Does managerial behavior of managing earnings mitigate the relationship between corporate governance and firm value? Evidence from an emerging market

Nazir, Mian Sajid; Afza, Talat

doi:10.1016/j.fbj.2018.03.001

Cited by 82 publications

(100 citation statements)

References 98 publications

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“…The result contradicts Nazir's and Afza's (2018) [12] findings, which documented that board characteristics seem to be positively related to the firm's performance. This may be due to problems in coordinating the decision-making process, to communicate information, and attract investors.…”

Section: Resultscontrasting

confidence: 75%

“…As for foreign ownership, the mea surement used in the study was the percentage of ownership by two categories of foreigners in the public market, namely ownership by other GCC nationals and ownership by non-GCC natio nals. Based on previous research by Zouari and Taktak (2014) [25], and Nazir and Afza (2018) [12], this study employs the bank size, the bank age, the leverage and the return on the equity of the previous year as control variables. These variables were generally found to represent the impact on financial performance.…”

Section: Resultsmentioning

confidence: 99%

“…A good quality board alliance with better governance may support the banks' monitoring role and ultimately enhance the performance. Thus, a larger board size and independent directors relate to better firm performance (Nazir and Afza, 2018) [12], while higher ranking board independence is associated with greater firm value (Zhu et al, 2016) [13]. In contrast, a small board size with diverse experience and knowledge, allows easy coordination and communication (Al-Saidi and Al-Shammari, 2013) [14].…”

Section: Brief Literature Review and Hypotheses Board Effectivenessmentioning

confidence: 99%

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Panel data analysis of ownership structure and board effectiveness influence on GCC bank performance

Bajrei¹,

Ismail²,

Nor³

2018

EA-XXI

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This study aims to analyze the influences of board directors' effectiveness and ownership on bank performance among the six Gulf Cooperation Council (GCC) countries: Saudi Arabia, UAE, Oman, Kuwait, Bahrain, and Qatar. Five hypotheses were singled-out for further approbation. Unbalanced secondary panel data were collected from 68 banks with a total of 268 observations for the period 2012-2015. During this period, the economy of GCC was experiencing the fall of oil price that resulted in low GDP, increase fiscal deficit, reduction of banks reserves and decline in banks' profitability and the share prices. These were the critical years to the banks in GCC countries as their performance was crucial. Besides facing diplomatic crisis in the following years, GCC countries strived to improve their financial sector. Secondary data was obtained from banks' annual reports, websites of stock exchange and Thomson Reuters Datastream. The findings revealed a significant association between board of directors' effectiveness, government-owned banks, and GCC national ownership with the banks' performance. Findings also showed the best board structure for banks and the need to unify the regulations among the six countries. As for the policymakers, the outcome of this study might indicate needed reconsideration of the legal infrastructure and facilitates of investment as well as signal to management, investors and auditors the best ways to invest and control the banks. The outcome may help to enhance closer ties among the GCC countries.

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Section: Resultscontrasting

confidence: 75%

Section: Resultsmentioning

confidence: 99%

Section: Brief Literature Review and Hypotheses Board Effectivenessmentioning

confidence: 99%

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Panel data analysis of ownership structure and board effectiveness influence on GCC bank performance

Bajrei¹,

Ismail²,

Nor³

2018

EA-XXI

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“…Aside from the audit process correctly according to its function, quality audits are also measured use auditor individually like the size of the firm of auditors, auditor specialization and tenure (Meckfessel & Sellers, 2016;Nagy, 2014). Audit quality will be able to restrain earnings management and tax planning activities carried out by the company so as to produce reliable and accurate information that can be used by investors and other stakeholders and this ultimately increases the firm value for the better (Nazir & Afza, 2018;Afza & Nazir, 2014;Putri & Yuyetta, 2013).…”

Section: Audit Qualitymentioning

confidence: 99%

The Influence of Earnings Management and Tax Planning on Firm Value with Audit Quality as Moderating Variable

2019

RJFA

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This study aimed to analyze the influence of Earnings Management and Tax Planning on Firm Value with Audit Quality as a moderating variable. With purposive sampling method obtained data from 481 manufacturing firms in Indonesia are taken from the Indonesia Stock Exchange 2013-2017 period. Using multiple regression and moderation analysis found that the Earnings Management have a positive influence on Firm Value and Tax Planning as well as the effect on Firm Value. As a moderating variable, Audit Quality weaken the influence of Earnings Management on Firm Value significantly but not significantly weaken the influence of Tax Planning on Firm Value.

