48 article(s) in Corporate Governance and Sustainability Review

The Impact Of Audit Committee On Real Earnings Management: Evidence From Netherlands

this paper aims to examine the effect of the characteristics of an audit committee on real earnings management in the dutch context. our sample is composed of 80 non-financial companies listed on the amsterdam stock exchange during the period between 2010 and 2017. four proxies are used to measure audit committee characteristics, namely, audit committee independence, financial expertise, gender diversity, and audit committee meetings. to test our hypotheses, we use a regression model to identify the influence of a set of audit committee characteristics on real earnings management after controlling for firm audit committee size, leverage, size, loss, growth and board size. our analyses provide evidence that audit committee independence and gender diversity constrain real earnings management. our findings also suggest that audit committee financial expertise reduces to some extent the likelihood of engaging in real earnings management. to the best of our knowledge, the dutch context is not yet explored especially following the issue of the long-awaited new dutch corporate governance code in 2016 which has been updated for a long period in 2008. therefore, corporate governance is a relevant topic in the netherlands. this study contributes geographically to the audit committee and earnings management literature that examines another possible method, specifically, real earnings management Show More ... ... Show Less

  • Audit Committee
  • Real Earnings Management
  • Corporate Governance
  • Gender Diversity
An Operational Approach To Financial Stability: On The Beneficial Role Of Regulatory Governance

the reviews have shown that regulatory governance increases the economic growth of the country that further improves the financial stability. weak governance promotes a weak financial sector. it is established that there are several crises took place in ancient times because of failed policy (greco, ishizaka, tasiou, & torrisi, 2019; kuc czarnecka, lo piano, & saltelli, 2020). the purpose of the research is to find out more about how weak governance can damage the economy of nations, and that is how it leads to financial instability. besides, how good governance leads to economic stability can also be understood. the research problem presented in terms of the objective of the research is to find out the association between financial stability and regulatory governance for the selected nations under study. this is done by taking a sample of fifteen nations of the world. by taking selective indicators for regulatory governance and financial stability and applying the causality test, the association is checked. the results indicate a less significant association between regulatory governance and financial stability for nations under study. the results are relevant in continuously expanding global financial markets wherein emphasis is strong regulations Show More ... ... Show Less

  • Financial Stability
  • Regulatory Governance
  • Economic Growth
  • The World
Non-Performing Assets In India: A Critical Analysis Of Public And Private Sector Banks

the paper identifies and analyzes the causes that affect non performing assets (npas), hinder its effective observance, and recommends appropriate measures to ensure their effective monitoring and control. the banks selected for this research work are having higher npas and are top banks in their sector. as per the global financial stability report of international monetary fund (imf, 2009), identifying and dealing with distressed assets, and recapitalizing weak but viable institutions and resolving failed institutions are stated as the two of the three important priorities which directly relate to npas. this research work finds the reasons for non-performing loans by considering a set of 50 variables and provides the necessary measures. statistical tool spss was used to run the factor analysis test. sectoral disparities in the npa ratio to advances in public and private sector banks were the main source of motivation to analyze and compare factors affecting non-performing assets (npas) of public and private sector banks in india. some of the reasons for npa are lack of frequent interaction or follow-up with borrowers, manipulation of income or financial statement by borrowers, industrial problem and death of earning member of the family Show More ... ... Show Less

  • Public And Private Sector
  • Research Work
  • The Family
Forecasting And Asymmetric Volatility Modeling Of Sustainability Indexes In India

sustainability is the new approach of corporations of the world over which is catching a lot of attention due to its divergence from the short-term approach to the long-term horizon. sustainability indexes, that represent a set of companies for being socially responsible in terms of its corporate approach, need to be assessed in terms of forecasting the return as well as volatility of these returns. autoregressive nature of three sustainability indexes, viz, greenex, carbonex and esg index has been captured using autoregressive integrated moving averages method. the residuals of the model are subjected to generalized autoregressive conditional heteroscedasticity modeling to address volatility clustering. arima results of three indices specify ar (1) for forecasting carbonex is ar (1), ma (3) for forecasting esg and ar (3) ma (3) for forecasting greenex. variances are changing as well as are a function of its past behavior, as shown by garch (1,1) process in the case of carbonex and greenex. whereas in the case of esg garch (1,1) does not explain such variance in residuals which could possibly be due to the presence of other exogenous factors in the time series. these results find place in the area of asset pricing and risk management of sustainability indexes in india. the research is based on the works of joshi, pandey, and ross (2017), and it contributes to findings of makridakis, wheelwright, and hyndman (1998 Show More ... ... Show Less

