Download or read book The Effect of Board Characteristics and Audit Committee Existence on Earnings Quality of Indonesian State Owned Enterprises written by Ancella Anitawati Hermawan and published by . This book was released on 2014 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: The objective of this research is to determine the effect of Board of Commissioners characteristics which is assessed by number or size of, level of independence of, and amount of remuneration received by the Board of Commissioners on earning's quality of Indonesia's State-Owned Enterprises (“SOE”). The objective of this research is also to determine whether the existence of Audit Comittee has significant effect on the earnings quality of the SOE. Hypotheses testing are done by using a multiple regression model with 111 sample of State-Owned Enterprises whose majority share is owned by the state during 2009 dan 2010. The results provide empirical evidence that independency of Board of Commissioners increases the SOE earnings quality, meanwhile the other Board characteristics and the existence of Audit Committee has no significant effect on the SOE earnings quality.
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 Characteristics of a Classified Board and the Effects of the Board on Earnings Quality Accounting Conservatism and Credit Risk written by SangHyun Suh and published by . This book was released on 2009 with total page 129 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate governance studies document that strong corporate governance brings positive effects to firms; there are two different arguments about the effects of a classified board in which shareholders can change only one third of board members per year. That is, a classified board can decrease firm value by lowering the level of accountability to shareholder and investors or increase firm value by increasing board independence and focusing more on long-term planning. This study examines the characteristics of firms with a classified board and the effects of a classified board on earnings quality, accounting conservatism, and credit risk. It documents that classified board firms have both strong and weak governance characteristics. That is, firms with classified boards tend to have a larger board size, a lower percentage of insider directors on the board, a lower outside director ownership, and more operational complexity. This study finds that the market perceives classified board firms as having higher earnings quality than unitary board firms although there is no difference in accrual earnings quality, and there is no difference in accounting conservatism. However, classified board firms have higher credit ratings than unitary board firms. This study shows that there are no changes in earnings quality or credit risk when a firm changes its board structure either from unitary to classified or from classified to unitary. The study also finds that there is a decrease in accounting conservatism when a firm changes its board structure from classified to unitary, but that when a firm changes its board structure from a unitary to a classified, there is no accounting conservatism change with the accrual measure, but that the accounting conservatism increases under the market approach. These results seem to challenge the argument that a higher level of accountability to shareholders and investors results from a unitary board. Overall, the evidence is more consistent with the arguments in favor of a classified board. It also appears that the market puts more weight on the positive effects of classified boards than on the negative effects, although some active shareholders and investors argue for declassification of classified board and emphasize that a higher level of accountability should follow. Of course, a classified board can have negative effects on corporate governance, such as increased shirking, empire-building, and enjoying private benefits at shareholders cost. However, the board can also provide positive corporate governance effects such as the avoidance of inefficient actions, and more efficient investments in long-term projects. Therefore, it appears that, as Koppes et al. (1999) mention, attention should not be focused on the existence of a classified board, but on the effectiveness of the board, and that a classified board is not necessarily inconsistent with good corporate governance. It also should not be expected that a one-size-fits-all approach to corporate governance mechanism would enhance every firm's performance and firm value (Coles et al., 2008).
Download or read book Effects of the Audit Committee and the Fiscal Council on Earnings Quality in Brazil written by Vitor Baioco and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study evaluates the effects of the audit committee and the fiscal council with their different characteristics on earnings quality in Brazil. The proxies of earnings quality used are: relevance of accounting information, timeliness, and conditional conservatism. The sample consists of Brazilian companies listed on the Brazilian Securities, Commodities, and Futures Exchange (BM&FBOVESPA) with annual liquidity above 0.001 within the period from 2010 to 2013. Data were collected from the database Comdinheiro and the Reference Forms of companies available on the website of the Brazilian Securities and Exchange Commission (CVM) or the BM&FBOVESPA. The samples used in the study totaled 718, 688, and 722 observations for the value relevance, timeliness, and conditional conservatism models, respectively. The results indicate that different arrangements of the fiscal council and the existence of the audit committee differently impact the accounting information properties. The presence of the fiscal council positively impacted the relevance of equity, while the presence of the audit committee, the relevance of earnings. Conditional conservatism is evidenced in the group of companies with a permanent fiscal council, demonstrating that it is significant as a governance mechanism, rather than the installation for temporary operation when asked by shareholders in an ordinary general meeting. The presence of both showed significant earnings for the market, but they were not timely, something which exposes restriction to the relevance found. Lastly, the powered fiscal council showed a positive association only concerning the relevance of equity.
