Impact of the External Audit Quality and Corporate Governance on the Tunisian Company’ Financial Performance of Before and After the 2011 Revolution

2019 ◽  
Vol 9 (3) ◽  
pp. 34
Author(s):  
Nafti Olfa
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Audit Committee ◽  
Audit Quality ◽  
Good Governance ◽  
Stock Exchange ◽  
External Audit ◽  
Before And After ◽  
The Impact ◽  
The Revolution

The latest financial scandals have challenged the accounting systems adopted and the quality of external audit and corporate governance.The purpose of the study is to analyze the impact of the determinants of the external audit quality and corporate governance on the Tunisian company’s financial performance before and after the 2011 revolution.Using a sample of 31 companies listed on the Tunis Stock Exchange this impact is tested for a period of eight years, divided into two periods. The first period spans from 2007 to 2010, before the revolution, and the second period spans from 2013 to 2016, after the revolution.The results show that after the revolution, a significant relationship exists between the financial performance of the companies and their size and indebtedness, whereas before the revolution, the relationship was significant between financial performance of the companies and the existence of an audit committee and managerial property. The behavior of Tunisian companies changed after the revolution and the 2011 revolution allowed the various parties who were against good governance to negatively affect investor confidence in auditors and the performance of the company. It's a crisis of the crisis.

scholarly journals Impact of Corporate Governance on Financial Performance: Karachi Stock Exchange, Pakistan

2016 ◽  
Vol 6 (2) ◽  
pp. 401 ◽  
Author(s):  
Aon Waqas Awan ◽  
Javed Ahmed Jamali
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Profit Margin ◽  
Audit Committees ◽  
Board Size ◽  
Good Decision ◽  
Return On Equity ◽  
The Impact

The aim of the research is to understand the impact of corporate governance on financial performance of listed companies on Karachi Stock Exchange Pakistan. Data was collected from forty two companies from different sectors like, insurance, banking, investment banking, and sugar industries. Study includes variables like profit margin & return on equity as a dependent (profitability) and board size, audit committee, annual general meetings & chief executive office (corporate governance). Using Pooled OLS, the result of the study proved those board size and audit committees have positive relationship with Profit margin and Return on Equity, if any independent variable changes it also stimulus the positively changing impact on Return on Equity (ROE) and Audit Committee (AC). This research offers imminent guidelines to the policy and decision makers in any type of firms to take good decision to set their firms hierarchy system.

scholarly journals PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP KINERJA KEUANGAN PERUSAHAAN PERBANKAN YANG TERDAFTAR DI BEI TAHUN 2014-2018

2021 ◽  
Vol 10 (3) ◽  
pp. 290
Author(s):  
Della Ayu Rizki ◽  
Eni Wuryani
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Of Directors ◽  
Audit Committee ◽  
Banking Sector ◽  
Audit Quality ◽  
Institutional Ownership ◽  
External Audit ◽  
Good Corporate Governance ◽  
The Board Of Directors

The purpose of this study was to determine the effect of implementing good corporate governance on financial performance in banking companies. Proxies for good corporate governance are the board of directors, the independent board of commissioners, the audit committee, external audit quality, and institutional ownership. Measurement of banking financial performance uses Return on Assets (ROA). The sample used is 26 samples of banking sector companies listed on the IDX during 2014-2018. The analysis technique uses multiple regression analysis. The results showed that the board of directors and institutional ownership have an influence on financial performance, while the independent board of commissioners, audit committee, and external audit quality have no influence on financial performance. Keywords: Good Corporate Governance;Financial Performance;Banking Sector.

scholarly journals The impact of audit quality, corporate governance, and company characteristics on earnings management

2021 ◽  
Vol 11 (1) ◽  
pp. 107-112
Author(s):  
Yousef Shahwan
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Free Cash Flow ◽  
Statistical Testing ◽  
Return On Assets ◽  
Industrial Firms ◽  
The Impact

This study aims to investigate empirically how the characteristics of the firm; the audit quality and the corporate governance impact the management of earnings. The population employed in this study is industrial firms listed on the Amman Stock Exchange between 2017 and 2019. The method of sampling employed in this study is purposive sampling. 39 firms are analyzed, with 117 items of data being achieved. Also, this study applies statistical testing via multiple regression. The findings show that sales growth, free cash flow, financial leverage, and return on assets all have an impact on earnings management. Meanwhile, other factors such as audit quality, firm size, audit committee, the board size, institutional ownership, and managerial ownership, have not to impact on earnings management.

scholarly journals Corporate governance structure and firm’ financial performance: Evidences from Egypt

2014 ◽  
Vol 10 (1) ◽  
pp. 49-59 ◽  
Author(s):  
Mohammed M. Soliman ◽  
Aiman A. Ragab ◽  
Mohammed B. Eldin
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Audit Committee ◽  
Audit Quality ◽  
Positive Impact ◽  
Governance Structure ◽  
Corporate Governance Structure ◽  
Ceo Duality ◽  
Firm Financial Performance ◽  
The Impact

