Audit committee chair effectiveness and firm performance: The mediating role of sustainability disclosure

Alodat, Ahmad Yuosef; Amosh, Hamzeh Al; Khatib, Saleh F. A.; Mansour, Marwan

doi:10.1080/23311975.2023.2181156

Cited by 25 publications

(22 citation statements)

References 59 publications

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“…There is little research on AC overlap and EM, and these studies have had conflicting results (Al-Absy et al , 2019; Alodat et al , 2023). Based on the study, FOWN has an important impact on the DAC and ACMD nexus.…”

Section: Empirical Results and Discussionmentioning

confidence: 99%

Is audit committee busyness associated with earnings management? The moderating role of foreign ownership

Saleh,

Mansour

2024

ARJ

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Purpose An audit committee (AC) whose members hold multiple directorships can adversely affect a firm’s earnings management (EM) behavior due to a lack of time that can prevent members from performing their responsibilities effectively. This paper aims to investigate the moderation role of foreign ownership (FOWN) on audit committee multiple directorships (ACMD) as it relates to accrual EM. Design/methodology/approach Using a sample of 528 observations for Palestinian listed companies over 2009–2019, this research used panel data regression to explore the specified relationships. Additionally, the study conducted a regression analysis using alternative measurements of the ACMD and the extended modified Jones model (2006) to assess robustness. Furthermore, generalized method of moments and a two-stage least squares method were used to address potential endogeneity concerns. Findings The results show that multiple directorships lead to a scarcity of time that can adversely affect efficient management oversight and documented an adverse association between FOWN and discretionary accruals. The results are consistent with agency theory that FOWN brings in expertise and experience from countries with strong governance to benefit local firms and thus recover control, lower agency costs, raise a firm’s value and thus alleviate EM. Originality/value This study provides unique explanations and recommendations for restraining excessive ACMD because this practice decreases managers’ ability to decrease EM. The mixed outcomes in earlier literature on the AC characteristics and EM also indicate a contingent role that may clarify this inconsistency.

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Section: Empirical Results and Discussionmentioning

confidence: 99%

Is audit committee busyness associated with earnings management? The moderating role of foreign ownership

Saleh,

Mansour

2024

ARJ

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“…Dicuonzo et al (2022) found that size and composition of the board contribute positively to overall sustainable performance for European banks Alodat et al (2022). confirmed that not only the board size, but the board gender diversity(Alodat et al, 2023a) and the effectiveness of the board(Alodat et al, 2023b); moreover, the effectiveness of the audit committee(Alodat et al, 2023c) has significant and positive effects on firms' performance, and this correlation can be enhanced by sustainability disclosure, therefore, sustainability reporting plays an important mediating role Miranda et al (2023). analyzed 75 European banks, and they found that ESG performance negatively associated with board size.Based on the above literature background we define the below hypothesis:H6.…”

mentioning

confidence: 85%

“…, 2023a) and the effectiveness of the board (Alodat et al. , 2023b); moreover, the effectiveness of the audit committee (Alodat et al. , 2023c) has significant and positive effects on firms' performance, and this correlation can be enhanced by sustainability disclosure, therefore, sustainability reporting plays an important mediating role.…”

Section: Literature Background and Hypothesis Developmentmentioning

confidence: 99%

Is ESG disclosure associated with bank performance? Evidence from the Visegrad Four countries

Lamanda,

Tamásné Vőneki

2023

MEQ

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PurposeThe purpose of this paper is to investigate the relationship between ESG disclosure and banks performance and to discuss how banks are committed to the implementation of sustainability issues.Design/methodology/approachThe authors examined the annual, risk and sustainability reports published by 26 banks located in four Central European countries (Czech Republic, Hungary, Poland and Slovakia) in the period of 2017–2021. The authors applied the methodology of content analysis and developed indexes. Panel regression was performed to improve and ensure the robustness of this study.FindingsThe results show that social and governance aspects dominate the ESG preparedness; however, after 2019, there was a significant improvement in the integration of environmental issues. This study confirms a strong association between bank size (total assets) and ESG reporting, and between capital adequacy and ESG reporting. The results demonstrate that there is no connection between banks' operational and financial performance and ESG disclosure. Finally, this study concludes that the integration of ESG risks into the risk management framework is at an early stage.Practical implicationsThis study also adds to the existing research in the field of sustainability reporting. For regulators, this research proves their essential role in the facilitation of sustainable development. For practitioners, the ESG disclosure index could serve as a “detection tool” in the sustainability self-assessment process.Originality/valueThe authors examined – through a self-developed multidimensional ESG disclosure index – the sustainability reporting of the banking sector in four countries from the Central European region.

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“…In addition, Unite et al (2019) demonstrated that male directors and FDs possessed similar competency levels, which propounded that elevating women's presence on boards would not generate discernible impacts on firm outcomes. Lara et al (2017) (Alodat, Al Amosh, Khatib, & Mansour, 2023;Mansour, Hashim, et al, 2022). Specifically, 'soft law' offered enterprises certain flexibility in incorporating relevant guidelines and sufficient adaptation time (Mansour, Aishah Hashim, et al, 2023).…”

Section: Hypothesis Developmentmentioning

confidence: 99%

The board gender composition and cost of debt: Empirical evidence from Jordan

Mansour,

Al Zobi,

Saleh

et al. 2023

Bus Strat Dev

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The present research aims to examine the influences of board gender composition on debt costs and its significance to Jordanian creditors: mainly banks, using agency and resource dependence theories. A sample of 113 non‐financial Jordanian firms listed on the Amman Stock Exchange (ASE) from 2010 to 2019 was utilised to explore the impact of board gender on the cost of debt financing through panel regression analysis. To tackle endogeneity concerns, we employ a two‐step system generalised method of moments estimator. The findings discovered that more female directors on firm boards generated economic benefits for non‐financial sectors, which achieved an average 0.75% cut‐off interest rate incurred by lenders compared to the counterparts with fewer female directors. Our findings are still robust to endogeneity concerns. The findings offered valuable insights for academics, shareholders, firms, and regulators. Shareholders are required to provide more pressure on firms to enhance gender equality. Firms should adjust board gender composition via the inclusion of more female directors while regulators should develop guidelines, such as a minimum female quota in promoting more females to the board. The finding generalisability is limited to developing markets with similar settings. This study bridged a vital gap in the governance literature on the nexus between board gender composition and debt costs in Jordanian contexts where no minimum gender quota exists.

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Audit committee chair effectiveness and firm performance: The mediating role of sustainability disclosure

Cited by 25 publications

References 59 publications

Is audit committee busyness associated with earnings management? The moderating role of foreign ownership

Is audit committee busyness associated with earnings management? The moderating role of foreign ownership

Is ESG disclosure associated with bank performance? Evidence from the Visegrad Four countries

The board gender composition and cost of debt: Empirical evidence from Jordan

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