Audit quality, media coverage, environmental, social, and governance disclosure and firm investment efficiency

Hammami, Ahmad; Zadeh, Mohammad Hendijani

doi:10.1108/ijaim-03-2019-0041

Cited by 104 publications

(100 citation statements)

References 110 publications

(183 reference statements)

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“…This commission is composed by non-executive directors, with no executive functions. Hammami and Hendijani Zadeh (2019) showed that the quality of the audit is an important factor in the transparency of the disclosure of social and governmental responsibility. On the other hand, Khlif and Souissi (2010) demonstrated that large auditing companies exert more pressure on their clients by improving their sustainable disclosure policies in terms of quantity, quality and timely disclosure to increase investor confidence in companies' annual and interim information.…”

Section: Influence Of Corporate Governancementioning

confidence: 99%

The influence of corporate governance on corporate sustainability: new evidence using panel data in the Iberian macroeconomic environment

Cancela

Neves

Rodrigues

et al. 2020

IJAIM

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Purpose In the macroeconomic environment of the Iberian Peninsula, this paper aims to examine the influence of corporate governance characteristics on corporate sustainability performance. The purpose of this paper is to address corporate practices while determining which corporate governance characteristics can improve corporate sustainability, considering, for this purpose, three dimensions of sustainability: economic, environmental and social. Design/methodology/approach This sample comprises 99 non-financial companies of the Iberian Peninsula, during the 2013–2017 period. The authors have used the panel data methodology, specifically the generalized method of moments (GMM) estimation method proposed by Arellano and Bover (1995) and Blundell and Bond (1998) to test the hypotheses formulated. Findings The results obtained have shown that corporate sustainability performance is affected differently depending on the sustainability dimension that is considered. Specifically, the economic dimension is determined by public debt, the board size, board diversity and the existence of an audit committee. Regarding the environmental dimension, the board size and the presence of the audit committee, as well the corporate social responsibility committee, are the most important determinants. Finally, the social dimension was influenced by the board size, audit committee and the control variable of capital structure, which means that in this dimension, the sources of financing used by the company also help in determining its levels of social concern. Originality/value To the best of the authors’ knowledge, this is the first time that a study has been carried out in the Iberian Peninsula on the corporate sustainability using GMM-system model for three dimensions of sustainability. Corporate sustainability depends on external and internal factors of companies. Therefore, regulators and managers should realize that they will have to be more effective in their statements.

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Section: Influence Of Corporate Governancementioning

confidence: 99%

The influence of corporate governance on corporate sustainability: new evidence using panel data in the Iberian macroeconomic environment

Cancela

Neves

Rodrigues

et al. 2020

IJAIM

View full text Add to dashboard Cite

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“…DeAngelo (1981) defines audit quality as the market-assessed likelihood of detecting and reporting deviations in the financial statements from the regulated standards. Prior studies (Francis and Wang, 2008;Lawrence et al, 2011;Hammami and Hendijani Zadeh, 2019;Shahzad et al, 2019) suggest that the Big 4 auditors critically assess the risk of managerial opportunism in order to identify material errors and misrepresentations in the accounting system. Signalling theory suggests that the presence of Big 4 auditors enhances the credibility and reputation of firms, which enables them to send positive signals to the market (Morris, 1987).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

The impact of audit quality on real earnings management in the UK context

Chowdhury

Eliwa

2021

IJAIM

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Purpose The purpose of this paper is to examine whether audit quality influence real earnings management activities using a sample of UK listed firms that have strong incentives to manage earnings upward through meeting past year’s earnings as a benchmark in the post-adoption period of International Financial Reporting Standards (IFRS). Design/methodology/approach The authors use a sample of 4,774 firm-year observations of UK listed firms during the period 2005–2018. Univariate and multivariate analyses have been conducted to test the association after controlling for firm characteristics and institutional variables. Findings The study reports that the presence of Big 4 auditors is significantly and positively related with greater levels of sales and discretionary expenses manipulation. Though the authors do not find any conclusive evidence on production costs manipulation, the aggregated measure of real earnings management shows a significant positive association with the presence of Big 4 auditors. Practical implications The study implies that managers who have incentives to manage earnings upward around the UK firms take advantage of the accounting flexibility in defining policies while reducing information asymmetry among the investors to signal better future performance. The approach to detect earnings manipulation as described in the auditing standards fails to limit the managerial use of real activities due to limited scope and unclear guidance. Thus, due to the significant impact on public policies, the results should, therefore, be of interest to the regulators and standard setters. Originality/value To the best of the authors’ knowledge, this is the first study that examines the association between audit quality and real earnings management for the UK all-purpose operational firms in sampled data that just meet past year’s earnings as a benchmark in the post-IFRS period.

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“…Thus, it is necessary to conduct an audit not only at the final stage of project implementation, but also to determine the rationality of resource allocation by the state already at the planning stage. Therefore, the article proposes to determine the audit algorithm in terms of control of the following functions of public administration (Abdullah et al, 2018;Hammami and Hendijani Zadeh, 2019;Vasylishyn and Yarova, 2020).…”

Section: Achievability Of Strategic Objectivesmentioning

confidence: 99%

Audit as an Element of Public Governance

Popov

Приходченко

Лесик

et al. 2021

EEA

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The article considers some aspects of the implementation of the audit system of public administration, taking into account the transformation processes of national socio-economic systems, taking into account the domestic realities of society. At present, Ukraine is on the path of transition to European integration processes, including in the system of reorganization of public power. An effective mechanism for controlling and monitoring the implementation of management functions is the introduction of public administration audit. However, for Ukraine such processes are new and require adjustment of regulatory and legal support, organizational structures, financial support and managerial transformations in the public sector system in order to implement an effective public audit system. The article considers the theoretical aspects of public audit, which define it as a management process of high public importance. In addition, public administration audit is defined as a type of professional activity that requires taking into account not only the general principles of auditing, but also the specifics of public administration: publicity, high social significance, political and economic lobbying processes. Objects of public audit are considered, their characteristic is given. As a result of the analysis, the priority of conducting a public audit is determined in the system of planning, formation and distribution of budget funds at different levels. A model of public audit of budget processes has been developed and described, which provides not only control of expenditures, but also their rationalization by improving management mechanisms. Problematic aspects of the implementation of public audit in practice will be the subject of further research. The audit will contribute to the rationalization of the use of budget funds, the establishment of an effective set of management processes.

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Audit quality, media coverage, environmental, social, and governance disclosure and firm investment efficiency

Cited by 104 publications

References 110 publications

The influence of corporate governance on corporate sustainability: new evidence using panel data in the Iberian macroeconomic environment

The influence of corporate governance on corporate sustainability: new evidence using panel data in the Iberian macroeconomic environment

The impact of audit quality on real earnings management in the UK context

Audit as an Element of Public Governance

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