The paper aims to examine the effect of good corporate governance practices on corporate transparency and performance of Malaysian listed companies.
Purpose This paper aims to examine the association between new audit committee characteristics – attendance of audit committee members at meetings and changes of members through the demission or appointment of members of the audit committee during the year – and earnings management. Its objective is to contribute new evidence that extends studies on audit committee characteristics in reducing earnings management. Design/methodology/approach The sample comprises 370 observations obtained from the annual reports of 74 companies listed on the Muscat Securities Market for the years 2008-2012. The panel data are analysed using a fixed effects model to validate the hypotheses and model. Findings This study finds a negative association between earnings management and members’ attendance at the audit committee meetings. Additionally, there is a positive significant relationship between earnings management and changes to members through demission or appointment. Originality/value This study broadens the scope of audit committee characteristics by providing empirical evidence of the relationship between new audit committee characteristics and earnings management and may assist policymakers and regulators in determining ways to enhance audit committee characteristics and improve financial reporting quality.
This study examines the influence of corporate governance on the extent of corporate social responsibility and environmental reporting (CSER) in Libyan companies according to legitimacy theory, using quantitative and qualitative methods. The variables used in this study are government ownership, chief executive officer duality, board independence, and board size. The study was conducted in Libya because this country has a unique political and economic system. Moreover, the regime in Libya has influenced the nature of CSER, as has Islamic factor. The quantitative data consist of 162 annual reports derived from 42 Libyan companies. The qualitative data are obtained from 31 financial and information managers from the largest Libyan companies, who expressed their perceptions regarding the influence of the study variables on the extent of CSER. Results confirm that corporate governance generally has no influence on the extent of CSER in Libyan companies, with the exception of board size.
This research focuses on the importance of ownership structure as a determinant of risk disclosure. It is expected to contribute to the literature particularly in the Malaysian context, where risk disclosure practice is in the infancy stage. This study uses multiple regressions in assessing the variability of the extent of risk disclosure. The overall results confirm that highly concentrated ownership would lead to high agency problem, which then leads to less disclosure. This implies that, to promote greater transparency in countries where many of the large listed companies are family-owned, more stringent laws that mandates adequate risk disclosure is clearly warranted. This would ensure that the needs of all stakeholders are properly met.
The results show that, it is proven that the variable liquidity and interest rates have a negative effect on financial distress. Meanwhile, the variables of Profitability, Leverage and Company Size have a positive effect on financial distress. While the Economic Stimulus variable is known to be the relationship between all variables of Liquidity, Profitability, Leverage, Company Size and Interest Rate on variables to Financial Distress. This means that company leaders must take into account liquidity, profitability, leverage, company size and interest rates to avoid financial distress.
This study examines whether Shariah-compliant companies practice earnings management by investigating the relationship among the risk of financial distress, leverage, and free cash flow in discretionary accruals, which function as a substitute for earnings management. This empirical research is conducted on a sample of Malaysian Shariah-compliant companies from all industries in Bursa Malaysia from 2012 to 2014. Results show that Shariah-compliant companies are highly influenced by the risk of financial distress, leverage, and free cash flow. This study argues that working as either Shariah-compliant or non-Shariah-compliant does not affect the level of earnings management through financial distress, high leverage, and free cash flow by managers. Results should be of interest to stakeholders, shareholders, and regulatory bodies (i.e., the Shariah Advisory Council and the Securities Commission) that oversee the accountability of corporate financial reporting to prevent earnings management in Shariah-compliant companies. Findings can also aid relevant authorities (i.e., the Shariah Advisory Council and the Security Commission) in Malaysia in overcoming or reducing problems related to earnings management. This study is one of the most significant works in Malaysia in terms of sample size and methodology. It argues that the three elements of earnings management (i.e., financial distress, high leverage, and free cash flow) influence better disclosure of reported earnings.
Risk is the main issues, which is cause of uncertainty in any organisation. It's become a top priority for the international business community and the companies began focus on identify and manage risk before it affect the business. Malaysia has established and improves the corporate governance code, which is Malaysia Code on Corporate Governance 2012 and one of the principle discuss is to strengthen the risk management among the companies listed on Bursa Malaysia. There is a limited study on risk management effectiveness of the companies in Malaysia especially in developing the index for each sectors or industries. The main objective of this study is to develop the risk management effectiveness index for companies listed on the Main Board of the Bursa Malaysia in order to measure the commitment of companies towards risk management. An assessment questionnaire has been employed in this study to measure the risk management disclosure in annual report. The overall findings of the risk management effectiveness index revealed that among seven sectors of companies, trading sectors get high scores on five items studied.
PurposeThe main aim of the present study is to assess the moderating effect of joint audit (JA) on the relationship between audit committee effectiveness (ACEFF) and audit quality (AQ) in Egypt.Design/methodology/approachThe sample included 61 non-financial corporations listed on the Egyptian Exchange from 2016 through 2020. The results are estimated using panel data analysis with fixed-effect models.FindingsThe findings exhibit that audit committee (AC) independence, ACEFF; and audit firm size negatively affect AQ. Conversely, the influence of AC meetings on AQ is positive and significant. The findings also reveal that JA moderates the relation between the ACEFF and AQ.Research limitations/implicationsThe study offers theoretical contributions to corporate governance mechanisms, JA; and AQ by using data from listed firms in Egypt. The study is the first one that examines the moderating role of JA on ACEFF and AQ.Practical implicationsThe study has practical implications for investors, board members, practitioners, academicians; and policymakers. Moreover, the study contributes using a composite measure for the ACEFF score.Originality/valueThe findings, supported by agency, resource dependence; and signaling theories, contribute to a better understanding of the relationship between ACEFF, AQ; and JA. The evidence about JA is still unknown in developing countries. Further, revisiting AQ with different measures, particularly accounting conservatism, has not been a subject of prior studies.
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