Corporate governance: association the spots between institutional enhancement, organisational modification and earnings quality

Purpose The purpose of this paper is to explore the link between earnings quality, Audit Committees and the Board of companies located in Jordan through the lens of enhancing corporate governance. Design/methodology/approach The real earnings management (REM) and accruals earnings management models were notably used within the panel data robust regression analysis approach; these were used against certain Audit Committee characteristics (i.e. meeting frequency, amount of Board and Committee participants [both internal and external], size) and Board of Directors. Findings The former characteristics were found to have a positive relationship with REM, while the latter yielded mixed results: while there was no significant identifiable relationship between Board outsiders and REM, there was a positive relationship identified between Board meetings, Board insiders and Board size and REM. In regard to this study’s limitations, the qualitative data gathered for the Board of Directors through the lens of corporate governance enhancement should have been documented with more detail; furthermore, the study was limited to the study of just one nation. Research limitations/implications The data is limited to only a single country. More explanation for Board of Directors need qualitative understandings into corporate governance improvement. The control variables are essentially partial in a developing market context. Practical implications The different corporate governance code and guidelines improvements have varied influence on earnings quality. As predictable, boards of directors most effect on earnings quality. Improvements have included most modification to audit committees but through them slight measured effect on earnings quality. Social implications Jordan’s corporate governance improvements expected organised corporate governance practices generally in place amongst its boards, and though invoking considerable modification to audit committees, eventually included slight modification to earnings quality. However, both improved earnings quality. Originality/value This particular research appears to be the first to consider both Audit Committee and Board of Directors characteristics in one model; indeed, in this vein, this research is also the first to explore the corporate governance enhancements that initially stemmed from there being zero code or guideline regarding its use, despite it becoming required recently. Hence, the authors can say this study has high originality.

The role of audit committees in mitigating earnings management: evidence from Jordan

PurposeThis study examines the relationship between audit committees (ACs) and earnings management (EM) in the developing country context of Jordan. In particular, it investigates whether audit committee attributes, including their size, independence, expertise and meetings, are able to restrict discretionary accruals as a proxy for EM.Design/methodology/approachThe generalized least square (GLS) regression was used to study the association between audit committee attributes and discretionary accruals, as a proxy of EM, for a sample of industrial firms listed on the Amman Stock Exchange (ASE) during the period 2012–2020. Data were obtained from the firms' annual reports.FindingsThe regression results indicate that audit committee independence is the only audit committee attribute that seems to improve the effectiveness of ACs, in that it is significantly associated with less EM, while other audit committee attributes that were tested do not show statistically significant associations.Research limitations/implicationsIn emerging markets, like Jordan, ACs may not be an efficient monitoring mechanism; therefore, it can be argued that the prediction made by the agency theory about the role of ACs in mitigating opportunistic EM activities does not necessarily apply to all contexts.Practical implicationsA better understanding of audit committee effectiveness in developing countries could help regulators in these countries assess the impact of planned corporate governance (CG) reforms and to better monitor and enhance the performance of ACs.Social implicationsIn a setting characterized by closely held companies, high power distance and low demand for high-quality CG mechanisms, this study contributes to understanding how this business system operates, and how improving CG mechanisms could be successful in such cultures.Originality/valueThis study investigates the under-researched relationship between audit committee characteristics and EM in developing countries. In so doing, it aims to provide new insights into this relationship within the developing context case of Jordan, including if and how the institutional setting influences this relationship.

Mechanism Effect Corporate Governance and Characteristics Company on Disclosure Intellectual Capital on Registered Pharmaceutical Companies on the Indonesia Stock Exchange

The purpose of this study was to analyze the effect of the mechanism corporate governance and company characteristics to disclosure intellectual capital in pharmaceutical companies listed on the Indonesia Stock Exchange in 2015-2020. The population of this study were pharmaceutical companies listed on the Indonesia Stock Exchange in 2015-2020. The sample in this study was 6 pharmaceutical companies which were determined through purposive sampling. This study analyzes the company's annual report using the method content analysis. Data analysis was carried out by classical assumption test, hypothesis testing and multiple regression analysis methods. The results of this study indicate that the size of the board of commissioners, the number of meetings of the board of commissioners, and profitability have an effect partially or simultaneously on disclosure. intellectual capital. Meanwhile, independent commissioners, audit committees, number of audit committee meetings, company size, and leverage has no partial or simultaneous effect on disclosure intellectual capital.

The Analysis of Factors Affecting the Amount of Audit Fee with Type of Public Accountant Office as a Moderating Variable in Manufacturing Companies Listed on the IDX for the 2013-2019 Period

This study analyzes the factors influencing the number of audit fees in manufacturing companies listed on the Indonesia Stock Exchange in 2013 – 2019. The number of audit fees depends on several factors that influence it. The Indonesian Institute of Certified Public Accountants has determined the minimum standard of audit fees charged to auditee companies but does not include a substantial total cost and tends to fluctuate and vary. This study uses the audit committee, audit report lag, and firm size as independent variables, the type of public accounting firm as the moderating variable, and audit fee as the dependent variable. This study uses causal associative as the research design. The data was collected by collecting data on the company's financial statements from 2013 to 2019. The study population was 176 manufacturing companies whose samples were taken using the purposive sampling method. The number of research samples was 20, with 140 observations. The data analysis technique uses Studio R's panel analysis regression model as the test tool. The results showed that the Audit Committee, audit report lag, and firm size each had a significant positive effect on the audit fee's value and jointly had a significant impact on the audit fee. The type of public accountant office is not a moderating variable. Keywords: audit fee, audit committee, audit report lag, firm size, public accountant office.

