Internal governance and outside directors’ connections to non-director executives

Hoitash, Udi; Mkrtchyan, Anahit

doi:10.1016/j.jacceco.2021.101436

Cited by 25 publications

(22 citation statements)

References 92 publications

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“…The economic significance of Flu is also comparable to the prior studies (e.g., Jha and Chen [2015], Call et al. [2017], Hoitash and Mkrtchyan [2022]). Specifically, a one‐standard‐deviation increase in Flu be associated with an increase of 1.04 day (= e [3.075 × 0.013] ) in reporting lag and 6.26% (= 0.289 × 0.013 ÷ 0.06) in the likelihood of reporting errors (relative to the average Error ).…”

Section: Main Empirical Resultssupporting

confidence: 88%

Flu Fallout: Information Production Constraints and Corporate Disclosure

CHEN

et al. 2023

J of Accounting Research

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Section: Main Empirical Resultssupporting

confidence: 88%

Flu Fallout: Information Production Constraints and Corporate Disclosure

CHEN

et al. 2023

J of Accounting Research

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“…However, they did not test whether the changes in REM induced by changes in board structure in the post-regulation period affected firm performance. Hoitash and Mkrtchyan (2022) extend this strand of research by investigating whether boards can acquire information from executives not serving on the board (i.e., internal ties), and whether such a governance arrangement helps boards to exercise better monitoring. The authors theorise that internal ties 'may increase the likelihood of information sharing, as social ties often lead to more frequent interactions and, more importantly, foster trust between the connected parties … Sharing information with the board can also be beneficial for the connected executives; as such connections may mitigate the executives' potential fear of retaliation by the CEO' (p. 2).…”

Section: Corporate Boards Top Management Team Executive Compensation ...mentioning

confidence: 99%

Real earnings management: A review of the international literature

Habib

Ranasinghe

et al. 2022

Accounting & Finance

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We provide a systematic literature review of the determinants and consequences of real earnings management (REM) in an international context. We provide a theoretical framework for REM, the development of REM measures, and review the determinants of REM, categorising these into financial reporting, auditing, governance and controls, capital market incentives, and regulatory determinants. We then review the empirical literature on the consequences of REM. We provide some suggestions for future research on measurement issues related to REM, and on filling gaps in the empirical research investigating its determinants and consequences.

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“…According to Chung and Zhu (2021), It has been shown that companies with expert outside directors in China perform better than inside expert directors; the reason is that the board composition remains the same even as the environment changes. Information sharing by nonexecutive directors to outside directors helps them access and verify the information provided by the CEO, which allows them to perform better in corporate decision-making (Hoitash & Mkrtchyan, 2022). A board's role is to reduce the risk of failure and improve organizational performance by using organizational resources optimally.…”

Section: Literature Reviewmentioning

confidence: 99%

The influence of Corporate Governance on Credit Rating in Pakistan

Salman

Ayaz

Riaz

et al. 2022

International Journal of Social Science Entrepreneurship

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Credit rating agencies have great significance in the growth of the financial industry by giving confidence to borrowers and lenders through expressing their opinion on the ability of the institution to meet its financial obligation through credit ratings. Therefore, if the governance structure is weak, credit rating agencies are likely to expect poor financial position and vulnerability of the stakeholders' interests. The purpose of this study is to determine whether the corporate governance characteristics of Islamic banks influence Islamic banks' credit ratings. Data is calculated from the annual reports of 22 banks in Pakistan for 14 years from 2007 to 2014. The results show that the board size, board members' independence, CEO tenure, blockholders, foreign investors, Shariah board size, education levels of Shariah supervisors, and Shariah board expertise negatively affect credit rating when bank-specific financial variables are used as the control variables. On the other hand, credit rating is positively correlated with board independence, foreign directors, women directors, board meetings, listing shares, size of audit committee members, audit committee meetings, changes in the structure of the shariah supervisory board, and foreign shariah experts. As a result, Islamic banks in Pakistan show strong corporate governance, leading to better credit ratings.

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Internal governance and outside directors’ connections to non-director executives

Cited by 25 publications

References 92 publications

Flu Fallout: Information Production Constraints and Corporate Disclosure

Flu Fallout: Information Production Constraints and Corporate Disclosure

Real earnings management: A review of the international literature

The influence of Corporate Governance on Credit Rating in Pakistan

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