scholarly journals Analysis of the Information Disclosure of Commercial Banks’ Internal Control

2017 ◽  
Vol 9 (5) ◽  
pp. 77
Author(s):  
Fangliang Huang ◽  
Jing Chen ◽  
Hui Ma ◽  
Qiaoping Hou
Keyword(s):  
Internal Control ◽  
Commercial Banks ◽  
Voluntary Disclosure ◽  
Information Disclosure ◽  
Audit Committee ◽  
Positive Impact ◽  
Annual Reports ◽  
Control Information ◽  
The Board Of Directors

By adopting the content analysis approach, this paper selects the annual reports of 45 China’s commercial banks to analyze the influencing factors of internal control information disclosure. The quality of internal control information disclosure of listed banks tends to be better than non-listed banks. Our empirical study shows that the factors of the exchanges of the banks’ listing, the proportion of the number of independent directors in the board of directors, and the times of the audit committee meetings have a significant positive impact on the quality of internal control information disclosure of commercial banks. To improve the quality of the internal control information disclosure of commercial banks, we put forward such suggestions as amending the supervision system, reducing the listing threshold and creating opportunities for listing for small and medium sized commercial banks, developing voluntary disclosure incentive policies, and intensifying effective punishment measures against and misbehavior in the information disclosure.

Internal control quality and voluntary disclosure: does CEO duality matter?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hichem Khlif ◽  
Khaled Samaha ◽  
Ines Amara
Keyword(s):  
Internal Control ◽  
Voluntary Disclosure ◽  
Positive Impact ◽  
Emerging Market ◽  
Annual Reports ◽  
Structural Power ◽  
Ceo Duality ◽  
Content Type ◽  
Corporate Reporting ◽  
Control Quality

PurposeThe authors examine the association between internal control quality (ICQ) and voluntary disclosure and test whether chief executive officer (CEO) duality, as a proxy for CEO structural power, moderates such a relationship in an emerging market (Egypt).Design/methodology/approachICQ is measured using a survey of external auditors, while a content analysis approach is used to measure the level of voluntary disclosure in annual reports.FindingsBased on a sample of 512 firm-year observations over the period of 2007–2014, the authors document that ICQ is positively and significantly associated with voluntary disclosure, suggesting that better controls improve corporate reporting policy. In addition, CEO duality moderates the association between ICQ and voluntary disclosure since this positive relationship association becomes insignificant for companies characterised by CEO duality. These results remain stable after controlling for endogeneity (self-selection problem), political instability and industry characteristics.Research limitations/implicationsThe findings of the study provide preliminary evidence on the association between ICQ and voluntary disclosure, and how CEO structural power may affect this association. Future empirical investigations may extend this work to cover the relationship between ICQ and other attributes of corporate transparency including earnings quality and accounting conservatism.Practical implicationsThe findings highlight the need for Egyptian regulators to enact new rules obliging firms to communicate information about ICQ or charging auditors to report information about firm's ICQ in their reports. The results also alert policymakers about the adverse effect of combined leadership structure (CEO duality) since it mitigates the positive impact of ICQ on voluntary disclosure.Originality/valueThe authors contribute to internal control literature by exploring the association between ICQ and voluntary disclosure on an emergent unregulated market with respect to internal control disclosure. They also highlight how CEO duality, as a proxy for CEO power, mitigates the beneficial effect of ICQ on corporate reporting policy on the Egyptian stock exchange (EGX).

scholarly journals The empirical evidence of the voluntary information disclosure in the annual reports of banking companies: The case of Bangladesh

2007 ◽  
Vol 4 (3) ◽  
pp. 111-125 ◽  
Author(s):  
Mohammed Hossain ◽  
Peter Taylor
Keyword(s):  
Financial Reporting ◽  
Commercial Banks ◽  
Voluntary Disclosure ◽  
Information Disclosure ◽  
Annual Reports ◽  
Future Research ◽  
Audit Firm ◽  
Independent Variables ◽  
Political Incentives ◽  
The Relationship

This study reports the results of an empirical study of the effect of firm- specific characteristics on the voluntary disclosure in the 2000/2001 annual reports of 20 commercial banks in Bangladesh. The conceptual model underlying the study is based on economic and political incentives for providing greater detail in the annual reports and accounts. Three hypotheses have been developed and also a regression has been run to investigate the relationship between dependent and independent variables. The results indicate that size and audit firm variables to be significant in determining the disclosure Thus, the study contributes to the enhancement of knowledge regarding financial reporting and disclosure practices of financial companies under the developing countries context, and provides a basis for the conduct of future research in this area

The effect of audit committee effectiveness and audit quality on corporate voluntary disclosure quality

2019 ◽  
Vol 10 (1) ◽  
pp. 17-31 ◽  
Author(s):  
Ben Kwame Agyei-Mensah
Keyword(s):  
Voluntary Disclosure ◽  
Information Disclosure ◽  
Audit Committee ◽  
Audit Quality ◽  
Audit Committees ◽  
Disclosure Quality ◽  
Content Type ◽  
Complementary Effect ◽  
Big Four

Purpose The purpose of this paper is to examine the linkages between audit committees’ (AC) effectiveness, audit quality and corporate voluntary disclosure quality (VDQ). Design/methodology/approach Empirical tests address 144 firm-year observations drawn from Ghanaian listed companies during 2013–2016. Findings The results document a substitute and complementary effect between the presence of Big Four auditor and effective AC in increasing quality voluntary disclosure. Originality/value This study is one of the few that have examined the effect of AC effectiveness and audit quality on corporate VDQ. The findings lend credence to the belief that AC effectiveness and Big Four auditors complement each other to enhance quality of voluntary information disclosure.

