Royal Family Members and Corporate Governance Characteristics: The Impact on Earnings Management in UA

Almuzaiqer, Mohammed Ali; Fatima, A.H.; Ahmad, Maslina

doi:10.33736/ijbs.4834.2022

Cited by 2 publications

(2 citation statements)

References 55 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Ref. [29] identified IFRS as a significant mediator in the association between audit committee effectiveness and financial reporting quality [24,27,31,32,[51][52][53]. These studies collectively provide support for the intermediary function of IFRS in enhancing the quality of financial reporting [52,[54][55][56][57].…”

Section: Confirmatory Factor Analysis (Cfa)mentioning

confidence: 97%

“…An essential aspect of corporate governance is the ability of competent directors to possess the necessary skills and knowledge to provide effective oversight and guidance in financial reporting matters [30][31][32]. Individual proficiency in IFRS can help detect potential reporting discrepancies, ensure compliance with established guidelines, and maintain the accuracy and reliability of financial records [33].…”

Section: The Mediation Role Of the Adoption Of Ifrs Between Directors...mentioning

confidence: 99%

See 1 more Smart Citation

Corporate Governance and Financial Reporting Quality: The Mediation Role of IFRS

2023

View full text Add to dashboard Cite

This study investigates how corporate governance affects the financial reporting quality of selected banks in Iraq, focusing on the role of IFRS adoption. The research collected data from 298 questionnaires distributed among diverse private banks, including IS Bank, Vakif Bank, RT Bank, Cihan Bank, Bank of Iraq, and TD Bank. Sobel analysis was used to analyze the mediation between variables. The results demonstrate that IFRS adoption plays a positive mediating role in the relationship between corporate governance and financial reporting quality in private banks. The study highlights the practical benefits of implementing strong corporate governance practices and adopting IFRS, such as improved reporting quality, regulatory compliance, better decision-making, and enhanced reputation. Private banks in Iraq can utilize these findings to enhance their financial performance and reputation by shaping their accounting and governance policies. The research paper provides original insights into the positive impact of corporate governance on financial reporting quality while considering the mediating influence of IFRS adoption, making it a valuable contribution to the research community.

show abstract

Section: Confirmatory Factor Analysis (Cfa)mentioning

confidence: 97%

Section: The Mediation Role Of the Adoption Of Ifrs Between Directors...mentioning

confidence: 99%

Corporate Governance and Financial Reporting Quality: The Mediation Role of IFRS

2023

View full text Add to dashboard Cite

show abstract

The interaction effect of auditor industry specialisation and board governance on financial reporting timeliness: evidence from the UAE

Almuzaiqer

Ahmad²,

Fatima³

2023

JEAS

View full text Add to dashboard Cite

PurposeThis study investigates how the timeliness of financial reporting by listed companies in the United Arab Emirates (UAE) is influenced by the interaction effect between industry-specialist auditors and board governance.Design/methodology/approachThe Emirati capital markets – the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) – were used to obtain the data, which covered the seven-year period between 2011 and 2017. In total, 385 observations were obtained. Descriptive statistics and multiple regression were the principal statistical tests employed using the panel data method.FindingsThe results of the direct effect tests reveal that board independence and industry-specialist auditors have no significant influence on financial reporting timeliness. Nevertheless, the results also show that the timeliness of financial reporting by listed companies in the UAE is influenced by the interaction effect between auditors' industry specialisation and the governance of firm boards. More specifically, the results reveal that financial reporting timeliness is positively associated with board independence for companies audited by industry-specialist auditors. This finding is consistent with the notion that industry-specialist auditors complement the role of effective board governance.Research limitations/implicationsThis study only focuses on secondary data from non-financial companies listed in the UAE markets. Therefore, the outcomes may not be generalisable to sectors related to finance. Future researchers are recommended to examine financial sectors and apply alternative measurements such as surveys or interviews with directorial boards and external auditors. Furthermore, this study used only one measure of industry-specialist auditors, while board governance was limited to board independence. Future studies could utilise different measurements for industry-specialist auditors and more board governance measures to obtain more robust findings.Practical implicationsThe evidence provided indicates that when a company listed in the UAE has a high-quality board, it benefits by engaging auditors who specialise in the industry in terms of improving the timeliness of financial reporting. The findings also indicate the need for closer monitoring of management to safeguard their reputation. This might attract the attention of the Big Four audit firms and industry–specialist auditors to continuously re-evaluate their audit work, professional training and staff skills, while they might also try to differentiate their performance and monitoring capabilities from the non-Big Four audit firms and non-industry specialist auditors.Originality/valueThe main contribution of this study to the overall body of research is the concept that having independent directors is associated with improved reporting timeliness because financial reports are monitored with greater efficiency by industry–specialist auditors. This study provides evidence for the interaction effect between internal and external governance mechanisms on financial reporting quality, which has not been the focus of prior studies on financial reporting quality.

show abstract

Royal Family Members and Corporate Governance Characteristics: The Impact on Earnings Management in UA

Cited by 2 publications

References 55 publications

Corporate Governance and Financial Reporting Quality: The Mediation Role of IFRS

Corporate Governance and Financial Reporting Quality: The Mediation Role of IFRS

The interaction effect of auditor industry specialisation and board governance on financial reporting timeliness: evidence from the UAE

Contact Info

Product

Resources

About