  • Time Series
  • Risk Management
  • Asymmetric Volatility
  • Volatility Modeling
  • The World
Impact Of Firm’S Specific Factors On Audit Fee Of Quoted Consumer Goods Firms

greater pricing presume on audit service has been put by the regulations of the auditing and accounting practices for the disclosure of audit fees, since audit fee is directly related to audit quality. however, the audit fees perceived by the client is often different from the amount charged by the auditors. hence, this study investigated the impact of firm-specific characteristics on audit fees of quoted consumer goods firms in nigeria using a purposive sampling technique. secondary data were obtained from annual reports of the companies for the period from 2009-2016. the empirical result from breusch-pagan lagrange multiplier test (bp-lm) produced a chi-square value of 13.94 with p-value of 0.0001 indicating that pooled ordinary least squares (ols) will not be appropriate for the study. the hausman test showed a chi-square of 23.55 with a p-value of 0.001 indicating that the null hypothesis is strongly rejected. thus, the only estimate from the fixed effect model was interpreted to explain the relationship between firm-specific characteristics and audit fees of quoted consumer goods firms in nigeria. the result revealed that auditee size, auditee risk, auditee profitability and ifrs adoption are the firm specific characteristics that impact on audit fees with only auditee size and ifrs adoption being positively related to audit fees while the other factors are negatively related to audit fees. based on this finding, this study concluded that the firm’s specific factors are the major drivers of audit fees in nigeria consumer goods firms. this study recommends among others that companies should implement corporate governance principles that address issues relating to board independence and committee sizes to guide activities in the consumer goods sector since profitability behave negatively with audit fees Show More ... ... Show Less

  • Audit Fees
  • Consumer Goods
  • P Value
  • Chi Square
  • Ifrs Adoption
Corporate Board And CSR Reporting: Before And After Analysis Of JCGC 2009

this study investigates the influence of board size, the presence of an audit committee on the board, and ceo duality on corporate social responsibility (csr) reporting in jordan. the longitudinal data (panel data) analysis estimation techniques were used for the period of 2006 to 2015. content analysis was employed to assess the level of csr reporting of a different area of disclosure in the annual reports. multiple regression analysis was used to investigate the association between governance factors and the level of csr reporting (habbash, 2016; ahmad, rashid, & gow, 2017b). the findings reveal that board size and the presence of an audit committee on the board are significantly positive on the level of csr reporting. these factors play a significant role in enhancing compliance with corporate governance best practices. the role of ceo duality on the board has an insignificant relationship with the level of csr reporting. these results suggest significant implications for companies and regulators to continue to improve corporate governance best practices in the companies and develop greater awareness of companies csr reporting. the study contributes to the governance and csr reporting literature in the middle east and developing countries using the legitimacy theory approach Show More ... ... Show Less

  • Csr Reporting
  • Corporate Governance
  • Best Practices
  • Audit Committee
  • Board Size
Editorial: Researching The Relations Between Governance Characteristics And Sustainability

this issue includes the papers devoted to very topical issues ranging from the influence of corporate governance on social and environmental responsibility to the impact of audit committee characteristics on earning management; from the relationship between quality of governance and quality of assets to the linkage between regulatory governance and financial stability of nations. these are issues debated in the theoretical and empirical studies of recent years that the authors of the articles in this issue examine with reference to contexts not yet explored and/or giving rise to a number of interesting and original conclusions Show More ... ... Show Less

  • Corporate Governance
  • Earning Management
  • Quality Of Governance
  • The Impact
Could The Altman Z-Score Model Detect The Financial Distress In Ghana? Multivariate Discriminant Analysis

the purpose of this paper is to assess the effectiveness of the altman z-score model to discriminate between financially distressed and non financially distressed manufacturing firms listed on the ghana stock exchange. eleven firms consisting of two financially distressed and nine non-financially distressed manufacturing firms were analysed. independent descriptive statistics, independent sample t-test, and multivariate discriminant analysis were the analytical tools used to analyse the hypotheses of this study. the study revealed that working capital/total assets and sales/total assets were the major discriminators of financially distressed firms on the ghana stock exchange. multivariate discriminant analysis revealed an accuracy rate of 79.9% to detect financially distressed firms in ghana Show More ... ... Show Less

  • Financially Distressed
  • Multivariate Discriminant Analysis
  • Manufacturing Firms
The Effect Of Human Capital On Organizational Performance: The Case Of Sustainability Issues In An E-Commerce Firm

this paper aims to discuss how developing human capital can have a direct positive effect on operational performance. the case study method is used to address the sustainability issues a lebanon-based retail e-commerce company is facing. we utilize the socio-economic qualimetrics methodology to discuss the corporate change from within the enterprise at all levels and with the contribution of all the participants in the firm. the focus of the case study is on qualitative, quantitative, and financial aspects through competitiveness enhancement and operational effectiveness metrics. the findings of this intervention research contribute to the literature insofar as enhancing the social capital of a retail e-commerce organization positively impacts its performance Show More ... ... Show Less

  • Human Capital
  • Case Study
  • Social Capital
  • Operational Performance
  • Positive Effect
Editorial Note
  • Editorial Note
Editorial Note
  • Editorial Note