Corporate governance and diversity management: evidence from a disclosure perspective

Shohaieb, Doaa; Elmarzouky, Mahmoud; Albitar, Khaldoon

doi:10.1108/ijaim-03-2022-0058

Cited by 27 publications

(20 citation statements)

References 81 publications

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“…The audit cost will increase with the increasing demand to encourage auditors to disclose more information. Furthermore, the agency theory literature suggests that firms with good governance practices will enhance the management's engagement to disclose more information for the interest of the stakeholders (Shohaieb et al , 2022; Elmagrhi et al , 2020; Waresul Karim et al , 2013; Alnabsha et al , 2018). Noticeably, corporate governance is used in the literature to mitigate the conflict of interest between the management and the stakeholders (Buertey et al , 2020; Hammami, and Hendijani Zadeh, 2020).…”

Section: Introductionmentioning

confidence: 99%

The key audit matters and the audit cost: does governance matter?

Elmarzouky

Hussainey

Abdelfattah

2022

IJAIM

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Purpose This paper aims to investigate the relationship between key audit matters (KAMs) and audit costs and whether board size and independence affect this relationship. Furthermore, this paper examines the moderating effect of corporate governance on the relationship between KAMs and audit costs. Design/methodology/approach The authors hypothesise that disclosing more KAMs in the audit report is positively associated with audit costs because of the greater effort. The agency theory suggests that firms with good governance will mitigate the agency conflict of interest and improve financial reporting quality. Thus, good governance might moderate the relationship between reported KAMs and audit costs. The authors use a quantitative approach. The authors are using a sample of the UK FTSE all-share non-financial firms from 2014 to 2018 for the UK Financial Times Stock Exchange all-share non-financial firms. Findings The authors provide evidence of a significant positive relationship between KAMs and audit costs. The relationship is relatively higher when considering the independent directors' percentage as a moderating factor. These results came consistent with the agency theory literature. However, the authors found no empirical evidence to support a moderating effect of board size on the relationship between KAMs and audit cost. Practical implications The finding benefits the regulatory setters to better understand the consequences of the new auditing standards. This paper has theoretical and practical implications for regulators, standard setters, professional bodies, shareholders and academics. Originality/value This paper contributes to the literature assessing the regulatory changes related to audit reform and adds to the debate on the impact on audit costs. This paper underlines governance factors as a moderating role in this relationship between KAMs and audit costs.

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Section: Introductionmentioning

confidence: 99%

The key audit matters and the audit cost: does governance matter?

Elmarzouky

Hussainey

Abdelfattah

2022

IJAIM

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“…Board size is determined by natural log of total number of directors on BOD (Albitar et al , 2020; Ananzeh et al , 2022; Albitar et al , 2022; Abdoush et al , 2022). Board independence measured by number of independent directors as a percentage of total board members (Elmarzouky et al , 2021; Hussainey et al , 2022; Shohaieb et al , 2022). The presence of women on the board determines board diversity.…”

Section: Methodsmentioning

confidence: 99%

Board governance and audit report lag in the light of big data adoption: the case of Egypt

Ahmed

El-Halaby²,

Albitar³

2022

IJAIM

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Purpose This paper aims to examine the mediating role of big data adoption (BDA) on the association between board governance (BG) and audit report lag (ARL). Design/methodology/approach This study uses data extracted from financial reports for a sample from EGX100 over the period from 2015 to 2019. This study applies content analysis approach to measure the level of BDA. This study uses ordinary least squares, structure equation modelling and principal component analysis to investigate the relationship between BG, BDA and ARL. Findings The findings indicate that BDA can be used as a predictor of ARL for companies listed on the Egyptian stock exchange. The results show that board diversity has a significant effect on ARL when BDA is used as a mediator. Research limitations/implications This study only includes technology, telecommunications and health-care industries in the sample. Practical implications This paper raises investor and stakeholder awareness for the importance of BDA and corporate governance (CG) procedures in reducing audit report delays in developing countries such as Egypt. This study can assist regulators in developing audit report requirements and enforcing regulations to guarantee timely audit report publication. Originality/value This paper provides a shred of unique evidence on the role of BDA in mediating the relationship between BG and ARL in a developing country.

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“…The literature shows that high-quality information is a major factor that helps annual report users to make relevant decisions (Hussainey et al , 2003; Al Lawati et al , 2021; Shohaieb et al , 2022). As Beattie et al (2004) and Beretta and Bozzolan (2008) contend, even if the quantity of the disclosed information influences its quality, an assessment of disclosure quality cannot be based purely on this association.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Busy audit committee directors and corporate narrative disclosure in Oman

Lawati

Hussainey

Sagitova

2023

RAF

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Purpose This study aims to examine whether, and which type of, busy audit committee (AC) directors affect the quality and quantity of forward-looking disclosure (FLD). Design/methodology/approach The authors use content analysis to measure the quality and quantity of FLD. The authors use a sample of Omani financial institutions listed on the Muscat Securities Market for the period 2014–2018. Findings The authors find that overlapped AC chairs and total overlapped AC directors negatively (positively) affect disclosure quantity (quality). The authors also find that overlapped AC directors with financial expertise and those with multiple directorships positively affect disclosure quantity and quality. Originality/value This study offers new insights to policymakers (and managers) as it informs them about the benefits of overlapping AC directorship. It suggests that corporate governance codes should not limit overlapped AC direcotorship.

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Corporate governance and diversity management: evidence from a disclosure perspective

Cited by 27 publications

References 81 publications

The key audit matters and the audit cost: does governance matter?

The key audit matters and the audit cost: does governance matter?

Board governance and audit report lag in the light of big data adoption: the case of Egypt

Busy audit committee directors and corporate narrative disclosure in Oman

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