Purpose This study aims to investigate the relationship between corporate governance risk and agency costs across different countries. Design/methodology/approach Corporate governance risk indicators were obtained from the Institutional Shareholder Services Europe (S.A.) for 4,135 firms across 27 countries. Agency costs and other control variables were derived from companies’ annual financial reports using the DataStream database. Ordinary least squares multiple regression analysis model was used to test the study hypothesis. Findings Agency costs have a significant negative impact on corporate governance risk across countries. The extent of corporate governance mechanisms used, however, varies across geographic regions and industry types. The relationship between corporate governance risk and agency costs is more obvious in the non-financial than financial sector. These results were robust after several statistical checks. Practical implications The findings will help stakeholders, including corporate management, regulators and investors to improve corporate governance mechanisms and capital allocation decisions across countries. Originality/value Evidence is provided on the role of agency costs in corporate governance risk across geographic regions for financial and non-financial companies. The paper also overcomes common problems in corporate governance research such as construct validity, limited data and endogeneity.

Purpose The purpose of this paper is to investigate the relationship between related party transactions disclosure (RPTD) and firm valuation in the United Arab Emirates (UAE), an emerging market. Design/methodology/approach Data on study variables were obtained manually from the published financial statements of all listed companies in the stock market during the period 2008-2012. Panel regression analysis models with fixed and random effects were used to ensure reliability of results. Several robustness checks were undertaken on the study outcomes. Findings The empirical results show that there is a significant negative relationship between RPTD and firm valuation in the UAE. RPTDs for subsidiaries and associates have the most damaging impact on firm valuation. Other control variables such as corporate governance disclosure (CGD), debt to equity, asset tangibility and sales growth show significant impact on firm valuation. Research limitations/implications The potential difference in the understanding of what constitutes “related party” across companies may affect the extent of related party disclosure across companies. Furthermore, some variables are not controlled for such as ownership structure and cultural values. Practical implications This paper provides useful practical guidelines for regulatory agencies, corporate managers and other stakeholders for improving the financial reporting system. Originality/value RPTD was measured according to the International Financial Reporting Standards (IAS 24) standards. Furthermore, the impact of new control variables such as CGD and product market competition was tested for financial and non-financial sectors.

This paper investigates the relationship between artificial intelligence (AI) and corporate control in the United Arab Emirates (UAE) emerging market. An explanatory study was conducted using the deductive research approach. The nonprobability purposive sampling technique was implemented to select 10 highly experienced interviewees. In-depth primary data was collected through semi-structured interviews during 2019. Qualitative content analysis was used to test the study hypotheses. Empirical results show a significant positive impact of AI on firm performance, the auditing process and accounting information systems. More specifically, AI intervention increases firm productivity, creates new jobs and speeds up work processes. However, current AI technology is less likely to redefine auditing roles and still insufficient for developing accounting information systems. Human integration with AI systems will lead to more efficient results. This paper increases our understanding of how AI techniques can improve corporate control practices and the importance of selecting appropriate accounting professionals to decrease AI operation risks.

Purpose This paper aims to measure the extent of related party transactions disclosure and investigates their determinants across all listed companies in the United Arab Emirates (UAE) stock market during 2010 to 2012. Design/methodology/approach An index was manually constructed for related party transactions disclosure in accordance with International Financial Reporting Standards (IFRS) (IAS 24) using company financial statements. Findings Empirical results show relatively low level of related party transactions disclosure in the UAE emerging market. Furthermore, the multiple regression analysis (OLS) shows that related party transactions disclosure has significant relationships with the number of board members, audit quality, block-holders’ ownership, company size, leverage and product market competition. The multiple regression analysis (OLS) also highlights that industry type plays a significant and crucial role in disclosure levels across companies. Research limitations/implications This paper does not control for some corporate governance mechanisms such as audit committee characteristics. Practical implications This paper provides useful guidelines for several stakeholders including policy makers, accounting standard setters and corporate managers. Originality/value IFRS (IAS 24) standards were used to measure the strength of related party transactions disclosure. In addition, several variables were tested such as corporate governance mechanisms, ownership structure and product market competition on related party transactions disclosure over time; in an emerging market such as the UAE.

Purpose -The main purpose of this paper is to investigate the relationship between organizational culture and corporate risk disclosure for listed companies in the United Arab Emirates (UAE). Design/methodology/approach -The organizational culture is represented by four dimensions: Clan, Adhocracy, Market and Hierarchy (Cameron and Quinn, 1999). Data are computed from the financial reports of all listed companies on the UAE Stock Market as of the year ending 2005. The multiple regression analysis model, ordinary least square, is used to test the study hypotheses. Findings -Results show that the organizational culture of Hierarchy, which focuses on more formalized work procedures, has a significant positive effect on the companies' risk disclosure in the UAE business environment. Several other control variables are implemented to ensure reliability of results. Practical implications -Listed companies in the UAE are more responsive to formal rules and regulations on reporting risk disclosure, which is quite different from the "self-regulation" practices that are more common in some Western countries. Consequently, policymakers and regulators in the UAE, and in other countries with similar conditions, are encouraged to focus on continuous development of formal rules and procedures to enable more harmony with international best practices of risk disclosure. Originality/value -Unlike the majority of previous empirical studies, this is the first study to incorporate a behavioral endogenous organizational culture model to explain the main determinants of risk disclosure, which opens the door for more understanding of the risk disclosure output function as a management process.