scholarly journals The Impact of Joint Audit on Fraud Detection in Financial Statements From the Point of View of Auditors

2020 ◽  
Vol 11 (1) ◽  
pp. 153
Author(s):  
Ola Muhammad Khersiat
Keyword(s):  
Board Of Directors ◽  
Fraud Detection ◽  
Financial Statements ◽  
Point Of View ◽  
Financial Industry ◽  
Operational Characteristics ◽  
The Board Of Directors ◽  
The Impact ◽  
The Relationship

This study aimed to identify the application of joint audits to the detection of fraud in financial statements as well as the impact of joint audits on the detection of fraud in financial statements from the point of view of Jordanian auditors. The study focused on investigating the impact of joint audits of the procedures of understanding management and the board of directors, as well as examining the relationship with the relevant parties, the company and financial industry, financial results and operational characteristics in order to identify the impact of joint audits on detecting fraud in financial statements through these procedures. Results indicate that there is no statistically significant impact of joint audits on the detection of fraud in the financial statements at the level of (5%) for all fraud detecting procedures in the financial statements. The study recommends not adopting or applying joint audit.

scholarly journals The Impact of the Board of Directors Characteristics on the Risk of IPO Earnings Forecasts Errors

2019 ◽  
Vol 15 (11) ◽  
pp. 75
Author(s):  
Abdulaziz Mohammed Alsahlawi ◽  
Mohammed Abdullah Ammer
Keyword(s):  
Regression Analysis ◽  
Board Of Directors ◽  
Earnings Forecasts ◽  
Financial Statements ◽  
Ordinary Least Squares ◽  
Governance Mechanism ◽  
The Board Of Directors ◽  
Corporate Governance Mechanism ◽  
The Impact ◽  
The Relationship

This paper aimed to investigate the effect of corporate governance mechanism on the risk of IPO earnings forecasts errors. It focuses on the relationship between the board of directors characteristics and the risk of earnings forecasts errors. Required data was gathered from 190 Malaysian IPO prospectuses for the year 2002 to 2012, after which data was analyzed using ordinary least squares (OLS) regression. Based on the obtained findings, the earnings forecasts of Malaysian IPO reflected a pessimistic picture with unsatisfactory percentage of accuracy. In particular, the findings of multiple regression analysis of the relationships between the size, independence and CEO duality of the board of directors, and the risk of earnings forecasts errors were negative and insignificant. The study findings have several implications for relevant individuals, including regulators, investors, financial analysts and financial statements users.

scholarly journals The Impact of Corporate Governance Characteristics on the of Financial Distress

2016 ◽  
Vol 3 (2) ◽  
pp. 162
Author(s):  
Mahdi Filsaraei ◽  
Reza Jarrahi Moghaddam
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Financial Distress ◽  
Financial Statements ◽  
Multivariate Regression Analysis ◽  
Company Stock ◽  
Governance Indicators ◽  
The Board Of Directors ◽  
Qualified Audit Opinion ◽  
The Impact

Given the importance of corporate governance for increasing the monitoring of company operations, i.e., reducing information asymmetry and increasing control over operations, in this study, we investigate some indicators of corporate governance and financial distress as one of the most important criteria in the decisions of the users of financial statements. Corporate governance Indicators that have been mentioned in this study, including the independence of the board of directors (the ratio of non-executive members), institutional investors and duality of CEO and Chairman of the Board of Directors. This study is applied research and the required information is gathered from financial statements of listed companies on the TSE. Using a sample of 82 company stock during the period 2010-2014 and multivariate regression analysis, the results of the analysis of information gathered indicates that institutional ownership reduces the financial distress. However, there was no significant relationship between board independence (proportion of outside board members) and the duality of CEO and Chairman of the Board with the financial distress. The results also indicate that financial leverage and a qualified audit opinion increases financial distress and firm size and management performance reduces it.

scholarly journals The effectiveness of the internal corporate governance mechanism and the ownership of the government and agencies

Accounting ◽  
2021 ◽  
Vol 7 (7) ◽  
pp. 1655-1660
Author(s):  
Khaled Salmen Aljaaidi
Keyword(s):  
Board Of Directors ◽  
Negative Impact ◽  
Governance Mechanism ◽  
Board Size ◽  
Internal Governance Mechanisms ◽  
The Board Of Directors ◽  
The Government ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

This paper examines the impact of the government and its agencies’ ownership on the effectiveness of one the main internal governance mechanisms, namely; board of directors, for a sample of 140 energy and petrochemical Saudi listed firms over 2012-2019. The Saudi Arabia provides an interesting context due to the domination of government-linked corporations’ ownership. This setting arranges for the impact of such ownership on the board of directors’ monitoring and advisory roles. The board of directors’ effectiveness is measured as an interaction term of the board size and meetings of the board of directors. The study finds that government-linked energy and petrochemical corporations’ ownerships are inversely related to the board of directors’ effectiveness. This result is sensitive to the measurement of the board of directors’ effectiveness as each variable consisting of the board of directors’ effectiveness was examined individually. The study also finds that government-linked corporations’ ownership had a strong negative impact on the board size. In contrast, the proposed model does not provide any evidence supporting the relationship of the government-linked corporations’ ownerships with board meetings. Overall, the evidence supports the substitution hypothesis on the relationship of government-linked corporations and board of directors’ effectiveness.