The Effect Of Audit Rotation, Audit Tenure And Auditor Reputation On Audit Quality With Profitability As Moderating Variable

This study aims to determine the effect of Audit Tenure, Audit Committee and Auditor Reputation on Audit Quality with Profitability as a Moderation variable. The sample used is a manufacturing company listed on the Indonesia Stock Exchange (BEI) 2015-2019. In determining the sample using purposive sampling method.The data used are secondary data and the method of analysis used is logistic regression analysis.The results showed that partially Audit Rotation has a positive and significant effect on Audit Quality with a significant value of 0,012. Partially the Audit Tenure has a positive and insignificant effect on Audit Quality with a significant value of 0,346. Partially Auditor Reputation has a positive and significant effect on Audit Quality with a significant value of 0,028. Partially Audit Rotation has a positive and significant effect on Audit Quality with Profitability as a moderating variable with a insignificant value of 0,655. Partially the Audit Tenure has a positive and significant effect on Audit Quality with Profitability as a moderating variable with a insignificant value of 0,720. Partially, Auditor Reputation has a positive and significant effect on Audit Quality with Profitability as a moderating variable with a significant value of 0,000. Simultaneously the Audit Tenure, Audit Committee and Auditor Reputation have a positive and significant effect on Audit Quality with profitability as a moderating variable with a significant value of 0,003.

Indikator-Indikator yang Mempengaruhi Tingkat Konservatisme Akuntansi

Accounting conservatism is a precautionary principle applied by the company, where revenue is recognized more slowly while expenses are recognized more quickly, so net income will appear lower. The purpose of this research is to examine and analyze the effect of the size of the board of commissioners, leverage, frequency of audit committee meetings, financial distress, and firm size on the level of accounting conservatism in manufacturing companies listed on the Indonesia Stock Exchange for the 2017-2020 period. This study uses a population of all manufacturing companies that have been listed on the Indonesia Stock Exchange (IDX) in the last four periods, namely 2017-2020, obtained a population of 677 companies. The sampling method used in this study is a purposive sampling technique with several selected criteria so as to obtain a sample of 369 companies. This study uses secondary data in the form of numbers that are processed into a statistical measurement scale, so it is called secondary data. Data collection techniques using documentation techniques. The data analysis technique used is multiple linear regression analysis. The results of this study indicate that the size of the board of commissioners (UDK) and the frequency of audit committee meetings (FPKA) have no effect on the level of accounting conservatism. Meanwhile, financial distress (Distress) and firm size (SIZE) have a significant negative effect on the level of accounting conservatism. Different direction with leverage (DAR) which has a significant effect in a positive direction on the level of accounting conservatism. Keywords: financial distress; frequency of audit committee meetings; conservatism accountancy; leverage; the size of the board of commissioners; company size

Audit committee chairman characteristics and corporate performance: Empirical evidence from Saudi Arabia

The purpose of this paper is to investigate the impact of corporate governance (CG) characteristics, specifically audit committee chairman (ACC) characteristics. (tenure, expertise, and directorship) on corporate performance (CP). The study was executed on 44 firms, which were registered under the finance sector at Bursa Saudi Arabia. In terms of its scope, the study stretched over quite a long period of time and observed a considerable number of firms; more specifically, it lasted from 2015 to 2019, and observed 195 firms. The relationship between the characteristics of audit committee (AC) directors and CP has been studied extensively in the past. Nevertheless, few studies have investigated the ACC's characteristics. To the best of the researcher's knowledge, no study has yet studied the effect of CG's characteristics, specifically, the ACC characteristics on CP. The study’s conclusions indicate that corporate governance (CG) characteristics, specifically audit committee chairman (ACC) characteristics (tenure and expertise) are positively related to the performance of finance companies. However, the audit committee chairman’s multiple directorships, on the other hand, has no relationship with corporate performance. Review of literature on the audit committee chairman characteristics used in this study is offered, the practical implications and the recommendations for future research works is also emphasized.

Determinan Perencanaan Pajak Perusahaan Pertambangan di Indonesia

This research aims to determine the effect of corporate governance as measured by institutional ownership, the proportion of independent commissioners, audit committee, and board of director also solvability, profitability, company size, growth opportunity, and capital intensity ratio on tax planning. The population in this research were all mining companies listed on Indonesia stock exchange for the 2015-2018 with the sampling technique used was purposive sampling. This type of research was causal associative, with data analysis method, namely confirmatory factor analysis and then continued with multiple regression analysis. The result of the factor test indicate that the audit committee is not a determinant of tax planning. Based on the results of regression analysis shows that simultaneously, institutional ownership, the proportion of independent commissioners, board of directors, solvency, profitability, company size, growth opportunity, and capital intensity ratio have an effect on tax planning. While partially, the results of the study indicate that institutional ownership, profitability, growth opportunity, and capital intensity ratio can be determinants that affect corporate tax planning. Meanwhile, the proportion of independent commissioners, board of directors, solvency, and company size partially not influence the company to do the tax planning. From results of this research, the government is expected will pay more attention to the grey area that can be used by companies as a gap to reduce tax payments which results in reduced state revenues.