scholarly journals Impact of Corporate Governance Mechanism in Mitigating Creative Accounting Practice of Listed Conglomerate Companies in Nigeria

2021 ◽  
pp. 39-50
Author(s):  
Abdulrahman Bala Sani ◽  
Ruth Oluwayemisi Owoade
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Board Independence ◽  
Managerial Ownership ◽  
Governance Mechanism ◽  
Board Size ◽  
Accounting Practice ◽  
Creative Accounting ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanism

This study examined the impact of corporate governance mechanism in mitigating creative accounting practice of listed conglomerate companies in Nigeria. The study used Secondary data obtained from the company’s annual reports and accounts for the period 2013 to 2020. The population of the study includes six conglomerate companies listed on the Nigeria Stock Exchange and the entire population was used for the study. The dependent variable creative accounting was measured using discretionary accruals as estimated by modified Jones model. The independent variable corporate governance mechanism was proxied by audit committee, board size, board independence, managerial ownership. Multiple regression technique was employed for the panel data analysis using Stata version 13 statistical tools. Findings of the study revealed that audit committee has negative significant impact on creative accounting practice. Managerial ownership has significant positive impact on creative accounting practice. Board size and board independence has no significant impact on creative accounting practice of listed conglomerate companies in Nigeria. The study concludes that good corporate governance have impact on creative accounting practice. Based on these findings, the study recommends that companies are to effectively apply good corporate governance mechanism. They should have an independent audit committee, so as to minimize creative accounting practice.

scholarly journals The effect of good corporate governance mechanism and leverage on the level of accounting conservatism

2017 ◽  
Vol 6 (1) ◽  
pp. 67
Author(s):  
Habiba Habiba
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Accounting Conservatism ◽  
Managerial Ownership ◽  
Governance Mechanism ◽  
Manufacturing Companies ◽  
Comprehensive Income ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanism

Accounting conservatism is a condition where a company acknowledges the debts and costs more quickly, but on the other hand, the company acknowledges the income and assets more slowly. Some factors that can affect the accounting conservatism are stan-dards changes, corporate governance, and so forth. The purpose of this study is to analyze the effect occurring on the variable of accounting conservatism when using comprehensive income and income for the current year in manufacturing companies listed on the Indonesian Stock Exchange in 2012 and 2013. The variables studied are institutional ownership, managerial ownership, the existence of audit committee, the number of audit committee meetings, and leverage. The statistical method used in this study is multiple regression analysis. The results of this study indicate that institu-tional ownership, managerial ownership, and the number of audit committee meetings do not have significant effect on accounting conservatism when using comprehensive income and income for the current year, but the variables of the existence of audit committee and leverage have significant effect on accounting conservatism when using comprehensive income and income for current the year.

scholarly journals PENGARUH MEKANISME GOOD CORPORATE GOVERNANCE TERHADAP MANAJEMEN LABA

2017 ◽  
Vol 7 (2) ◽  
pp. 1067 ◽  
Author(s):  
Yusuf Mangkusuryo ◽  
Ahmad Waluya Jati
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Managerial Ownership ◽  
Governance Mechanism ◽  
Test Results ◽  
Institutional Leadership ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanism ◽  
Independent Audit

This study aimed to determine the effect of Good Corporate Governance mechanism towardearnings management that is proxied with discretionary accruals (DTA). The GCG mechanismis proxied with managerial ownership (KM), institutional leadership (KI), independent board ofcommissioner (DKI) and independent audit committee (KAI). The sample used in this studywere 11 companies registered in CGPI for three years starting from 2013 to 2015.To knowwhether the above GCG variables have an effect on earnings management, multiple linearregression test using SPSS 2.1 program. The test results show that only managerial ownershipvariables has significantly influence to earnings management. While other variables such asinstitutional ownership (KI), independent board of commissioner (DKI), and independent auditcommittee (KAI) have no significant effect to earnings management.Keyword: Good Corporate Governance, managerial ownership, institusional leadership, independent board of commisioner, independent audit committee, earning management.

Corporate Governance Mechanism on Financial Performance (Evidence from the Indonesia’s Listed State-owned Enterprises)

2021 ◽  
Vol 1 (1) ◽  
pp. 24-34
Author(s):  
Anak Agung Kompiyang Ratih Maldini ◽  
Pananda Pasaribu ◽  
Christian Haposan Pangaribuan
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Positive Impact ◽  
Stock Exchange ◽  
Governance Structure ◽  
Board Independence ◽  
Governance Mechanism ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanism ◽  
The Impact

Objective – This study aims to find the impact of privatization, which proxied by good corporate governance toward the financial performance of SOEs in Indonesia. Methodology – This study used 16 privatized SOEs that are listed in Indonesia Stock Exchange and also 16 privatized non-SOEs as the comparison. The data is collected from the year 2014 to 2018 and analyzed by using multiple regression panel data. Findings – This study found that director size and board independence have a positive impact toward SOEs financial performance. The director size and board independences have a positive significant impact toward the SOEs financial performance while the privatized non-SOEs is not significantly affected Novelty – This study examines proper governance structure in SOEs and non-SOEs, thus providing new insights about good corporate governance regulation in the Indonesian context.