Recent financial international scandals have generated hyped interest in the area of corporate governance as a mean to mitigate financial problems faced in developing nations. The purpose of this study is to examine the link between corporate governance structure and firm’ financial performance in Egypt. The data for analysis are gathered from manual review of the financial statements and websites of the thirty enterprises that make up the (EGX 30) covering the four years period 2007-2010. Results from the study indicate that board size; the presence of audit committee; and audit quality significantly have relationship with firm’ financial performance measured by ROA and ROE. The results also, indicate that board independence; and institutional ownership have no significant correlation with firm’ financial performance. For CEO duality, the results indicate that CEO duality has a positive impact upon companies’ financial performance measured by ROE, at the same time, is not correlated with the ROA measure of financial performance. This study is important because it offers evidence on the impact of corporate governance structure on firm financial performance. In addition, it provides useful information that is of great value to policy makers, academics and other stakeholders.

scholarly journals The effect of corporate governance on compliance with Indian Accounting Standards: An empirical analysis of post IFRS convergence

2021 ◽  
Vol 10 (4) ◽  
pp. 40-58
Author(s):  
Faozi A. Almaqtari ◽  
Waleed M. Al-Ahdal ◽  
Nandita Mishra ◽  
Mosab I. Tabash
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Accounting Standards ◽  
Board Independence ◽  
Listed Firms ◽  
Corporate Governance Mechanisms ◽  
The Impact ◽  
Big Four

This study explores the impact of corporate governance mechanisms (CGMs) of compliance with Indian Accounting Standards (Ind-AS). A sample of 70 firms listed on Bombay Stock Exchange (BSE) over a period of two years from 2016–2017 to 2017–2018 was used. The results revealed that board independence, size, expertise, size of the audit committee, expertise and independence exhibit a significant influence on compliance with Ind-AS. However, no significant effect was found regarding the board and audit committee diligence, foreign ownership and audit quality by Big-Four. The current study fills an existing gap in compliance of accounting standards and corporate governance literature in the context of the emergent market. It uses a methodology of comprehensive compliance index to evaluate the level of disclosure of Ind-AS that could generalize the results and benefit other listed firms. Finally, as a practical contribution, the present study brings useful insights and empirical evidence which are very beneficial and are of significant importance to investors, practitioners, academicians and policymakers. It is considered as one of the pioneering studies in this context and a battery for further research. The study recommends that more prominence should be given to compliance with Ind-AS and an overseeing body for compliance with Ind-AS should be created.

scholarly journals PENGARUH EARNINGS MANAGEMENT TERHADAP FUTURE PROFITABILITY TERKAIT DENGAN OWNERSHIP STRUCTURE, FIRM SIZE DAN CORPORATE GOVERNANCE PRACTICES

Media Ekonomi ◽  
2017 ◽  
Vol 20 (2) ◽  
pp. 55
Author(s):  
Ikhsan Yudha Asmara ◽  
Felizia Arni Rudiawarni
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Ownership Structure ◽  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Manufacturing Sector ◽  
The Future ◽  
Governance Practices ◽  
The Impact

This study aims to determine how the effect of earnings management on future profitability business entity engaged in the manufacturing sector listed on the Indonesia Stock Exchange, and how the effects of the ownership structure, company size, and the practice of corporate governance (proxied by the audit quality, independent board member and audit committee) regarding the impact of earnings management on the future profitability of manufacturing sector enterprises listed on the Stock Exchange. This study used a sample of manufacturing sector companies listed on the Indonesia Stock Exchange in the period 2008-2010. The samples used in this study were 262 observations. The sampling method used was probability sampling - judgment / purposive sampling. Independent variables used in this study are earnings management (proxied by the CFO, NDAC, and DAC), ownership structure (proxied by DFAM and INST), firmsize, and corporate governance practices (proxied by the AUDIT, BOD, and AUDCOM). The dependent variable in this study is the future profitability proxied by the variable "and CFOT earnt + 1 + 1. The results of this study were (1) earnings management proved to have a significant impact on the future profitability of manufacturing sector enterprises. The influence that appears different depending on the proxy used; (2) The ownership structure did not have an influence on the behavior of earnings management related to future profitability of manufacturing sector enterprises; (3) firmsize not affect earnings management behaviors related to future profitability of manufacturing sector enterprises; overall corporate governance practices are not effective in influencing the behavior of earnings management related to the future profitability of manufacturing sector enterprises. Keywords  :   future profitability, earnings management, ownership structure, corporate governance practice

Impact of audit committee characteristics and external audit quality on firm performance: evidence from India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Waleed M. Al-ahdal ◽  
Hafiza Aishah Hashim
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Audit Committee ◽  
Audit Quality ◽  
Random Effect ◽  
Policy Formulation ◽  
External Audit ◽  
Content Type ◽  
Firm Financial Performance ◽  
The Impact

