ◽  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Information ◽  
Market Values ◽  
Ifrs Adoption ◽  
Accounting Numbers ◽  
Before And After ◽  
The Relationship

This paper examines how firm-specific attributes affect the value relevance of summary accounting numbers in Nigeria. The paper also investigates whether the adoption of International Financial Reporting Standards (IFRS) affects the relationship between the summary accounting numbers (book value of equity and earnings) and firm-specific characteristics (firm size, liquidity and leverage). Data from 54 firms in 10 sectors of the Nigerian Stock Exchange (covering a period of 6 years, 2009 to 2014, divided into 3 years pre-IFRS period and 3 years IFRS period) were analyzed based on the Ohlson (1995) model. Results from the analyses indicate that firm-specific characteristics affect the relationship between summary accounting numbers and market value, and this effect increased in the period after IFRS adoption. The implication of these findings is that firms seeking to improve their market values must work towards the firm-specific attributes that enhance firm value. By examining the effect of firm-specific attributes on the value relevance of accounting information using data from the Nigerian Stock Exchange, before and after IFRS adoption, this study fills a research gap.

scholarly journals Audit Committee Accounting Expert and Earnings Management with “Status” Audit Committee as Moderating Variable

2017 ◽  
Vol 1 (2) ◽  
pp. 49 ◽  
Author(s):  
Edy Suprianto ◽  
Suwarno Suwarno ◽  
Henny Murtini ◽  
Rahmawati Rahmawati ◽  
Dyah Sawitri
Keyword(s):  
Regression Analysis ◽  
Earnings Management ◽  
Audit Committee ◽  
Annual Report ◽  
Stock Exchange ◽  
Financial Statements ◽  
Purposive Sampling ◽  
Negative Effect ◽  
The Relationship

This research aims to analyze the effect of accounting expert of audit committee on earnings management. This research also assesses the role of audit committee on earnings management with audit committee status as moderating variable. The population is all of firm’s which listed in Indonesia Stock Exchange. Purposive sampling is used to collect data. Data used financial statements and annual report companies from Indonesia Stock Exchange website. Moderated regression analysis (MRA) is used to analyze the hypothesis. The result shows that accounting expert of audit committee has negative effect on earnings management. Yet, variable of audit committee status cannot moderate the relationship between accounting expert of audit committee and earnings management in Indonesia.

scholarly journals Role of Accounting Information in Assessing Stock Prices in Bangladesh

2017 ◽  
Vol 7 (10) ◽  
pp. 18
Author(s):  
Nazmul Hassan ◽  
Hasan Md. Mahmood Ul Haque
Keyword(s):  
Stock Prices ◽  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Information ◽  
Share Price ◽  
Share Prices ◽  
Valuation Model ◽  
The Individual ◽  
The Relationship

<p>This paper seeks to explore the relationship between share prices and the value-relevance of accounting information. The basic <a href="file:///D:/IJBSR/October%2017/Published/1089-3299-2-SM.docx#Ohlson">Ohlson (1995)</a> valuation model has been used to conduct the research using a sample of 93 companies from six broad industries listed on the Dhaka Stock Exchange (DSE), Bangladesh. The adjusted (R²) and estimated regression coefficients of accounting variables are tested in this model. Results report that both Earnings per Share (EPS) and Book Value (BV) have influential power in determining share prices. But, results of the individual effect of EPS and BV to determining share price indicate that the EPS played an increasingly considerable role in projecting share prices than that of BV. Thus, EPS has become more informative to equity investors in predicting the share prices.</p>

scholarly journals The relationship between corporate governance, internal audit and audit committee: Empirical evidence from Greece

2016 ◽  
Vol 14 (1) ◽  
pp. 569-577 ◽  
Author(s):  
George Drogalas ◽  
Konstantinos Arampatzis ◽  
Evgenia Anagnostopoulou
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Internal Audit ◽  
Audit Process ◽  
Athens Stock Exchange ◽  
The Relationship

Internal audit has been acknowledged as the main driver of corporate disclosure which aims to increase the quality of financial information, to ensure the transparency in financial reporting and to increase the confidence between managers and shareholders. The need for developing strong governance structures has led many researchers to examine the new framework of corporate governance and to explore its relationship to the internal audit process. Regarding Greece, there is a lack of research evaluating the relationship between corporate governance and internal audit. This study examines the above relationship in companies listed in the Athens Stock Exchange. In the present research, internal audit is examined in terms of audit quality and the consulting role of internal audit, in order to highlight the new management-oriented and value adding scope of internal audit. Data was collected via a survey questionnaire methodology and was analyzed using regression analysis. The results show that corporate governance is positively associated to the consulting role of internal audit, to internal audit quality and to the audit committee.

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