scholarly journals Impact of External Auditing Quality and Audit Committees on Accounting Conservatism and the Performance of Industrial Firms Listed at the Amman Stock Exchange

2020 ◽  
Vol 11 (4) ◽  
pp. 556
Author(s):  
Mahmod AL-Rawashdeh Abdalwahab ◽  
Riham Fathi ALkabbji
Keyword(s):  
Internal Control ◽  
Audit Quality ◽  
Stock Exchange ◽  
Audit Fees ◽  
Accounting Conservatism ◽  
Audit Committees ◽  
Industrial Firms ◽  
Amman Stock Exchange ◽  
The Impact ◽  
Quality Features

This study aims to investigate the impact of external auditing quality and audit committees on accounting conservatism and the performance of industrial firms listed at the Amman Stock Exchange. The study has relied on the industrial sector which comprised of 70 industrial firms, while the sample size comprised 54 firms. Audit quality has been addressed in terms of audit quality features (communication with world audit offices, keep client period, audit fees, accounting specialist in the customer industry), while audit committees quality has been analyzed (audit committees independence, audit committees expertise, audit committees meetings). The accruals model has been used to measure accounting conservatism. The firm`s performance has been measured through its market value. The study concluded that audit committees have no impact on accounting conservatism and firm`s performance, while audit quality features have a positive impact on accounting conservatism and firm`s performance. The study has recommended the need to activate the role of audit committees in public shareholding industrial firms since they positively have an impact on raising audit efficiency and control the regulate the firm`s internal control system.

scholarly journals The Impact of Audit Quality Features on Enhancing Earnings Quality: The Evidence of Listed Manufacturing Firms at Amman Stock Exchange

2015 ◽  
Vol 7 (2) ◽  
pp. 255
Author(s):  
Mohammad Abdallah Almomani
Keyword(s):  
Audit Quality ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Manufacturing Firms ◽  
External Audit ◽  
Quality Properties ◽  
Amman Stock Exchange ◽  
The Impact ◽  
Quality Features

<p>The study aims at investigating the impact of external audit quality features on enhancing the quality of accounting profits of the listed manufacturing firms at Amman Stock Exchange (ASE), where continuity of profit has been used as Proxy variable to express the quality of earnings. Indicators of quality of audit, audit office size, auditors' fees, period of customer's retention, type of auditor's opinion, and the specialization in client's industry, were used to measure audit quality. A sample of 45 firms had been selected, and data covering the period 2009-2013 had been collected from these firms, where 225 observations were used in the analysis. The study finds that the earnings of listed manufacturing firms at Amman Stock Exchange are with good quality, and that there is a linear relationship between external audit quality and the quality of reported earnings. Auditors' fees have most important significant effect on earnings quality, followed by auditors' opinion, where others factors has no significant effect on earnings quality. Based on these findings, the study raises several questions about the reliability of audit quality properties by stakeholders in firms, especially investors, when they check the quality of earnings, whenever they need to take a decision. The study recommends further researches regarding the issue by using other metrics to measure earnings quality, and through the addition of other properties to the quality of the audit, such as linked audit offices with auditing global offices, degree of qualification employees, and the opened lawsuits against audit office.</p>

scholarly journals The Impact of Audit Committe Characteristics on Audit Quality

2020 ◽  
Vol 23 (3) ◽  
pp. 363
Author(s):  
Paradisa Sukma, Yustrida Bernawati
Keyword(s):  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Audit Fees ◽  
Audit Committees ◽  
Observation Data ◽  
Manufacturing Companies ◽  
Ols Regression ◽  
The Impact

This research was conducted to investigate the effect of audit committee characteristics on audit quality. The characteristics of the audit committee used in this study are the number of audit committees, number of audit committee meetings, audit committee education background, and audit committee experience while audit quality is measured using audit fees. This study uses manufacturing companies listed on the Indonesia Stock Exchange in 2016 - 2018 with 70 observation data and uses OLS regression. The results of this study indicate all four Audit Characteristics, only size and experience significantly influence audit quality. While audit meetings and education do not significantly affect audit quality. Likewise with the education that can not ensure the capabilities possessed by members of the audit committee. Overall, the effectiveness of the audit committee has no significant effect on audit quality.

scholarly journals Assessment of Factors Affecting Audit Quality: “A Study of Selected Companies Listed on the Ghana Stock Exchange”

