The Role of the Audit Committee as a Corporate Governance Mechanism: The Case of the Banking Sector in Libya

Masli, Abdulhakim M.

doi:10.2139/ssrn.3906663

Cited by 3 publications

(1 citation statement)

References 320 publications

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“…The Asian Financial Crisis in 1997 caused the global economy to collapse, especially in countries such as South East Asia, Korea, and Japan ( Saltaji, 2018 ). It caused a series of high-profile accounting and financial scandals, fraudulent activities, and deliberate manipulations of financial statements, which led to the collapse of corporations such as Enron, WorldCom, and Satyam Computers Limited ( Prusa, 2016 ; Al-Dhamari et al, 2018 ; Masli, 2018 ).…”

Section: Introductionmentioning

confidence: 99%

An Exploratory Study on Corporate Governance From Neuro-Governance Lenses in the Malaysian Context

et al. 2022

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Our minds are powerful, creative, forceful, and strong, controlling our thinking and behaviors. A series of high-profile accounting and financial scandals have been revealed in the past few decades, and the Enron case was the most representative of them all. Corporate decision-makers have traditionally enjoyed high remunerations, compensations, and social status. Hence, the underlying rationales and motivation drivers that motivate managers to conduct unethical behaviors have always been a heightened concern. This research aims to delineate the narratives of corporate governance misconducts and the underlying rationales of these unethical behaviors. This study incorporates independent variables of neuro-accounting, neuroeconomics, neuro-ethics, and human nature using a qualitative methodology. From this study, the social norm of fairness showed that the human nature of greed and selfishness would motivate corporate decision-makers to engage in any exchange that could benefit themselves, although it is unethical and illegal. Second, neuroeconomics revealed that scarcity of economic resources, level of risks and uncertainties, and expected rewards could be the factors that motivate managers to conduct unethical behaviors, especially when their remunerations are tightly linked to company performances. Third, neuro-ethics shows that managers who lack moral values, have unstable emotions, and possess negative moral intuitions or personal assumptions could be more likely to pursue their interests at the cost of others. Lastly, neuro-governance also proved that self-benefits and financial incentives will usually be the priority and would be a motivating factor for misconduct.

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Section: Introductionmentioning

confidence: 99%

An Exploratory Study on Corporate Governance From Neuro-Governance Lenses in the Malaysian Context

et al. 2022

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Stakeholder perception of the determinants of audit committee effectiveness in a developing economy: evidence from the Libyan banking sector

Masli

Mangena

Gerged

et al. 2021

JAEE

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PurposeThis study distinctively explores the firm-level and national-level determinants of audit committee effectiveness (ACE) in the Libyan banking sector (LBS).Design/methodology/approachA mixed-methods approach has been employed to enhance the quality of the collected data and reduce the risk of bias. Five groups of actors in the Libyan banking sector were surveyed, including board members, AC members, executive managers, internal auditors and external auditors, further to interviewing a representative sample of these groups. In total, 218 survey responses were gathered, and 20 semi-structured interviews were conducted.FindingsThe study results show that AC authority, financial expertise and diligence are positively and significantly attributed to ACE, although AC independence and resources are not significantly related to ACE. The authors find that the legal and regulatory environment, government intervention, and the accounting and auditing environment are perceived as important and associated with ACE regarding national-level factors. These findings are strongly supported by semi-structured interviews and suggest that both firm-level and national-level factors are essential in understanding ACE in Libya's banking sector.Research limitations/implicationsThe study’s evidence reiterates the vital need for more concentrated work to integrate governance, legislative and regulatory reforms to ensure the effectiveness of ACs as a key corporate governance (CG) mechanism in developing economies.Originality/valueThis study extends the literature relating measures of AC inputs and outputs by examining the perception of stakeholders to understand both the firm-level and national-level factors that affect ACE in a single institutional setting. Additionally, this work adds to the limited number of recent studies examining the role of ACs in the banking sector in developing economies.

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The Role of Audit Committee in Enhancing External Audit during COVID-19 Pandemic to Meet Stakeholders’ Needs

Ma'aji

2022

JAFESS

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In addition to being a significant business interrupter for many entities, the impact of the COVID-19 pandemic has created significant financial reporting implications for many companies around the globe. This paper is conceptual in nature and seeks to gain a better understanding of the effectiveness of audit committee in enhancing external audit quality to meeting stakeholders need, especially during the period of COVID-19 pandemic and provides key areas for audit committees oversight duties during challenging time caused by the pandemic. The last decade has been rich in academic insights on how audit committee can enhance the effectiveness of external audit in meeting stakeholders needs. Our paper offers a review of the related literature on this topic and discusses the main attributes that would be needed in enhancing the role of audit committee during challenging times caused by external factors such as the COVID-19 pandemic. This review is organized around three major issues, identified in relation to COVID-19 effects on corporate reporting, audit committees and stakeholders needs in the time of pandemic and the role of audit committees in enhancing external audit at the time of COVID-19 pandemic. This paper has implication for company’s audit committee, board of directors, accounting firms and academician on how audit committee roles can enhance external audit during COVID-19 pandemic to meet stakeholders’ needs. Keywords: Audit committee; COVID-19; External audit; Stakeholders need

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The Role of the Audit Committee as a Corporate Governance Mechanism: The Case of the Banking Sector in Libya

Cited by 3 publications

References 320 publications

An Exploratory Study on Corporate Governance From Neuro-Governance Lenses in the Malaysian Context

An Exploratory Study on Corporate Governance From Neuro-Governance Lenses in the Malaysian Context

Stakeholder perception of the determinants of audit committee effectiveness in a developing economy: evidence from the Libyan banking sector

The Role of Audit Committee in Enhancing External Audit during COVID-19 Pandemic to Meet Stakeholders’ Needs

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