Board Leadership Structure, Audit Committee and Audit Quality: Evidence from Manufacturing Companies in Sri Lanka

Corporate Governance as a mechanism helps to align management's goals with those of the stakeholders that are to increase firm performance. The aim of this study is to identify the relationship between board leadership structure and firm performance of listed companies in Sri Lanka during the period of 2014-2016. The data was collected from the secondary data sources and board leadership structure is measured by CEO duality. The sample of this study consists of 100 firms listed in Colombo Stock Exchange based on market capitalization. For the purpose of data analysis, Pearson’s correlation analysis and independent sample t-test were used to examine the hypotheses of this study. The findings reveal that board leadership structure is positively correlated with firm performance in terms of Tobin’s Q and there is no significant difference in firm performance between CEO duality firms & non-duality firms.

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Corporate governance reporting in Bangladesh

International Journal of Ethics and Systems ◽

10.1108/ijoes-02-2019-0035 ◽

2019 ◽

Vol 36 (1) ◽

pp. 42-57 ◽

Cited By ~ 2

Author(s):

Abdur Rouf ◽

M. Akhtaruddin

Keyword(s):

Corporate Governance ◽

Audit Committee ◽

Securities And Exchange Commission ◽

Annual Reports ◽

Stock Exchanges ◽

Content Type ◽

Management Accountants ◽

Board Leadership ◽

Leadership Structure ◽

Board Leadership Structure

Purpose This study aims to investigate the extent and nature of corporate governance reporting (CGR) in corporate annual reports of Bangladesh. The aim of the study to test empirically the relationship between corporate governance (CG) and CGR by the listed companies in Bangladesh. The CG examined the proportion of independent directors, board leadership structure, board size, ownership structure and audit committee size. Design/methodology/approach The study is based on a sample of 86 listed non-financial companies in Dhaka stock exchanges (DSE) from the period of 2015-2017 and all the companies are selected by judgment Sampling. The study has been used as an unweighted relative disclosure index for measuring CGR. Findings The empirical results indicate that board leadership structure (BLS) is positively associated with the level of CGR. In contrast, the percentage of equity owned by the insiders to all equity of the firm is negatively associated with the level of CGR. Practical implications Findings of this study have important implications for regulatory authority, enforcement agencies such as Institute of Cost and Management Accountants of Bangladesh, Institute of Chartered Accountants of Bangladesh, Bangladesh Securities and Exchange Commission, DSE, policymakers, shareholders and others who have an interemaammast in CG. Originality/value Finding of the study will be a benchmark for policymakers and implementers in torching the avenues of improvement in raising the level of CG reporting.

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Corporate governance, cultural factors and voluntary disclosure: Evidence from selected companies in Bangladesh

Corporate Board role duties and composition ◽

10.22495/cbv8i1art4 ◽

2012 ◽

Vol 8 (1) ◽

pp. 48-61 ◽

Cited By ~ 5

Author(s):

Md. Akhtar Uddin ◽

Md. Abdur Rouf

Keyword(s):

Corporate Governance ◽

Voluntary Disclosure ◽

Audit Committee ◽

Listed Companies ◽

Cultural Factors ◽

Board Size ◽

Management Ownership ◽

Board Leadership ◽

Leadership Structure ◽

Board Leadership Structure

This research aims to test empirically the relationship between corporate governance, cultural factors and voluntary disclosure by the listed companies in Bangladesh. The corporate governance factors examined are proportion of independent non-executive directors (INDs), board leadership structure, management ownership, board size and audit committee size. The extent of voluntary disclosure level is measured using 68 items of information. Data are taken from annual reports of the listed companies in Bangladesh. The result shows a positive association between board size, board leadership structure, audit committee size and voluntary disclosure. However, no evidence is found to support the contention that independent directors are associated with increased disclosure, consistent with previous studies. Higher education of the CEO and CFO is positively related to the level of voluntary disclosure. The result also indicates that the extent of voluntary disclosures is negatively associated with a higher management ownership

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KOMITE AUDIT SEBAGAI PEMODERASI PENGARUH WORKLOAD DAN MASA PERIKATAN AUDIT PADA KUALITAS AUDITe

Jurnal Ilmiah Akuntansi dan Bisnis ◽

10.24843/jiab.2016.v11.i01.p06 ◽

2016 ◽

Author(s):

Theresia Julina Rusli ◽

I Dewa Nyoman Wiratmaja

Keyword(s):

Audit Committee ◽

Sampling Method ◽

Audit Quality ◽

Negative Impact ◽

Positive Impact ◽

Stock Exchange ◽

Manufacturing Companies ◽

Quality Audit ◽

Final Sample ◽

The Impact

This research aims to find empirical evidence about the impact of workload and audit tenure on audit quality and using audit committee as a moderating variable. This research focused on manufacturing companies that listed on the Indonesia Stock Exchange. Sample was collected using purposive sampling method and resulted 31 companies as a final sample. The data are analyzed by using Moderated Regression Analysis (MRA). The results of this research indicate that the workload has a negative impact on audit quality. Audit tenure has a positive impact on audit quality. Audit committee reduces the negative impact of workload on audit quality. And audit committee reduces the positive impact of audit tenure on audit quality.

