Download or read book Board Characteristics and External Audit Quality written by M. Rabah Gana and published by . This book was released on 2016 with total page 7 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, we examine the impact of directors' board on external audit quality over the period 2003-2007 for 96 Belgian listed companies on the Euronext Brussels Stock Exchange. We measure audit quality by using an index for that. To construct the index of audit quality IQAUD, we follow the approach of Depeors (2010). Five attributes are considered: Big4 auditor, co-auditor, Big4 auditor and co-audit, seniority of auditor and audit fees.The composition of the index IQAUD is determined by using the “step by step” method of Cronbach's alpha coefficient (Curt et al., 1997). This procedure allows finding a subset of items that must be as reliable as possible. The results of our regression model, using panel data, confirm that external audit quality and board characteristics (independence and diligence) are complementary mechanisms. However, we can't conclude to any significant relationship of audit quality with board dual structure and its size.

Download or read book Board Characteristics and Audit Fees written by Joseph V. Carcello and published by . This book was released on 2000 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the relationship between board characteristics and external audit fees for Fortune 1000 companies. Competing arguments exist regarding the possible relationship between board characteristics and fees.One view is that a more independent, diligent, and expert board would be more concerned with effectively discharging its monitoring role and would be more supportive of the external audit function. Such a board would be likely to insist on enhanced audit scope, thus increasing the audit fee. An alternative view is that a more independent, diligent, and expert board would reduce the auditor's assessment of control risk and would substitute some of its own monitoring for the monitoring of the auditor. This would reduce audit effort, thus decreasing the audit fee.Consistent with the first view, we find significant positive relationships between board independence, diligence, and expertise and audit fees. A more independent, diligent, and expert board does not appear to substitute for audit effort; rather, such a board may complement auditor oversight.These results add to the growing body of literature documenting a relationship between corporate governance mechanisms and various facets of the financial reporting and audit processes. In addition, the results add to our understanding of the determinants of audit fees.

Download or read book Corporate Governance Models and Applications in Developing Economies written by Agyemang, Otuo Serebour and published by IGI Global. This book was released on 2019-08-30 with total page 330 pages. Available in PDF, EPUB and Kindle. Book excerpt: Virtually all developing, transitioning, and emerging-market economies are faced with one pressing concern at the moment: how to establish the groundwork for long-term economic performance and competitiveness in a diverse market. However, without the existence of good corporate governance in these economies, small enterprise will cease to exist in developing countries. Corporate Governance Models and Applications in Developing Economies is a collection of innovative research that contributes to the better understanding of corporate governance models by documenting the structures, principles, tenets, case studies, and applications for the development of good business practices in developing economies. While highlighting topics including risk management, financial distress, and insider trading, this book is ideally designed for corporate managers, executives, economists, strategists, investors, shareholders, students, researchers, academicians, business professionals, and policymakers.

Download or read book Advances in Islamic Finance Marketing and Management written by Dilip Mutum and published by Emerald Group Publishing. This book was released on 2016-12-22 with total page 387 pages. Available in PDF, EPUB and Kindle. Book excerpt: Of interest to both academics and practitioners who assist in making Shariah-centric strategies, this work is particularly important as Asia holds a major percentage of Islamic assets in South Asia, Southeast Asia, and the Middle East, with new opportunities opening in Central Asia.

Download or read book Board Characteristics Audit Committee Independence and Auditor Fees written by Dr. Rajnish Kumar and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the effect of level of corporate governance measured in terms of the board of directors' and the audit committee's characteristics on auditor fees in the Indian corporate sector. In particular, we examine the effect of the board of directors' and the audit committee's independence, diligence, expertise and size on audit fee, non-audit fee and the ratio of non-audit fee to audit fee for the top 100 companies listed on the National Stock Exchange for the financial year 2012-13. We hypothesize that an independent, diligent, experienced and a larger board of directors require higher audit quality and hence higher audit and non-audit fees. However, there is no effect of audit committee's characteristics (independence, diligence, expertise and size) on audit and non-audit fees because of inherent dependence of the audit committee on the board as envisioned by the Companies Act, 2013. The results indicate that an independent board defined as the proportion of independent directors in the board positively affects the audit fee and there is no effect of the audit committee's characteristics on auditor fees. Even after controlling for audit committee's characteristics in the board of directors' model, an independent board and chairperson positively affect the auditor fees.