The impact of the board of directors and the Shariah board on the financial soundness of Islamic banks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Afef Khalil
Keyword(s):  
Board Of Directors ◽  
Capital Adequacy ◽  
Islamic Banks ◽  
Z Score ◽  
Data Set ◽  
Content Type ◽  
The Board Of Directors ◽  
Financial Soundness ◽  
The Impact ◽  
The Relationship

Purpose The purpose of the study is to examine the relationship between the board of directors (BODs) and the Shariah board (SB) and assess its impact on the financial soundness of Islamic banks (IBs). Design/methodology/approach The authors use a regression model to test the effects of the relationship between the BOD and the SB on the financial soundness of IBs by applying a panel data set of 61 IBs, covering 18 countries from 2008 to 2014. The dependent variable is the Z-score indicator. To test the robustness of the results, the authors use dependent variables other than the Z-score [A rating of Capital adequacy (C), Asset quality (A), Management (M), Earnings (E), Liquidity (L), and Sensitivity (S) (CAMELS)] for 2018. Findings The results show that meetings between directors and SB members significantly reduce the financial soundness of IBs. The relationship between the BOD and the SB increases conflicts of interest and agency costs. However, a representation of the SB at the BOD meetings and vice versa does not affect financial soundness. The Accounting and Auditing Organization for Islamic Financial Institutions and the Islamic Financial Services Board corporate governance standards do not require the presence of the SB representative at the BOD meetings or vice versa, which justifies the results. Practical implications This study attempts to fill gaps in the literature by investigating the impact of meetings between the SB and the BOD on the financial soundness of IBs across the world. The results suggest that the BOD’s frequent interference in the affairs of the SB can have adverse effects on IBs and should be avoided. Originality/value The authors depart from the previous literature by using three new characteristics that link the BOD to the SB. Methodologically, the authors use three new measures to evaluate this relationship and its effect on the financial soundness of IBs. This study is unique because it explores the comparative impacts of the presence of a SB representative at the BOD meetings and a director at the SB meetings and meetings between the two governing boards of IBs.

scholarly journals Remuneration, risk and performance in Italian companies: An empirical analysis on systems of remuneration in the board of Italian listed companies

2011 ◽  
Vol 9 (1) ◽  
pp. 294-304
Author(s):  
Marco Artiaco
Keyword(s):  
Board Of Directors ◽  
Listed Companies ◽  
Company Performance ◽  
Global Regulators ◽  
Academic Literature ◽  
The Board Of Directors ◽  
Recent Financial Crisis ◽  
And Performance ◽  
The Impact ◽  
The Relationship

The recent financial crisis highlighted the issue of Board of Directors compensation, which had been analyzed by many authors. In fact, there is a vast academic literature on the impact of the compensation of Board of Directors on corporations characterized by the separation of ownership from control. The compensation of Board of Directors has been a subject of debate, also by global regulators like OECD, FSB, Central Bank of Italy and European Commission and many are pushing for an international uniform regulation. This paper aims to investigate the relationship between the board of Directors compensation, the company performance and the risks decided by the Board. The article analyses a sample of Italian listed companies in order to test wether or not the Board of Directors compensation structure could turn into a performance incentive, given the risk taken.

BOARD OF DIRECTORS AS A FACTOR OF FIRM PERFORMANCE IN INNOVATIVE COMPANIES

2019 ◽  
Vol 23 (06) ◽  
pp. 1950060
Author(s):  
IRINA BEREZINETS ◽  
KIRILL BEREZKIN ◽  
YULIA ILINA ◽  
IRINA NAOUMOVA
Keyword(s):  
Firm Performance ◽  
Emerging Markets ◽  
Board Of Directors ◽  
Public Companies ◽  
Composition And Structure ◽  
The Board Of Directors ◽  
The Impact ◽  
The Relationship ◽  
D Investment

The emerging markets undergo constant transformations and changes, and thus, a change of strategy can be critical for companies. However, the impact of R&D investment on firm performance and the role of the board of directors that makes decisions about a company’s innovative activities remain inconclusive. This paper investigates the relationship between a board of directors’ composition and structure in innovative companies and firm performance. Using the panel data of innovative Russian public companies that made R&D investments in 2011–2013, we found a positive relationship between the boards’ independence and ROA as an indicator of firm performance. Moreover, it was shown that innovative companies that establish a strategy committee will on average have a higher ROA ratio than innovative companies without such a committee. Innovative firms in emerging markets might consider creating strategic committees and increasing board independence to enhance their performance and increase the number of successful R&D investments.