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“…Part of the problem lies in underdeveloped accounting information systems which restrict the implementation of performance audit procedures, as well as some industry-specific factors that influence criteria selection and evidence interpretation. The cases we have explored show that to provide a comprehensive assessment of company performance, researchers use both accounting (ROA, ROE) and market-based indicators, such as Tobins Q [5,6].…”

Section: Introductionmentioning

confidence: 99%

Performance Audit in Construction Organisations: Relevant Criteria and Analytical Procedures

Amanzholova¹,

Karakchieva²

2019

КФ

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Performance audit is becoming increasingly ubiquitous in commercial and business spheres internationally. Due to itsimportant role in promoting efficient organisational and administrative practices, performance audit is becoming asubject more rigorously analised in the academic sphere.This study seeks to develop and test analytical tools of performance audit in Russian construction organisations. Weplace emphasis on the industry-specific dimensions of information disclosure. We intend to offer a solution to severalcrucial challenges in the field, which will allow for the development of a comprehensive method to implement analyticalprocedures. This is done with a view towards obtaining and collating sufficient and adequate audit evidence to helpachieve business goals.In order to devise a consistent methodology, first, a link is highlighted between construction industry constraintsand performance audit criteria. Second, an algorithm is developed to carry out comparative integrated estimation ofperformance audit criteria in order to shortlist relevant indicators. Third, the algorithm is tested using financial reportingof selected construction companies, which makes it possible to build a consistent system of performance audit criteriaand identify a reliable set of controlled parameters.A profile of practical analytical procedures, performance audit criteria and measurement indicators is formed throughfinancial and performance audit and imbedded statistical methods. Implementing this approach will be seen to closesome information gaps commonly found in the reporting data of construction industry, as it links the subject area ofperformance audit and the objective criteria of effectiveness, efficiency and economy.The findings are presented with reference to existing statistical surveys on construction industry constraints. Whilerecent studies provide a broader picture across construction industry, they do not address its regional aspects. Assuch, within this study we have carried out estimates of performance indicators for construction companies operatingin the Novosibirsk region. The estimates are based on the information available through Professional Market andCompany Analysis System. As a result, a system of performance audit criteria is identified in relation to the dimensionsof effectiveness, efficiency and economy and a framework of controlled parameters is shaped. The level of disclosureconcerning these parameters presented in a company’s reporting is supposed to determine the decisions of stakeholdersand potential investors.In consideration of further research, this study highlights that it is necessary to identify and validate performance criteriain view of the fact that only few construction companies are profitable. The mix of qualitative and quantitative analyticalprocedures demonstrated herein is an effective approach to address the challenges of information integrity assessment.We consider that the most promising aspect of this study is the analysis of how the quality and amount of informationdisclosed in the reporting of construction companies affects their public image and business activities. This can be seento have widespread industry and academic applications. Additionally, our approach represents a suitable framework forpossible adaptation towards not only other industries, but also further development of the methodological approachitself

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Does managerial behavior of managing earnings mitigate the relationship between corporate governance and firm value? Evidence from an emerging market

Cited by 82 publications

References 98 publications

Panel data analysis of ownership structure and board effectiveness influence on GCC bank performance

Panel data analysis of ownership structure and board effectiveness influence on GCC bank performance

The Influence of Earnings Management and Tax Planning on Firm Value with Audit Quality as Moderating Variable

Performance Audit in Construction Organisations: Relevant Criteria and Analytical Procedures

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