Download or read book Board of Directors Audit Quality and Firm Performance written by Masood Fooladi and published by . This book was released on 2013 with total page 10 pages. Available in PDF, EPUB and Kindle. Book excerpt: From the agency theory perspective, the importance of Corporate Governance (CG) is to mitigate the agency conflicts between managers and shareholders. In other words, CG as a mechanism aims to align management's goals with those of the stakeholders, which are to increase firm performance. Since, the value creation of CG can be measured through the firm performance; the aim of this study is to answer this question: ''is there any relationship between CG and firm performance?'' Therefore, three board characteristics that are of interest in this study include board independency, CEO duality, and board size. In addition, audit quality is considered as an external CG characteristic affecting firm performance. Based on a randomly selected sample of companies listed on Bursa Malaysia and applying the linear multiple regression as the underlying statistical tests, it is found that audit quality has a significantly positive relationship with firm performance as measured by Return on Asset (ROA) and Tobin's Q (TQ). In addition, we find that board independency and CEO duality have respectively positive and negative relationship with TQ. However, there is no significant relationship between board characteristics and ROA. We conclude that market participants considers board independency as an effective monitoring mechanism while in reality, it does not have any significant effect on return on assets invested in a firm.

Download or read book Board Characteristics Audit Committee Characteristics and Abnormal Accruals written by Michael E. Bradbury and published by . This book was released on 2005 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: Prior research examines the relation between board characteristics and financial reporting violations relating to fraud and earnings overstatement. This paper examines the relation between governance (as measured by board and audit committee characteristics) and accounting quality (as measured by abnormal accruals) where there is no a priori reason to suspect systematic management of earnings. We find both board size and audit committee independence are related to higher quality accounting (i.e., lower abnormal working capital accruals). Furthermore, the relation between audit committee independence and higher quality accounting exists only when the abnormal accruals are income increasing. This suggests that audit committees are effective in the financial reporting process by reducing the level of income increasing abnormal accruals. The results also indicate that audit committees are effective only when they comprise independent directors.

Download or read book The Relationship Between Governance Practices Audit Quality and Earnings Management written by Rohaida Basiruddin and published by . This book was released on 2011 with total page 302 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis examines two empirical studies. Firstly, it examines the relationship between corporate governance characteristics (relating to the size, composition of independent members, financial expertise and meeting frequency of boards of directors and audit committee) and audit quality. Secondly, the study investigates the effectiveness of corporate governance characteristics and higher quality auditors in constraining earnings management. There are three proxies of audit quality employed: audit fees, non-audit fees and industry specialist auditors. Based on data obtained from the FTSE 350 between 2005 and 2008, the first empirical findings suggest that independent non-executive directors on board demand an additional and extensive audit effort from the auditor in order to certify their monitoring function, resulting in an increase in the audit fees and the perceived audit quality. The results also indicate a positive relationship between independent board and non-audit fees, suggesting that independent board support the view that the joint provision of audit and non-audit services does not necessarily compromise auditor independence, but rather that it broadens the auditors? knowledge and improves audit judgement. The findings from the second empirical study suggest that higher quality auditors (which either charge higher audit fees or are industry specialist auditors) are likely to reduce earnings manipulation. However, no evidence suggests that NAS fees affect earnings management. In addition, the current study finds inconsistent results linking the corporate governance characteristics and opportunistic earnings. Overall, both findings are consistent with agency theory, which states that independent board and higher quality auditors are associated with effective monitoring, which in turn helps to improve the quality of financial reporting. The findings are of potential interest to policy makers, professionals and boards of directors, especially on issues relating to audit quality and the mandating of corporate governance practices.

Download or read book Evidence on the Relation Between Corporate Governance Characteristics and the Quality of Financial Reporting written by Arthur Levitt and published by . This book was released on with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Bottom Line written by Catalyst and published by Catalyst. This book was released on 2004 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study explores whether there is a demonstrable connection between gender diversity and organizational financial performance.