Purpose The purpose of this paper is to analyse the influence of audit committee characteristics and external audit quality on the performance of non-financial public limited companies listed on the National Stock Exchange 100. Design/methodology/approach One-way random effect panel data regression was applied to 74 non-financial firms in the Nifty 100 from 2014 until 2019. The overall audit committee index and external audit index were built based on the new Indian Companies Act, 2013 and on a review of the literature to capture the impact of the new Act on firm financial performance. Findings The outcome of the study revealed that there is lack of evidence to show that audit committee characteristics improve the performance of top Indian non-financial listed firms. However, external audit quality was found to have a significant positive impact on the financial performance of firms as measured by Tobin’s Q, while firm size and leverage were found to have a significant impact on the financial performance of firms as measured by return on assets and return on equity. Practical implications This paper will be greatly beneficial for financial practitioners and policymakers because it provides practical suggestions and recommendations about the types of external audit that are indispensable for the overall effectiveness and performance of firms. The study findings may also aid strategic policy formulation and execution for better corporate governance practices for the purpose of profit and wealth maximisation. Originality/value To the best of the authors’ knowledge, to date, no previous research has evaluated the effects of audit committee features and external audit quality on the financial performance of firms in India after the implementation of the new Companies Act, 2013. Hence, this study fills this void in the present literature by examining the overall features of the audit committee and external audit and their impact on firm performance in the setting of India.

scholarly journals The effect of corporate governance indicators on enhancing the financial performance of industrial listed companies on the Amman Stock Exchange

Accounting ◽  
2021 ◽  
pp. 415-422
Author(s):  
Thaer Ahmad Abutaber ◽  
Ahmad Eqab Al Bzur ◽  
Mohammad Husam Odeh ◽  
Mustafa Alathamneh ◽  
Manaf Al-Okaily ◽  
...  
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Two Dimensions ◽  
Industrial Companies ◽  
Governance Indicators ◽  
Amman Stock Exchange ◽  
Research Findings ◽  
The Impact

This paper investigated the impact of corporate governance on enhancing the financial performance of industrial companies. The sample of the research consisted of 55 industrial companies listed at the Amman Stock Exchange (ASE) during the period 2014-2018. Data were collected from the firms' annual financial statements using content analysis approach. The results confirmed that the audit committee and ownership structure had positive and significant effects on two dimensions of financial performance. In view of research findings, the study recommends companies to raise some awareness about the importance of corporate governance, in addition to strengthening supervisory procedures by legislators.

scholarly journals Value Engineering for the Role of Internal Audit Quality in Activating the Principles of Corporate Governance: A Case of Non-financial Firms on Iraqi Stock Exchange

2018 ◽  
Vol 7 (4.7) ◽  
pp. 145
Author(s):  
Mohammed Hassan Sabbar ◽  
Safa Eltyaf Abdalamer
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Internal Audit ◽  
Value Engineering ◽  
Positive Relation ◽  
Qualified Person ◽  
Governance Practices ◽  
The Impact

The main purpose of this study is to investigate the impact of the quality of internal audit on the effectiveness of corporate governance in Iraqi listed firms. The frequency of audit committee meeting and board size are in a negative and significant relationship of the audit committee and firm size are only variables which in negative relation with corporate governance index. Whereas all the other variables which independence of audit committee are, qualification if independent director in audit committee and audit committee to board independence are in positive relation to corporate governance. The results indicate that along with independence its mandatory to have qualified person on a board committee. Similarly, the frequency of audit committee also appears in positive relation to corporate governance practices for the sample of Iraqi firm. The results of the study provide support with agency theory. This study will be helpful for policymakers and corporate heads in formulating policies related to development and implementation of corporate governance.  

THE EFFECT OF CORPORATE GOVERNANCE AND CORPORATE CULTURE ON FIRM MARKET VALUE TO IMPROVE FINANCIAL PERFORMANCE

2020 ◽  
Vol 1 (6) ◽  
pp. 930-940
Author(s):  
Fathiyah Fathiyah ◽  
Mufidah Mufidah
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Corporate Culture ◽  
Boards Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Descriptive Analysis ◽  
Market Value ◽  
Company Performance ◽  
Financial Company

The purpose of this research is to analyze the effect of corporate governance and corporate culture  on firm market value to improve financial performance. Corporate governance  is measured by audit  committee,boards of directors, board meeting and nomination . Corporate culture is measured by Corporate culture promotion While financial  company performance is measured by return on assets.  This research was conducted on companies listed on the Indonesia Stock exchange on indexed LQ 45 for period of 2016-2018. The sample was selected for 25 companies. The method of analysis uses associate descriptive analysis with  path analysis. Based on the results of the study found that corporate governance and culture promotion indirectly effect on financial performance with firm market value as intervening variable.

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