Accounting conservatism and corporate governance: evidence from India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Meena Sharma ◽  
Rajbir Kaur
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Audit Committee ◽  
Accounting Conservatism ◽  
Annual Reports ◽  
Content Type ◽  
The Board Of Directors ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

Purpose The paper aims to study the impact of corporate governance variables on the adoption of accounting conservatism by S&P BSE 500 index firms. Design/methodology/approach The period for the study is from 2010–2018. The data has been extracted from the BSE website, annual reports of the sample companies and the Prowess IQ database. Panel data methodology has been used to analyse the impact of the corporate governance variables on accounting conservatism. Accounting conservatism is the dependent variable, which has been measured by using the CONACCR (negative accruals) measure and the independent variables include the characteristics of the board of directors and the audit committee. Findings Overall, the relationship between accounting conservatism and corporate governance indicates a significant impact of corporate governance variables, namely, characteristics of the board of directors and the audit committee, on the accounting conservatism policy of the firm. Originality/value This research explores the benefits of conservatism in resolving agency conflict. Very few studies have captured the relationship of individual components of corporate governance with accounting conservatism. Moreover, this study contributes to the literature regarding the influence of corporate governance variables on the extent of conservatism used in accounting records.

The influence of board characteristics on corporate illegality

2017 ◽  
Vol 25 (2) ◽  
pp. 133-148 ◽  
Author(s):  
Gundeep Kaur Virk
Keyword(s):  
Board Of Directors ◽  
Large Fraction ◽  
Future Research ◽  
Manufacturing Companies ◽  
Cross Sectional ◽  
Data Set ◽  
Content Type ◽  
The Board Of Directors ◽  
The Impact ◽  
The Relationship

Purpose In light of frequent corporate scams and frauds, this paper aims to investigate the relationship of corporate illegality with the board of directors’ characteristics in Indian manufacturing companies. Design/methodology/approach The board of director characteristics of sample companies charged with violation of the Securities Exchange Board of India (SEBI) regulations from 2008 to 2013 are matched to an equivalent-sized control data set. A cross-sectional logistic regression model is applied to test the hypothesized association. Findings The findings suggest that the SEBI violations are less likely to occur when a large fraction of the board of directors consists of independent directors and when the individual directors have multiple appointments on the boards of other companies. However, it is observed that the size of the board and its meetings have no observable association with violation of the SEBI regulations. Research limitations/implications This work is likely to aid future research in exploring the impact of governance mechanisms on the occurrence of illegality. In future, studies may be conducted to investigate the probability of illegal corporate events using a larger sample size and corporate governance variables which have not been examined in the present study. Practical implications The analysis provides corporate policy makers and investors an insight to evaluate the vulnerability of a company being engaged in illegality based on its board features. Originality/value The present study is distinct from previous reports as it makes a novel attempt to gauge the relationship between the board of directors’ characteristics and the occurrence of illegality in the Indian corporate section.

Implementing Reforms

2017 ◽  
Author(s):  
Nils Brunsson
Keyword(s):  
Board Of Directors ◽  
Government Service ◽  
Radical Reform ◽  
Administrative Reforms ◽  
The Board Of Directors ◽  
The Relationship ◽  
A Company

This chapter continues to analyze the relationship between decision and action using a case study on Swedish Rail (Statens Järnvägar, SJ). In February 1987, the board of directors of SJ met to consider a plan drawn up by an international consultancy company to implement a radical reform, the ‘New SJ’. The basic idea was to make the company more businesslike. SJ was to be run as a company and not as a government service, and its corporate aim was to be a profitable business. The chapter addresses the question of why reforms may be difficult to implement. It suggests that there are certain fundamental and common characteristics of administrative reforms which make them difficult to implement by nature.

Women on the board of directors and corporate tax aggressiveness in Australia

2016 ◽  
Vol 29 (3) ◽  
pp. 313-331 ◽  
Author(s):  
Grant Richardson ◽  
Grantley Taylor ◽  
Roman Lanis
Keyword(s):  
Board Of Directors ◽  
Selection Bias ◽  
Tax Avoidance ◽  
Multivariate Regression Analysis ◽  
Corporate Tax ◽  
Content Type ◽  
Tax Aggressiveness ◽  
Self Selection ◽  
The Board Of Directors ◽  
The Impact

Purpose This paper aims to investigate the impact of women on the board of directors on corporate tax avoidance in Australia. Design/methodology/approach The authors use multivariate regression analysis to test the association between the presence of female directors on the board and tax aggressiveness. They also test for self-selection bias in the regression model by using the two-stage Heckman procedure. Findings This paper finds that relative to there being one female board member, high (i.e. greater than one member) female presence on the board of directors reduces the likelihood of tax aggressiveness. The results are robust after controlling for self-selection bias and using several alternative measures of tax aggressiveness. Research limitations/implications This study extends the extant literature on corporate governance and tax aggressiveness. This study is subject to several caveats. First, the sample is restricted to publicly listed Australian firms. Second, this study only examines the issue of women on the board of directors and tax aggressiveness in the context of Australia. Practical implications This research is timely, as there has been increased pressure by government bodies in Australia and globally to develop policies to increase female representation on the board of directors. Originality/value This study is the first to provide empirical evidence concerning the association between the presence of women on the board of directors and tax aggressiveness.

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