Download or read book Which Characteristics Determine a Perfect Board of Directors A Review of the Economic Literature written by Felix Pütz and published by GRIN Verlag. This book was released on 2021-09-10 with total page 8 pages. Available in PDF, EPUB and Kindle. Book excerpt: Academic Paper from the year 2020 in the subject Business economics - Business Management, Corporate Governance, grade: 1,3, Maastricht University, language: English, abstract: The board of directors is an important organizational institution, whose purpose is to reduce the agency problem inherited by the management of a firm. However, because of various accounting frauds and failures in corporate governance in the history of larger corporations, there is increasing public attention regarding the effectiveness of a board and how a perfect board should be designed to increase their oversight quality. Because of these many researchers investigated this topic. This paper reviews recent academic research regarding the characteristics of a perfect board of directors. Firstly, the paper analyses different board characteristics, then it investigates the importance of the composition and size of the audit committee.

Download or read book Corporate Governance at the Crossroads written by Marleen Willekens and published by Intersentia nv. This book was released on 2005 with total page 150 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book discusses the effectiveness of four traditional corporate governance mechanisms: board of directors, audit committee, internal control and audit, external audit) as monitoring and (to a lesser extent) entrepreneurial devices.

Download or read book Auditing as Independent Authentication written by Peter W. Wolnizer and published by Sydney University Press. This book was released on 2006 with total page 280 pages. Available in PDF, EPUB and Kindle. Book excerpt: During the 1960s and 1970s a remarkable series of books was produced by academic staff in the field of accounting at the University of Sydney. It was a period when academic research was largely analytical rather than empirically-based. For the most part, the interests of academics at Sydney were largely directed at questioning the status quo - either in the way accounting or auditing was practiced, or in the conventional wisdom expressed in textbooks of the time. The Sydney Accounting Classics series reflects the diversity of interests of the 'Sydney school' at that time. It also recognises the tremendous impact of the foundation professor of accounting, R.J. Chambers. This reprint series ensures that the ideas developed during this period remain available to new generations of scholars and researchers. The Sydney Accounting Classics series is an initiative of the Accounting Foundation, in association with Sydney University Press. Auditing as Independent Authentication: From the cover of the 1987 edition: 'This is a penetrating exposition of the role of auditing in controlling quality of the financial information on which any interested person may assess the performance and prospects of firms'.

Download or read book Does Board Independence Substitute for External Audit Quality Evidence from an Exogenous Regulatory Shock written by Pandej Chintrakarn and published by . This book was released on 2017 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: Exploiting the passage of the Sarbanes-Oxley Act (SOX) as an exogenous regulatory shock, we investigate whether board independence substitutes for external audit quality. Based on over 14,000 observation across 18 years, our difference-in-difference estimates show that firms forced to raise board independence are far less likely to employ a Big4 auditor. In particular, board independence lowers the propensity to use a Big4 auditor by about 38%. Firms with stronger board independence enjoy more effective governance and therefore do not need as much external audit quality as those with less effective governance do. Based on a natural experiment, our empirical strategy is far less vulnerable to endogeneity and is thus much more likely to show a causal effect, rather than merely an association.

Download or read book The Board of Directors and Audit Committee Guide to Fiduciary Responsibilities written by Sheila Moran and published by AMACOM. This book was released on 2013-07-21 with total page 244 pages. Available in PDF, EPUB and Kindle. Book excerpt: You took the highly coveted position on the board or audit committee--now it’s time to figure out what you’re doing. And with SEC scrutiny at an all-time high, there is little room for growing pains. Boards and audit committees can now be held liable for acts of fraud and other corporate malfeasance even if they had no knowledge of wrongdoing in the organization.But relax! This comprehensive and practical guide greatly simplifies complex corporate governance standards, while mitigating the risks involved in the arduous work and increasing dramatically the positive effect over the enterprise that motivated you to take the position you did. Inside these essential pages, discover 10 crucial steps every governing body should take, including:• Cultivate independence • Build a balanced team • Address stakeholder concerns • Approach risk proactively • Spearhead fraud deterrence initiatives • And moreYou should be commended for taking on the duties you have, not intimidated. With this invaluable resource by your side, you can learn how best to satisfy the requirements of board service while also protecting yourself, the other board members, and the organization you have committed to lead to success.

Download or read book Audit Committee Characteristics Trust and Audit Quality written by Kwok Yip Cheung and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Board Directors and Corporate Social Responsibility written by S. Boubaker and published by Springer. This book was released on 2012-11-14 with total page 504 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume introduces readers to recent developments in the fields of board of directors and corporate social responsibility. It also provides new insights and perspectives on corporate governance practices in different countries.