Audit committee’s chairman characteristics and auditor choice: an empirical evidence from Malaysia ACE market

Alsayani, Esam Mohammed A.; Nor, Mohamad Naimi Mohamad; Al‐Matari, Ebrahim Mohammed

doi:10.1080/23311975.2022.2156086

Cited by 7 publications

(4 citation statements)

References 109 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Some AC characteristics that curtail EM have not been studied extensively in developing countries (Al-Absy et al , 2019; Cheung and Chung, 2022), especially in the Palestinian context. So, this study includes several control variables theoretically related to EM and corporate governance (Mansour et al , 2022b) in the econometric model: AC size, AC independence, AC expertise, firm age, firm size and leverage (Alsayani et al , 2023; Ghaleb et al , 2021; Mansour et al , 2022a).…”

Section: Methodsmentioning

confidence: 99%

“…The finding shows that multiple directorships of board members harmed the firm effectiveness and performance. Alsayani et al (2023) used a sample of 111 firms listed on the Malaysian ACE market and found that only the AC's chairman's tenure and busyness were significant factors influencing auditor choice. In light of the conflicting and inconclusive arguments, the following nondirectional hypothesis is posited: H1.…”

Section: Audit Committee Multiple Directorships and Earning Managementmentioning

confidence: 99%

“…An independent AC is generally considered good for a company because it can help ensure that the committee can provide objective and unbiased assessments of the financial statements and reduce the EM (Al-Absy et al , 2019). Theoretically, as the AC’s independence increases, so does the efficiency of its monitoring position (Fama, 1980; Alkebsee et al , 2022; Alsayani et al , 2023).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

See 2 more Smart Citations

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

Saleh,

Mansour

2024

ARJ

View full text Add to dashboard Cite

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.

show abstract

Section: Methodsmentioning

confidence: 99%

Section: Audit Committee Multiple Directorships and Earning Managementmentioning

confidence: 99%

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

See 1 more Smart Citation

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

Saleh,

Mansour

2024

ARJ

View full text Add to dashboard Cite

show abstract

“…The study recommended that insurance firms in Nigeria should maintain a sufficiently large and independent board, establish an independent and effective audit committee, and ensure the committee meets frequently to promote effective monitoring of the audit process. Alsayani et al (2023) investigated the impact of audit committee chairman characteristics on the choice of auditor in the ACE market of Malaysia. Using a sample of 120 companies listed on the ACE market from 2017 to 2019, the authors examined the relationship between audit committee chairman characteristics (including gender, age, tenure, education, and expertise) and the choice of auditor (Big Four or non-Big Four auditors).…”

Section: Introductionmentioning

confidence: 99%

Determinants of Auditor Choice in Emerging Markets: Evidence from Egypt

Fadaly

2024

المجلة العلمية للدراسات والبحوث المالية والتجارية

View full text Add to dashboard Cite

The study aims to examine the various factors that affect the selection of auditors in Egypt's developing market. Eight characteristics of the audit firm has been examined as independent variables, Audit firm fees, audit firm reputation with investors, audit firm reputation with corporate broker, audit firm reputation with external advisor, industrial specialization, geographic proximity, management preference for specific auditor, long-term relationship with current auditor. A quantitative research method was employed to achieve this objective, utilizing a survey questionnaire to gather primary and secondary data. The survey was distributed to the audit committees of selected firms in the Egyptian market, and the data collected was analyzed to fulfill the study's objectives. According to the research results, three of the eight variables analyzed were found to have an impact on the selection of auditors in Egypt's emerging market. These variables include the fees charged by the audit firm and the firm's reputation with corporate brokers and external advisors. Conversely, the remaining five factors were not observed to significantly affect auditor selection.

show abstract

Is gender diversity is diversity washing or good governance for firm sustainable development goal performance: A scoping review

Asif,

Khan,

Irfan

et al. 2023

Environ Sci Pollut Res

View full text Add to dashboard Cite

Audit committee’s chairman characteristics and auditor choice: an empirical evidence from Malaysia ACE market

Cited by 7 publications

References 109 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

Determinants of Auditor Choice in Emerging Markets: Evidence from Egypt

Is gender diversity is diversity washing or good governance for firm sustainable development goal performance: A scoping review

Contact Info

Product

Resources

About