Assessing the effectiveness of internal governance controls: The case of internal auditors skills and challenges in Libya

Elmghaamez, Ibrahim Khalifa; Ntim, Collins G.

doi:10.22495/cocv13i3p4

Cited by 17 publications

(13 citation statements)

References 34 publications

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“…Civil law with all the main laws, including the Civil Code, Income Tax Law (ITL), Libyan Banking Law (BL) and the Libyan Commercial Law (LCL) having undergone substantial amendments since 1954 (El-Firjani et al, 2014;La Porta et al, 1997;Elmghaamez & Ntim, 2016). Third, the use of LCL in 1954 was a pioneer effort in the corporate governance field.…”

Section: Second the Libyan Legal System Developed From A Combinationmentioning

confidence: 99%

Corporate boards, ownership structures and corporate disclosures

Alnabsha

Abdou

Ntim

et al. 2018

JAAR

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136

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Purpose: This paper investigates the effect of corporate board attributes, ownership structure and firm-level characteristics on both corporate mandatory and voluntary disclosure behaviour in annual reports of Libyan firms.Design/methodology/approach: Multivariate regression techniques are used to estimate the effect of corporate board and ownership structures on mandatory and voluntary disclosures of a sample of Libyan firms between 2006 and 2010.Findings: First, we find that board size, board composition, the frequency of board meetings and the presence of an audit committee have an impact on the level of corporate disclosure. Second, this study finds an evidence that director ownership, foreign ownership, government ownership and institutional ownership have a non-linear effect on the level of corporate disclosure. Finally, we find that firm age, liquidity, listing status, industry type and auditor type are positively associated with the level of corporate disclosure.Limitation: Future research could investigate disclosure practices using other channels of corporate disclosure, such as corporate websites. Useful insights may be offered also by future studies by conducting in-depth interviews with corporate managers, directors and owners regarding these issues.Implication: Investors may also rely on such corporate governance characteristics to shape expectations about voluntary and/or mandatory information disclosure. Originality/value: Existing disclosure studies have mainly examined governance and voluntary disclosure relationship in non-listed firms. Our study, therefore, extends, as well as contributes to the existing literature by the examining the governance-disclosure nexus relating to both mandatory and voluntary disclosures in both listed and non-listed firms.

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Section: Second the Libyan Legal System Developed From A Combinationmentioning

confidence: 99%

Corporate boards, ownership structures and corporate disclosures

Alnabsha

Abdou

Ntim

et al. 2018

JAAR

Self Cite

136

View full text Add to dashboard Cite

show abstract

“…This signifies that 12.4% and 10.2% of the ROA and EPS cumulatively is determined by the four corporate governance mechanisms included in our regression models, namely board size, number of board meetings, board independence and women on board. Consequently, it shows that the adjusted R2 score for EPS model is quite low, which could be enhanced by using a greater sample size, years of study, eliminating insignificant variables, such as board independence, and including other variables, such as CEO-duality and audit-committee independence (Elmghaamez and Ntim, 2016).…”

Section: Multivariate Regression Analysismentioning

confidence: 99%

Internal corporate governance mechanisms and financial performance: evidence from the UK's top FTSE 100 listed companies

Elmghaamez

Akintoye

2021

IJBGE

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This paper examines the relationship between internal corporate governance mechanisms and the financial performance of the UK's top FTSE 100 firms listed on the London Stock Exchange. By using a sample of 59 firms from the top FTSE 100 firms over the period from 2013 to 2018, our findings demonstrated that the lower number of board size and independent directors on the board, the better financial performance of the UK's top FTSE 100 listed firms. However, our study revealed that better financial performance is positively correlated with greater proportion of women on boards. Additionally, we found that board meeting is insignificantly associated with the financial performance of listed firms. This study has important implications for policy makers in the UK to have more women on boards and to decrease board size and the number of independent directors to the optimal size, since there is no one size fits all firms.

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“…Similarly, some scholars believe that adopters of ISAs are primarily required to have sufficient knowledge, skills and training for their audit staff to ensure proper application of ISAs (Ali et al , 2016; Ball, 2016; Samaha and Khlif, 2016; Kimeli, 2017; Sayumwe and Francoeur, 2017). By doing so, listed firms may be able to demonstrate to various stakeholders that they have enhanced the quality of their financial statements, and thus, achieve potential expected financial market consequences from adopting ISAs (Ball, 2001; Elmghaamez and Ntim, 2016; Burns and Fogarty, 2010).…”

Section: International Auditing Standards and Financial Market Indicatormentioning

confidence: 99%

Financial market consequences of early adoption of international standards on auditing: international evidence

Elmghaamez

Gerged²,

Ntim

2020

MAJ

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Purpose This paper aims to investigate the effects of the early adoption of International Standards on Auditing (ISAs) on Financial Market Indicators (FMIs) from a diffusion of innovation (DOI) theory perspective. Design/methodology/approach Using panel data from 110 countries in a period that spans from 1995 to 2014, this study applies an ordinary least squares regression model to investigate the financial consequences of adopting ISAs. This analysis was supplemented with estimating a fixed-effects and two-stage least squares regression models to address any concerns regarding the possible existence of endogeneity problems. Findings This study reports three key findings. First, the authors find that early ISAs adoption has a negative effect on several financial market consequences, namely stock market integration, market capitalisation, market turnover, market return, market development, stock price volatility and stock trading volume. Second, using an alternative measure to the one that is proposed by DOI theory, the authors found that some financial indicators have been significantly improved after ISAs adoption, but only for listed firms that prepared their financial statements under International Financial Reporting Standards and audited by ISAs simultaneously. Finally, the financialindicators of European stock markets, however, have insignificantly shrank post the mandatory adoption of ISAs in 2006. Practical implications The empirical evidence raises questions about how ISAs were enforced and implemented. For example, countries that adopted ISAs at early stages may have been dominated mostly by recently established stock exchanges. This implies a crucial need to determine and apply the best type of auditing regime that can increase investors trust and enhance the credibility of stock markets information, which might ultimately advance the FMIs over time significantly. Originality/value To-date, studies investigating the impact of the adoption of ISAs on FMI from a DOI theory perspective are virtually non-existent. The study, therefore, seeks to contribute to the extant literature by examining the influence of ISAs adoption on a wide range of FMIs.

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Assessing the effectiveness of internal governance controls: The case of internal auditors skills and challenges in Libya

Cited by 17 publications

References 34 publications

Corporate boards, ownership structures and corporate disclosures

Corporate boards, ownership structures and corporate disclosures

Internal corporate governance mechanisms and financial performance: evidence from the UK's top FTSE 100 listed companies

Financial market consequences of early adoption of international standards on auditing: international evidence

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