Impact of Adopting IFRS in Ghana

2016 ◽  
pp. 191-230
Author(s):  
Ben K. Agyei-Mensah
Keyword(s):  
Internal Control ◽  
Financial Information ◽  
Annual Reports ◽  
Disclosure Quality ◽  
Accounting Disclosure ◽  
Financial Reports ◽  
Listed Firms ◽  
Control Information ◽  
Forward Looking

This chapter reports on the impact of the adoption of IFRS in Ghana. It first traced the history of accounting standards in Ghana and the reason for the adoption of IFRS in 2007. One of the key issues that IFRS talk about is the disclosure of financial and non financial information in corporate financial reports. Hence this chapter provides evidence on the extent of disclosures, the quality of the disclosures and the determinants of the disclosures. The disclosure of financial ratios, forward-looking information and internal control information in corporate annual reports were extensively studied and findings reported in this chapter. The results of the quality of financial information disclosure mean of 76.80% (pre adoption) and 87.09% (post adoption) for the two years indicate that the quality of financial reports has improved significantly after adopting IFRSs. The findings thus confirms that the implementation of IFRSs generally reinforce accounting disclosure quality. However, the low levels of other disclosures (accounting ratio disclosure quality 6.64%, level of disclosure 60%; forward looking information 35%; internal control information 42%) by listed firms in Ghana do not support signaling theory which suggests that firms with good performance will wish to signal their quality to investors, hence are more likely to disclose their performance by disclosing more voluntary information. It is therefore important for the SEC and The Ghana Stock Exchange to do more by enforcing adherence to the corporate code of corporate governance.

Audit Committee Effectiveness, Audit Quality, and Internal Control Information Disclosures

2020 ◽  
pp. 1-22
Author(s):  
Ben Kwame Agyei-Mensah ◽  
Otuo Serebour Agyemang ◽  
Abraham Ansong
Keyword(s):  
Internal Control ◽  
Information Disclosure ◽  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Audit Committees ◽  
Independent Directors ◽  
Board Size ◽  
Control Information ◽  
Ghana Stock Exchange

This chapter examined the linkages between audit committees' effectiveness, audit quality, and internal control information disclosure. Empirical evidence on the effect of audit committee effectiveness and audit quality on internal control information disclosure is scanty. Using a 210 firm-year sample of firms listed on the Ghana Stock Exchange for the period 2013-2017, the chapter tried to fill the research gap. After controlling for board size, proportion of independent directors, and leverage, the results from univariate and multivariate analyses indicated that effective audit committee and audit firm size play complimentary and substitution roles in ensuring internal control information disclosure. Board size and proportion of independent directors were also found to influence the disclosure of quality voluntary information.

scholarly journals Islamic Corporate Governance and Internal Control Influance on Fraud in Sharia Commercial Banks

2020 ◽  
Vol 1 (1) ◽  
pp. 28
Author(s):  
Mariyam Chairunisa
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Financial Services ◽  
Commercial Banks ◽  
Audit Committee ◽  
Supervisory Board ◽  
Negative Effect ◽  
Descriptive Approach ◽  
Quantitative Descriptive ◽  
Positive Effect

This study aims to examine impact of Islamic Corporate Governance and Internal Control on Fraud on sharia Commercial Bank in Indonesia. The unit analysis of this research is Sharia Commercial Banks in Indonesia which have been registered in the Financial Services Authority (OJK) period 2012 to 2017. This research was done to 11 Islamic commercial banks by using quantitative-descriptive approach. The results of this research showed that Sharia Supervisory Board and Internal Control have negative effect and unsignificant  on Fraud. However, Audit Committee has a positive effect and significant on fraud .

scholarly journals Corporate Governance And Voluntary Disclosure In France

2013 ◽  
Vol 29 (2) ◽  
pp. 561 ◽  
Author(s):  
Carlos P. Barros ◽  
Sabri Boubaker ◽  
Amal Hamrouni
Keyword(s):  
Corporate Governance ◽  
Voluntary Disclosure ◽  
Audit Committee ◽  
Audit Quality ◽  
Annual Reports ◽  
Managerial Ownership ◽  
Board Meeting ◽  
External Audit ◽  
Listed Firms ◽  
Governance Practices

This paper investigates the effect of corporate governance practices on the extent of voluntary disclosure in France. Using a panel of 206 non-financial French listed firms during the period 20062009, we find evidence that voluntary disclosure in annual reports increases with managerial ownership, board and audit committee independence, board meeting frequency, and external audit quality. We also find that frequency of audit committee meetings and diligence of board and auditing are associated with decreased disclosure. Additional findings show that larger, more profitable, and less indebted firms have greater voluntary disclosure.

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