scholarly journals Pengaruh Mekanisme Corporate Governance Terhadap Kinerja Keuangan Badan Usaha

2010 ◽  
Vol 3 (2) ◽  
Author(s):  
Filia Puspitasari ◽  
Endang Ernawati
Keyword(s):  
Corporate Governance ◽  
Firm Size ◽  
Foreign Debt ◽  
Ownership Concentration ◽  
Managerial Ownership ◽  
Governance Mechanism ◽  
Outside Directors ◽  
Board Size ◽  
Corporate Governance Mechanism ◽  
The Impact

Nowdays, most researches in corporate governance field are conducted by researchers based on rising of many firms to become public corporation. According to this situation, they have to separate their functions on ownership and control of the firm. As result, it will arise agency conflict between owners and managers. The corporation enable solve the problem by apply the corporate governance mechanism optimally. This research is a replication research is conducted by Sanda et al (2005). It’s explained the specific study about the impact of corporate governance mechanism include managerial ownership, board size, outside directors, ownership concentration, and debt toward financial performance that measured by ROA, ROE, PER, and TOBINS’Q. The samples of this research are all corporations which listed at Bursa Efek Indonesia (BEI) by all sectors that delivered financial statement on time by regulation. The period of time in this research determined on 2005-2007. The model is extended by quadratic of managerial ownership, quadratic of board size, quadratic of ownership concentration, CEO foreign and firm size as control variables, and sectoral dummy. The result of this research explained that corporate governance mechanism simultaneously influence to ROA and ROE significantly. On partially, ROA is influenced by CEO foreign, debt, and firm size significantly. And ROE is inluenced by CEO foreign, firm size, and sector of basic industry significantly.

scholarly journals Pengaruh Mekanisme Corporate Governance Terhadap Ketepatan Waktu Pelaporan Keuangan (Studi Empiris Pada Perusahaan Perbankan Milik Pemerintah Pusat)

2018 ◽  
Vol 19 (1) ◽  
pp. 1
Author(s):  
Muhammad Rivandi ◽  
Maria Magdalena Gea
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Audit Committee ◽  
Sampling Method ◽  
Stock Exchange ◽  
Central Banking ◽  
Managerial Ownership ◽  
Governance Mechanism ◽  
Multiple Regression Models ◽  
Corporate Governance Mechanism

This study aims to examine the effect of corporate governance mechanism on the timeliness of financial reporting. The sample of this study are four central banking companies listed in Indonesia Stock Exchange (IDX) selected based on purposive sampling method. The method of data analysis used in this study is multiple regression models. Based on the hypotheses testing result, that the managerial ownership and audit committee have a positive and significant effect on the timeliness of financial reporting, while independent commissioner has no effect on the timeliness of financial reporting

scholarly journals The Effect of Good Corporate Governance Mechanism On The Financial Performance of Banking Companies Listed In Stock Exchange Indonesia 2012-2016

2019 ◽  
Vol 3 (2) ◽  
pp. 273-287
Author(s):  
Desi Pipian Pujakusum
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Governance Mechanism ◽  
Return On Assets ◽  
Good Corporate Governance ◽  
The Board Of Directors ◽  
Corporate Governance Mechanism

This study aims to examine the effect of good corporate governance mechanism on the financial performance of banking companies listed on the Indonesian Stock Exchange 2012-2016 period. The corporate governance mechanism is proxied by the size of the board of directors, the size of the board of commissioners, audit committee size, the board of director's education, and the board of commissioner’s education. The company's financial performance is proxied by return on assets (ROA). Samples were taken by using purposive sampling. The total number of samples used in this study amounted to 180 research samples. This study was tested with SPSS 20 program. Data analysis technique used in this research is simple regression analysis.  The results showed that the size of the board of directors, the size of the board of commissioners, and audit comitee size have a significant effect on return on assets. These three factors have a significant effect on return on assets, while the board of commissioners education and the board of director's education have no significant effect on return on assets.