2019 ◽  
Vol 9 (2) ◽  
pp. 436
Author(s):  
John Kwaku Mensah Mawutor ◽  
Borketey-La Francis B ◽  
Asamoah Douglas Obeng
Keyword(s):  
Audit Committee ◽  
Audit Quality ◽  
Negative Impact ◽  
Stock Exchange ◽  
Audit Fees ◽  
Audit Committees ◽  
Cross Sectional ◽  
Factors Affecting ◽  
Ghana Stock Exchange ◽  
The Impact

This study sought to establish the factors affecting audit quality in listed companies in Ghana. A cross-sectional method was used in the analysis in which a linear regression model was also used to establish the impact of the independent variables namely; auditor size, the existence of audit committee and the logarithm of the auditor fees on the independent variable audit quality. The logarithm of audit fees was taken to normalize the data. The dependent variable “leverage ratio” (total debts divided by total assets of the company) used to measure debt pressure by the companies and also used as a proxy for the audit quality because high debts in relation to company assets can lead to bankruptcy. Twenty- five (25) companies listed on the Ghana Stock exchange were used as the sample of the study. The results of the analysis indicated that logarithm of audit fees, existence of audit committee, and auditor size were all significant in influencing the leverage of the companies and thus audit quality. The size of audit firm had a negative impact on audit quality, while the companies that do not have audit committees are more likely to have poor audit quality. The logarithm of audit fees was positively related with the audit quality. It is recommended that audit fees should be regulated by The Institute of Chartered Accountants Ghana (ICAG) as well as taking action against audit companies which do not adhere to auditing standards and the officials of companies who are involved in misstating the financial statements and other financial records with the intention of concealing the true and actual facts of the financial position of the company.

scholarly journals The Impact of Audit Committees Controls Commitment on Strengthening Corporate Governance: Evidence from Jordan

2019 ◽  
Vol 11 (3) ◽  
pp. 69
Author(s):  
Fares Jamiel Hussein Alsufy
Keyword(s):  
Corporate Governance ◽  
Subject Matter ◽  
Boards Of Directors ◽  
Stock Exchange ◽  
Audit Committees ◽  
Staff Members ◽  
Amman Stock Exchange ◽  
The Subject ◽  
The Impact ◽  
Working Mechanisms

This study aims to determine the extent to which the Boards of Directors of the industrial Jordanian Companies listed on Amman Stock Exchange (ASE) comply with the controls of composing audit committees, their working mechanisms, and the impact on the corporate governance. To achieve the objectives of this study, (155) questionnaires were developed and distributed to the staff members relevant to the subject matter of the study. Out of distributed questionnaire, (144) responded questionnaires only were collected from respondents. The number of questionnaires analyzed was (135) and a T-test has been used to test the hypotheses. The results of the study showed that there is a statistically significant correlation on the existence of the commitment of the Boards of Directors of the Jordanian Listed Companies to the disciplines of audit committees&rsquo; formation and their mechanisms of work. The results also demonstrated the existence of impact of this commitment on the governance of these companies. The commitments to these controls and their work mechanisms have been developed to enhance corporate governance in Jordanian companies.

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.

The impact of audit committee effectiveness on audit fees and non-audit service fees

2018 ◽  
Vol 31 (2) ◽  
pp. 174-191 ◽  
Author(s):  
Muhammad Jahangir Ali ◽  
Rajbans Kaur Shingara Singh ◽  
Mahmoud Al-Akra
Keyword(s):  
Audit Committee ◽  
Audit Quality ◽  
Audit Fees ◽  
Audit Committees ◽  
Regulatory Requirements ◽  
Content Type ◽  
Financial Expertise ◽  
The Difference ◽  
Accounting Expertise ◽  
The Impact

Purpose The purpose of this study is to examine the impact of audit committee effectiveness on audit fees and non-audit service (NAS) fees in a less regulatory environment. Design/methodology/approach The authors construct a composite audit committee effectiveness measure incorporating audit committee independence, diligence, size, financial expertise and the chairperson’s accounting expertise. Findings The authors find that audit committee effectiveness has a positive significant impact on both audit fees and NAS fees. This suggests that effective audit committees can hold auditors accountable resulting in better audit quality and consequently higher audit fees. Originality/value The link between more effective audit committees with higher NAS purchases can be explained in light of the difference in regulatory requirements providing audit committees with decision rights on the use of NASs, therefore approving more NAS and increasing NASF. Additional tests and robustness analyses confirm the results.

scholarly journals The impact of financial constraints on inventory investment: Empirical evidence from Jordan

