Board of directors, audit committee, and firm performance: Evidence from Greece

Zhou, Haiyan; Owusu‐Ansah, Stephen; Maggina, Anastasia

doi:10.1016/j.intaccaudtax.2018.03.002

Cited by 123 publications

(114 citation statements)

References 46 publications

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“…In Beasly's (1996) study, the audit committee within the company could not reduce the possibility of financial statement fraud. This result is supported by Zhou and Maggina (2018) who reported that there was no relationship between the audit committee and company performance.…”

Section: Audit Committee Size and Firm Performancementioning

confidence: 55%

Audit Committee, Financial Condition, and Firm Performance: Empirical Evidence From Indonesia

Wibawaningsih

Surbakti

2020

JAFM

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This study has examined the characteristics of the audit committee (size, independence, and expertise) in addition to financial Condition (leverage and firm size) in increasing firm performance. The random effect with panel data regression was applied on 309 firm-year observations of the manufacturing companies listed in the Indonesian Stock Exchange (IDX) for the period of 2016 - 2018. Return on Assets was used as the measurement of firm performance. This study’s results show a significant and positive relationship between firm size with performance and a significant negative relationship between leverage and firm performance. However, the findings show no significant relationship between the characteristics of the audit committee and firm performance. The results of this study have implications for investors, regulators, and market participants. Policy makers might use these findings, especially regarding the characteristics of the audit committee and financial conditions, for improving the performance of the companies in Indonesia

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Section: Audit Committee Size and Firm Performancementioning

confidence: 55%

Audit Committee, Financial Condition, and Firm Performance: Empirical Evidence From Indonesia

Wibawaningsih

Surbakti

2020

JAFM

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“…Their results reveal that firms which conform to the Cadbury Report recommendation to have at least three outside directors show an improvement in operating performance. In contrast, however, some studies find no significant explanatory power of board independence on firm performance (Dahya et al, 2016;Fosberg, 1989;Hermalin and Weisbach, 1991;Klein, 1998;Lefort and Urzúa, 2008;Mehran, 1995;Prevost et al, 2002;Ramdani and van Witteloostuijn, 2010), and yet others even report a negative relationship between board independence and firm performance (Agrawal and Knoeber, 1996;Bhagat and Black, 2001;Cavaco et al, 2017;Kiel and Nicholson, 2003;Mangena et al, 2012;Yermack, 1996;Zhou et al, 2018).…”

Section: Board Characteristics and Firm Performancementioning

confidence: 99%

Ownership structure, board of directors and firm performance: evidence from Taiwan

Kao¹,

2019

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Purpose Using a data set of listed firms domiciled in Taiwan, this paper aims to empirically assess the effects of ownership structure and board of directors on firm value. Design/methodology/approach Using a sample of Taiwanese listed firms from 1997 to 2015, this study uses a panel estimation to exploit both the cross-section and time–series nature of the data. Furthermore, two stage least squares (2SLS) regression model is used as robustness test to mitigate the endogeneity issue. Findings The main results show that the higher the proportion of independent directors, the smaller the board size, together with a two-tier board system and no chief executive officer duality, the stronger the firm’s performance. With respect to ownership structure, block-holders’ ownership, institutional ownership, foreign ownership and family ownership are all positively related to firm value. Research limitations/implications Although the Taiwanese corporate governance reform concerning the independent director system which is mandatory only for newly-listed companies is successful, the regulatory authority should require all listed companies to appoint independent directors to further enhance the Taiwanese corporate governance. Originality/value First, unlike most of the previous literature on Western developed countries, this study examines the effects of corporate governance mechanisms on firm performance in a newly industrialised country, Taiwan. Second, while a number of studies used a single indicator of firm performance, this study examines both accounting-based and market-based firm performance. Third, this study addresses the endogeneity issue between corporate governance factors and firm performance by using 2SLS estimation, and details the econometric tests for justifying the appropriateness of using 2SLS estimation.

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“…The Code introduced several accounting reforms to underpin new laws on securities exchanges alongside improved corporate governance practices. Many studies examine the impact of corporate governance on firm performance globally and in the countries of the Gulf Cooperation Council (GCC) (Abidin et al, 2009;Adusei, 2011;Fallatah and Dickins, 2012;Gupta and Sharma, 2014;Ahmed and Hamdan, 2015;Al-Ghamdi and Rhodes, 2015;Naushad and Malik, 2015;Baullay et al, 2017;Alqatamin, 2018;Zhou et. al., 2018;Rahman et al, 2019;Khalifa et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

Corporate Governance Mechanisms and Firm Performance in Saudi Arabia

Boshnak¹

2021

IJFR

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This paper examines the impact of corporate governance mechanisms including board size, independence, and meeting frequency, audit committee size and meeting frequency, CEO duality and ownership concentration on the operational, financial and market performance of Saudi listed firms using a contingent theoretical-based framework drawing on agency theory, stewardship theory and resource dependence theory. This study examines 210 listed Saudi Stock Exchange firms over the timeframe 2017 to 2019. The paper applies both a manual content and regression analysis approach. The results show that firm performance deteriorates with board size and independence, audit committee and meeting frequency, and the presence of CEO role duality, while performance improves with board meeting frequency and ownership concentration. Thus, Saudi firms should respond by maintaining smaller boards and more frequent meetings, keeping the Chair and CEO roles separate, and maintaining smaller audit committees with more focused meetings. Further, the appointment of independent directors only makes a meaningful contribution to firm performance where they are truly independent. Finally, more concentrated ownership tends to encourage better firm performance due to the regime of monitoring and discipline concomitant with more powerful shareholders. The implications of this paper are threefold. First, the implementation by Saudi Arabia of the latest corporate governance regulations and IFRS adoption almost certainly impact firm performance markedly. Second, corporate governance regulations should recognize the role of more frequent board meetings and more concentrated ownership in enhancing corporate performance. Third, stakeholders should apply pressure on investee firms to maintain smaller boards, engage genuinely independent directors, separate the role of Chairman and CEO, and maintain smaller audit committees with fewer and more effective meetings. The results should help corporate boards when deciding on the best corporate governance mechanisms to enhance firm performance. Further, the study should provide policy makers with a better understanding of the corporate governance structures required to promote better performance by drawing on existing theories and the empirical modelling, in an emerging economy setting such as Saudi Arabia, a new and broader data set, thereby informing better future policy and protecting shareholders’ interests.

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Board of directors, audit committee, and firm performance: Evidence from Greece

Cited by 123 publications

References 46 publications

Audit Committee, Financial Condition, and Firm Performance: Empirical Evidence From Indonesia

Audit Committee, Financial Condition, and Firm Performance: Empirical Evidence From Indonesia

Ownership structure, board of directors and firm performance: evidence from Taiwan

Corporate Governance Mechanisms and Firm Performance in Saudi Arabia

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