Optimizing good Corporate Governance Mechanism to Improve Performance: Case in Indonesia’s Manufacturing Companies

2020 ◽  
pp. 097215092091987
Author(s):  
Ilham Hidayah Napitupulu ◽  
Anggiat Situngkir ◽  
Ferry Hendro Basuki ◽  
Widyo Nugroho
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Financial Reporting ◽  
Audit Committee ◽  
Audit Committees ◽  
Managerial Ownership ◽  
Company Performance ◽  
Governance Mechanism ◽  
Manufacturing Companies ◽  
Good Corporate Governance

The application of good corporate governance (GCG) aims to improve company performance. In implementing GCG, a mechanism is needed, namely a procedure and a clear relationship between the decision-maker and the party overseeing the decision. The mechanism of GCG can be measured by the numbers of board of directors, independent board of commissioners, audit committees, and also managerial ownership. This research is conducted at manufacturing companies listed on the Indonesia Stock Exchange, with a total sample of 52 companies determined by purposive sampling technique. Data are analyzed by using multiple regression analysis with statistical package for the social sciences (SPSS) tools. The findings show that the board of directors and independent commissioners have an influence on company performance, while audit committees and managerial ownership do not affect the company’s performance. The company’s performance is improved by the existence of an independent board of commissioners that provides guidance and direction as well as supervision to the company management. Meanwhile, the audit committee has no influence, because the audit committee is only responsible for assisting the board of commissioners in monitoring the financial reporting process by the management to improve the credibility of financial statements, and managerial ownership does not affect the company’s performance because the number of management shares is quite low, because of which the management cannot influence the decisions taken at the general meeting of shareholders to improve the company’s financial performance. Thus, if the GCG mechanism goes well, then the company’s performance will increase.

scholarly journals THE EFFECT OF INTERNAL GOVERNANCE ON CORPORATE FINANCIAL CRIME OF COMPANIES IN MALAYSIA

2020 ◽  
Vol 2 (2) ◽  
pp. 53-64
Author(s):  
Wan Nailah Abdullah ◽  
Roshima Said ◽  
Kiymet Caliyurt
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Financial Crime ◽  
Managerial Ownership ◽  
Governance Mechanism ◽  
Internal Governance ◽  
Web Based ◽  
Corporate Governance Mechanism ◽  
Risk Committee ◽  
Risk Management Committee

This empirical study proposes to examine one of the main areas in corporate governance i.e., the internal governance factors and their relationship with corporate financial crime and to find out whether their effectiveness as a corporate governance mechanism is still relevant in the prevention of corporate financial crime. The internal governance factors tested in the study are audit diligence, audit size, employee shares option scheme, managerial ownership and stand-alone risk management committee. The research was carried out by using a web-based data collection for corporate financial crime cases. The findings indicate a significant relationship between the existences of a stand-alone risk committee with corporate financial crime incidences. The result of the study serves as an empirical indicator for a firm’s consideration in deciding on the implementation of a stand-alone risk committee from its audit committee. Both the descriptive and correlation analyses produced by this paper provide new insights into the extent of corporate financial crime, as well as the empirical evidence of the effectiveness of having a stand-alone risk committee.

scholarly journals KONTRIBUSI GOOD CORPORATE GOVERNANCE UNTUK MENGURANGI TERJADINYA AUDIT DELAY

2019 ◽  
Vol 4 (2) ◽  
pp. 78-88
Author(s):  
Gustita Arnawati Putri
Keyword(s):  
Corporate Governance ◽  
Regression Analysis ◽  
Audit Committee ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Analysis Tool ◽  
Governance Mechanism ◽  
Good Corporate Governance ◽  
Research Findings ◽  
Corporate Governance Mechanism

The delay of audit report being able to mislead stakeholders, especially investors in taking decision is the main issue of the research. The research objective is to prove empirically contribution of good corporate governance mechanism to decrease the audit delay. Banking companies listed in Indonesia stock exchange within 2011-2013 are the samples of the research. Multiple regression analysis, preceded by classical assumption test is used as analysis tool in the research. The research findings partially showed that managerial and institutional ownership did not affect to audit delay, while proportion of independent commissionairy boards significantly affected to audit delay. Nevertheless, simultaneously managerial and institutional ownership as well as proportion of independent commissionary boards and the number of audit committee significantly affected to audit delay.

scholarly journals PENGARUH PENERAPAN GOOD CORPORATE GOVERNANCE TERHADAP NILAI PERUSAHAAN PADA PERUSAHAAN KELUARGA YANG TERDAFTAR DI BEI PERIODE TAHUN 2013-2017

2019 ◽  
Vol 27 (2) ◽  
pp. 109-118
Author(s):  
Intan Ariningtyas Junaidi ◽  
Nurfauziah Nurfauziah
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Sampling Method ◽  
Stock Exchange ◽  
Positive Influence ◽  
Governance Mechanism ◽  
Book Value ◽  
Company Value ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanism

The purpose of this study was to determine the effect of the application of good corporate governance to the value of the company in family businesses. In this study the sample used was 50 family companies listed on the Indonesia Stock Exchange in 2013-2017. This sample uses a purposive sampling method based on predetermined criteria. The corporate governance mechanism used is an independent board of commissioners and an audit committee. The company value is calculated using the book value (PBV). In testing hypotheses, the method used is multiple regression analysis. The results of this study indicate that if the independent board of commissioners has no influence on the value of the company measured using the book value of prices and the audit committee has a positive influence on the value of the company measured using the book value of prices.

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