2016 ◽  
Vol 6 (4) ◽  
pp. 494-502
Author(s):  
Mohammad Gharaibeh ◽  
Ziad Mohammad Zurigat ◽  
Ra’d Ananbeh
Keyword(s):  
Financial Constraints ◽  
Stock Exchange ◽  
Inventory Level ◽  
Target Level ◽  
Industrial Firms ◽  
Speed Of Adjustment ◽  
Inventory Investment ◽  
Amman Stock Exchange ◽  
Inventory Holding ◽  
The Impact

This study aims at investigating whether Jordanian industrial firms have a target inventory level, and how fast they move toward it when any deviation exists. In addition, it investigates whether the financial constraints have an impact on inventory investment related to the target level, and the speed of adjustment. Using the panel data for a sample of 50 industrial firms listed on the Amman Stock Exchange (ASE) over the period (2001-2014). The empirical results suggest that Jordanian industrial firms have a target inventory level. However, Jordanian industrial firms adjust their actual inventory holding to their target level slower than their counterparts in developed and developing countries. Moreover, the results show that the financial constraint do affect inversely the adjustment speed, and makes the financially constrained firms reduce their level of inventory beyond the target level by more than others.

Sales nationality and debt financing impact on firm’s performance and risk

2017 ◽  
Vol 12 (1) ◽  
pp. 103-126 ◽  
Author(s):  
Ahmad Y. Khasawneh ◽  
Qais A. Dasouqi
Keyword(s):  
Fixed Effects ◽  
Negative Impact ◽  
Stock Exchange ◽  
Systematic Risk ◽  
Debt Financing ◽  
Industrial Firms ◽  
Content Type ◽  
Domestic Firms ◽  
Amman Stock Exchange ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of debt financing on both performance and systematic risk in Amman Stock Exchange listed firms. The authors focus the study to analyze the differences between services and industrial firms in one sense and the differences between international and domestic firms in the other sense, as the study depends on the geographical distribution of sales to classify the nationality of firms. Design/methodology/approach The study sample includes all listed Jordanian firms in Amman Stock Exchange from 2005 to 2013 for both industrial and services sectors. Using panel data techniques, fixed effects regression with modified Driscoll-Kraay standard error as a remedy for heteroscedasticity problem is employed. Findings The results show that there is a significant negative impact of debt financing on the firm’s performance, where the sector and the sales nationality play an important role. Moreover, the results indicate that there is a significant positive impact of debt financing on the firm’s systematic risk. Taking the sector and sales nationality into consideration, the authors find that the debt financing has no significant impact on the systematic risk of services firms and domestic firms. Additionally, the findings indicate that services firms and international firms are, on average, more riskier than industrial firms and domestic firms, respectively. Originality/value The paper provides a visibility on the comparison between international and local firms in Jordan in terms of the impact of debt financing on the financial performance and systematic risk in one research.

scholarly journals Concentrated Ownership Structure and Audit Quality: New Evidence from Nigeria

2020 ◽  
Vol 5 (3) ◽  
Author(s):  
Akinwunmi Abiodun Jelil ◽  
Dada Olajide Samuel ◽  
Ajayi-Owoeye Ayooluwa Olotu ◽  
Kwarbai Jerry Danjuma
Keyword(s):  
Internal Control ◽  
Audit Quality ◽  
Stock Exchange ◽  
Secondary Data ◽  
Ownership Concentration ◽  
Annual Reports ◽  
Probability Method ◽  
Manufacturing Companies ◽  
Concentrated Ownership ◽  
The Impact

Shareholders with a large stake in a company may have greater incentives to monitor and take corrective actions, because they partially internalize the benefits from their monitoring effort. This study examined the impact of concentrated ownership on audit quality as measured by auditors’ tenure of 36 manufacturing companies quoted on the NSE. The sample size was selected using non-probability method of sampling from a population of 185 quoted companies on the Nigerian Stock Exchange. The study adopted experimental research design and secondary data extracted from the audited annual reports of the firms under consideration covering a period 2007 to 2017 was used. The study found that ownership concentration has no statistically significant impact on auditors’ tenure. The study therefore recommends that ownership concentration should be maintained at a controllable level; the insignificant impact of concentrated ownership on auditors’ tenure as evident in this study might be the result of inefficient monitoring by large owners. But when ownership concentration by large ownership is maintained at a controlling level, firm values and other performance parameters become positive which may be as a result of an effective internal control system against the expropriation of resources and exploitation of minority shareholders by large shareholders.

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