Internal Corporate Governance and Financial Performance Nexus; a Case of Banks of Pakistan

Bashir, Uzma

doi:10.11648/j.jfa.20180601.12

Cited by 10 publications

(4 citation statements)

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“…In their study, (Hutchinson & Zain, 2009) examined a sample of 60 Malaysian enterprises and concluded that there was no statistically significant relationship between the presence of an independent audit committee and firm performance. Other researchers that share similar views include (Al-Matari et al, 2012;Ghabayen, 2012;Bashir et al, 2018). Conversely, Dar et al (2011 discovered an inverse correlation between the variables.…”

Section: Literature Review and Hypotheses Development Audit Committee...mentioning

confidence: 85%

Audit Committee Characteristics and Firm Performance with the Moderating Role of Political Connections

Salameh Alkhazaleh,

Ibrahim,

Ali

2024

IJARAFMS

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This study introduces a theoretical framework that examines how a company's performance is influenced by the audit committee, and how this relationship is influenced by political connections. The research sample will comprise 75 non-financial public companies that were listed on the Amman Stock Exchange from 2017 to 2022. This study anticipates a favorable impact of the audit committee on the performance of the company. Moreover, it is expected that the presence of political links will enhance the relationship between the audit committee and corporate performance. This study aims to examine the moderating impact of political connections on relationships. The findings of this study can be partially extrapolated to the circumstances of other emerging economies owing to the shared characteristics of the commercial landscape. This study is the inaugural research undertaken in Jordan after the modification of corporate governance rules in 2017, which featured specific mandates for audit committees.

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Section: Literature Review and Hypotheses Development Audit Committee...mentioning

confidence: 85%

Audit Committee Characteristics and Firm Performance with the Moderating Role of Political Connections

Salameh Alkhazaleh,

Ibrahim,

Ali

2024

IJARAFMS

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“…EPS is measured by dividing the net income available to shareholders by the number of shares outstanding with information taken from the company's financial statements in the study period [132].…”

Section: Independent Variablesmentioning

confidence: 99%

Investor Response to Financial Performance and Business Prospect

Juniarti¹,

Chandra²,

Tandyono³

2021

Advances in Economics, Business and Management Research

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“…Therefore, failure of bank governance explains any similar crises that (may) occur in the future. Several studies have focused on bank corporate governance (Bashir et al, 2018;Sohail et al, 2017).…”

Section: Introductionmentioning

confidence: 99%

Earnings quality determinants in pre-corona crisis: another insight from bank core capital categories

Valdiansyah

Murwaningsari

2022

AJAR

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PurposeDiscretionary accruals are earnings quality proxies that illustrate that the greater the value of discretionary accruals, the greater the practice of earnings management and vice versa. High-quality financial reports (especially earnings quality) are expected to help investors and potential investors to make decisions. This study analyses the factors that affect earnings quality, such as pre-managed earnings, liquidity and efficiency. Furthermore, the authors identify the moderating effect of the governance mechanisms proxied by the proportion of independent commissioners in conventional commercial banks listed on the Indonesia Stock Exchange.Design/methodology/approachThis study uses 226 banking data in the pre-corona crisis period 2013 until 2019. The data were analyzed using EViews 10 for hypothesis and MS Excel for a differential test.FindingsThe results show that pre-managed earnings, liquidity and efficiency affect earnings quality. The governance mechanisms can moderate liquidity and efficiency on earnings quality, while pre-managed earnings cannot be moderated. The different bank categories (BUKU) of earnings management mechanisms are shown for each BUKU (BUKU 1, 3 and 4 perform earnings management by increasing earnings, BUKU 2 lowering earnings). Another thing is information on the earnings quality between BUKU 2 with BUKU 3 and BUKU 4 because of differences in capital and bank operating coverage regulations.Research limitations/implicationsFurther research expects to analyze the factors affecting banking earnings quality concerning applying IFRS 9 (PSAK 71) in Indonesia. Future researchers expect to apply mixed methods to verify the financial statement data and provide comprehensive discussion and genuine insight from their study. Future research requires more samples from companies or an international scale (cross country) to obtain maximum results and be generally accepted.Practical implicationsThis study implies that managers should have more control over pre-managed earnings and bank liquidity as manager's incentive to do earnings smoothing. Managers should also pay attention to cost-efficiency and effective implementation of governance mechanisms to maximize earnings quality. This study also implies that policymakers can encourage commercial banks to apply more prudential principles in terms of a reserve for failed loans to minimize earnings management in banking.Originality/valueThe significance of this study revealed in the discussion of the difference test between bank core capital categories (BUKU) and its relation to earnings quality.

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Internal Corporate Governance and Financial Performance Nexus; a Case of Banks of Pakistan

Cited by 10 publications

References 10 publications

Audit Committee Characteristics and Firm Performance with the Moderating Role of Political Connections

Audit Committee Characteristics and Firm Performance with the Moderating Role of Political Connections

Investor Response to Financial Performance and Business Prospect

Earnings quality determinants in pre-corona crisis: another insight from bank core capital categories

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