Audit committee versus other governance mechanisms and the effect of investment opportunities: evidence from Palestine

Abdeljawad, Islam; Oweidat, Ghassan A.I.; Saleh, Norman Mohd

doi:10.1108/cg-06-2019-0185

Cited by 38 publications

(44 citation statements)

References 69 publications

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“…The audit committee size may influence the performance of the Bahrain insurance sector (Qeshtaa, & Ali, 2020). If the size of the audit committee comprises of diverse members with appropriate financial and accounting skills, then the quality performance may be realised (Abdeljawad, Oweidat, & Saleh, 2020). If the size of audit committee members comprises members with vast experience in auditing and assurance then, it is more susceptible that firms' financial performance in the Bahrain insurance sector is likely to improve (Al Farooque, Buachoom, & Sun, 2019).…”

Section: Audit Committeementioning

confidence: 99%

Audit Committee Characteristics and Firm Performance: Evidence from the Insurance Sector in Bahrain

Qeshta¹

2021

revistageintec

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This study examines the impact of the Audit Committee's characteristics on the performance of the five insurance companies listed on the Bahrain Burse over the period from 2012 to 2019. This study uses four board characteristics indicators; the size of the audit committee, independence of the audit committee, frequency of meetings of the audit committee, and expertise of the audit committee. Besides, this study takes into account two control variables, such as company size and firm age. Three-panel models used with a different dependent variable for each one were used in this study. The results of the study showed a statistically significant negative relationship between meetings of the audit committee and performance. The size of the audit committee, the independence of the audit committee and the experience of the audit committee have no significant association with the performance of the insurance companies listed on the Bahrain Stock Exchange. Alternatively, other AC features, different from those examined in this work, can be examined in future studies, such as the financial experience of its chair, the tenure of the committee and family ownership.

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Section: Audit Committeementioning

confidence: 99%

Audit Committee Characteristics and Firm Performance: Evidence from the Insurance Sector in Bahrain

Qeshta¹

2021

revistageintec

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“…Bradbury (1990) considers independent directors to have an incentive to ensure the effective running of the company. Studies reveal that board independence has a positive relationship with the AC formation (Pincus et al, 1989;Zhou et al, 2018;Abdeljawad et al, 2020). Consequently, we argue that the larger the proportion of independent members on the board, the more likely a firm to form an AC.…”

Section: Board Independencementioning

confidence: 74%

“…Thus, we consider three types of possible ownership: managerial, family, and foreign ownership. Moreover, Abdeljawad et al (2020) find that ownership concentration enhances the chance of AC formation.…”

Section: Company-specific Determinants Of Ac Formationmentioning

confidence: 92%

Audit Committee Formation: The Case of Poland

Puławska¹,

Dobija²,

Piotrowska³

et al. 2021

CEMJ

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Purpose: This study investigates the determinants of audit committee (AC) formation in a semi-mandatory setting of a European economy, in which ownership and control are predominantly in the hands of families and business groups, and the voluntary practice of forming an AC has not been widely accepted. Methodology: This research uses a sample of Polish nonfinancial firms listed on the Warsaw Stock Exchange (WSE) in 2008–2015. The study implemented logistic regression to test the role of the supervisory board (SB) and companies’ compositional characteristics in AC creation. Findings: Primary analysis provided evidence of an inverted association between commonly accepted determinants of AC formation – such as the number of independent members on the supervisory board (SB) – and accounting and finance expertise of the SB members. The study also revealed that companies with foreign ownership are more likely to have an AC. Originality: This study indicates an important relationship between the existence of other SB committees as a meaningful determinant of AC formation. This article is valuable for supervisory bodies and regulators as they provide insights into factors that influence audit committee formation.

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“…Then, cross-listing effectively relieves a series of agency problems ascribed to information asymmetry (Herrmann et al, 2015;Zhu et al, 2017). Thus, cross-listing is an effective corporate governance mechanism ( Abdeljawad et al, 2020;Arenekea & Kimani, 2019 ).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…The traditional 'bonding hypothesis' of cross-listing regards cross-listing as an effective mechanism of improving corporate governance. In recent years, western studies have provided empirical evidence proving that corporate governance effect of cross-listing can repress OI (Abdeljawad et al, 2020;Arenekea & Kimani, 2019). However, some scholars have also doubted the corporate governance effect of cross-listing, and proposed the opposite 'escape hypothesis' ( Gande & Miller, 2012;Licht, 2003;Sun et al, 2015 ).…”

Section: Dual Effects Of Cross-listing On Enterprise Investment Efficmentioning

confidence: 99%

Can cross-listing improve investment efficiency? Empirical evidence from China

Hong

Jasinskas

2020

Economic Research-Ekonomska Istraživanja

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With two views of 'premium' and 'discount,' traditional cross-listing motivation theory emphasises the effect of cross-listing on enterprise performance. The effect of cross-listing on enterprise performance is yet uncertain, manifesting that unknown factors play intermediate roles between them. To clarify the influence mechanism of cross-listing on enterprise performance, this study overcame the limitations in simple verification of the relationship between cross-listing and enterprise performance, and returned to the origin of cross-listing, namely, enterprise financing activity. Thus, the relationship between cross-listing and enterprise investment efficiency was analysed to determine the influence mechanism of cross-listing on enterprise performance. Based on financial data of A þ H cross-listed enterprises and A-share listed enterprises in Mainland China during 2008-2018, the effect of crosslisting on enterprise inefficient investment behaviours was empirically analysed. Results showed that 58.12% of the listed enterprises in China underwent under-investment (UI). Among them, cross-listed enterprises universally underwent over-investment (OI). Cross-listing remarkably remitted UI, but it further expanded OI. Overall, cross-listing led to the deterioration of investment efficiency. The effect of cross-listing on investment efficiency was discussed by combining basic economic activities of enterprises. Cross-listing theory was further enriched and perfected, and suggestions and countermeasures for improving enterprise performance by elevating investment efficiency were put forward.

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Audit committee versus other governance mechanisms and the effect of investment opportunities: evidence from Palestine

Cited by 38 publications

References 69 publications

Audit Committee Characteristics and Firm Performance: Evidence from the Insurance Sector in Bahrain

Audit Committee Characteristics and Firm Performance: Evidence from the Insurance Sector in Bahrain

Audit Committee Formation: The Case of Poland

Can cross-listing improve investment efficiency? Empirical evidence from China

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