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Pengaruh Audit Tenure, Komite Audit Dan Audit Capacity Stress Terhadap Kualitas Audit

JURNAL EKSPLORASI AKUNTANSI ◽

10.24036/jea.v1i2.94 ◽

2019 ◽

Vol 1 (2) ◽

pp. 543-555

Author(s):

Stephanie Yolanda ◽

Fefri Indra Arza ◽

Halmawati Halmawati

Keyword(s):

Significant Influence ◽

Audit Committee ◽

Audit Quality ◽

Stock Exchange ◽

Secondary Data ◽

Manufacturing Companies ◽

Significance Level ◽

Earnings Surprise ◽

Data Collection Technique ◽

Benchmark Approach

This study aims to determine the effect of the audit tenure, audit committee, and audit capacity stress on audit quality as measured by earnings surprise benchmark approach. The research used secondary data. The population was all manufacturing companies listed in Indonesia Stock Exchange in the period of 2015-2017. The data collection technique used is purposive sampling and 303 samples obtained data. The independent variables were audit tenure, audit committee, and audit capacity stress at the significance level of 5%. This study using logistic regression analysis techniques. The result of the research showed that audit tenure had no significant influence on audit quality with a significance level that is equal to 0.145, audit committee had no significant influence on audit quality a significance level that is equal to 0.652, and audit capacity stress had no significant influence on audit quality a significance level that is equal to 0.522 of the manufacturing companies listed in Indonesia Stock Exchange

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THE IMPACT OF AUDIT COMMITTEE CHARACTERISTICS ON AUDIT QUALITY: EVIDENCE FROM SAUDI ARABIA

International Review of Management and Marketing ◽

10.32479/irmm.11437 ◽

2021 ◽

Vol 11 (4) ◽

pp. 1-12

Author(s):

Helmi A. Boshnak

Keyword(s):

Saudi Arabia ◽

Audit Committee ◽

Audit Quality ◽

The Impact ◽

Quality Evidence

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Board leadership structure and earnings quality

Asian Journal of Accounting Research ◽

10.1108/ajar-05-2018-0002 ◽

2018 ◽

Vol 3 (1) ◽

pp. 82-111 ◽

Cited By ~ 2

Author(s):

Chinedu Francis Egbunike ◽

Augustine N. Odum

Keyword(s):

Earnings Quality ◽

Main Concern ◽

Board Structure ◽

Executive Directors ◽

Board Size ◽

Ceo Duality ◽

Content Type ◽

Board Leadership ◽

Leadership Structure ◽

Board Leadership Structure

Purpose One main concern and issue affecting earnings quality is the extent to which managers manipulate earnings to mislead stakeholders about the underlying economic performance of the company or to influence contractual outcomes that depend on reported accounting numbers. This study builds on prior research and examines empirically the relationship between board leadership structure and earnings quality of manufacturing firms in Nigeria. The purpose of this paper is to specifically focus on four board structure characteristics: board size, composition, proportion of non-executive directors and CEO duality. Design/methodology/approach Data used for this investigation were collected from secondary sources, i.e. annual reports and accounts. The study used the Pooled OLS regression model to examine the effect of the board structure on earnings management for a sample of 45 non-financial listed Nigerian companies (conglomerates, consumer goods and industrial goods firms) for the years 2011 to 2016. Findings Based on the analysis, board size and board composition were positive and significant. However, proportion of non-executive directors was negative and significant; while, CEO duality was positive and statistically significant. It was consequently recommended that audit firms should review their audit business model and become more circumspect of their client, e.g. provide fraud assessment and checks for earnings quality. Boards should not just reflect size but rather the skills and expertise of individuals appointed to the board. Furtherance to this, the effectiveness of boards can be improved by committees and sub-committees allocation of duties. Originality/value Few studies have addressed this area in the country.

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The Role of Board Leadership Structure in Firm Governance

10.1093/acrefore/9780190224851.013.372 ◽

2021 ◽

Author(s):

Danuse Bement ◽

Ryan Krause

Keyword(s):

Firm Performance ◽

Independent Director ◽

Negative Consequences ◽

Ceo Duality ◽

Board Chair ◽

Board Committees ◽

Board Leadership ◽

Leadership Structure ◽

Board Leadership Structure

Boards of directors are governing bodies that reside at the apex of the modern corporation. Boards monitor the behavior of firm management, provide managers access to knowledge, expertise, and external networks, and serve as advisors and sounding boards for the CEO. Board attributes such as board size and independence, director demographics, and firm ownership have all been studied as antecedents of effective board functioning and, ultimately, firm performance. Steady progress has been made toward understanding how boards influence firm outcomes, but several key questions about board leadership structure remain unresolved. Research on board leadership structure encompasses the study of board chairs, lead independent directors, and board committees. Board chair research indicates that when held by competent individuals, this key leadership position has the potential to contribute to efficient board functioning and firm performance. Researchers have found conflicting evidence regarding CEO duality, the practice of the CEO also serving as the board chair. The effect of this phenomenon—once ubiquitous among U.S. boards—ranges widely based on circumstances such as board independence, CEO power, and/or environmental conditions. Progressively, however, potential negative consequences of CEO duality proposed by agency theory appear to be counterbalanced by other governance mechanisms and regulatory changes. A popular mechanism for a compromise between the benefits of CEO duality and independent monitoring is to establish the role of a lead independent director. Although research on this role is in its early stage, results suggest that when implemented properly, the lead independent director can aid board monitoring without adding confusion to a unified chain of command. Board oversight committees, another key board leadership mechanism, improve directors’ access to information, enhance decision-making quality by allowing directors to focus on specialized topics outside of board meetings, and increase the speed of response to critical matters. Future research on the governance roles of boards, leadership configurations, and board committees is likely to explore theories beyond agency and resource dependence, as well as rely less on collecting archival data and more on finding creative ways to access rarely examined board interactions, such as board and committee meetings and executive sessions.

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