Download or read book The Audit Committee Handbook written by Louis Braiotta, Jr. and published by Wiley. This book was released on 2010-03-22 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Audit Committee Handbook, Fifth Edition The Audit Committee Handbook, Fifth Edition guides you to: Understand the role and responsibilities of the audit committee with a general update and reality check on auditing cycle activities Identify the developments that impact audit committee practices and the most current techniques and strategies for committee meetings Develop a repertoire of effective strategies to help the board of directors discharge its fiduciary responsibility to shareholders Prepare a periodic assessment of professional development activities and an informed review of both audit processes and financial reporting processes A must-have for all audit committee members, board directors, corporate secretaries, CEOs, CFOs, and auditors involved in the accounting practices of their firms, The Audit Committee Handbook, Fifth Edition is the most authoritative work on audit committees in the marketplace.
Download or read book Boards of Directors Audit Committees and the Information Content of Earnings written by Kirsten L. Anderson and published by . This book was released on 2003 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the relation between the information content of earnings (earnings response coefficients) and board and audit committee structure for a broad sample of more than 1,200 firms during 2001. We find that earnings are more informative the greater is the independence and the activity of the full board. Moreover, firms that have separated the CEO and board Chair positions appear to have more informative earnings. We also find that audit committee characteristics influence the information content of earnings. In particular, firms that have smaller audit committees have more informative earnings. However, we find that audit committee independence incremental to the independence of the full board is unrelated to the information content of earnings.
Download or read book The Relationship Between Board Characteristics and Voluntary Improvements in Audit Committee Composition and Experience written by Mark S. Beasley and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study empirically examines the relation between certain board of director characteristics and the extent that audit committee composition voluntarily exceeds minimum mandated levels and includes outside directors with financial reporting and audit committee knowledge and experience. This study focuses on board characteristics as the board directly controls audit committee membership. Such staffing decisions can directly affect the ability of the audit committee to monitor management's financial reporting process on behalf of the board. Results suggests that Canadian firms which voluntarily include more outside directors on the audit committee than the mandated minimum have larger boards with more outsiders serving on those boards and are more likely to segregate the board chairperson position from the CEO/president positions. Additionally, firms who voluntarily create audit committees composed of outsider members with a breadth of relevant financial reporting and audit committee knowledge and experience have boards that are larger, have more outside members, and are less likely to be chaired by the CEO/president. Implications of these findings for auditors, institutional investors, regulators and other interested parties are discussed.
Download or read book The Association Between Board Characteristics and Earnings Quality written by Redhwan Al-dhamari and published by . This book was released on 2015 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the relationship between board characteristics and earnings quality after the Malaysian Code on Corporate Governance was amended in 2007. It uses heteroskedasticity-corrected least square regressions upon a sample of Malaysian firms listed in 2008 and 2009. We find that the quality of earnings is higher for firms with independent chairmen than those with non-independent chairmen. However, in contradiction to our expectation are inconclusive results on board independence. The results also demonstrate that investors do not perceive board size as a good indicator of quality earnings. These findings imply that investors still have reservations about the ability of boards to enhance the quality of earnings, although there have been efforts to reform corporate governance following the Asian financial crisis. This study serves as a signal to policy makers to evaluate the importance of board mechanisms in enhancing financial reporting quality in emerging markets.
Download or read book Good Corporate Governance Mechanism Size Managerial Ownership Structure and Leverage at Earning Management in Indonesian Public s Banking written by Rowland Bismark Pasaribu and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate Social Responsibility Disclosure in Manufacture Public Companies at Indonesian Stock Exchange. This research aimed at knowing the influence of audit quality, proportion of independent commissioner, audit committee, firm size, managerial ownership and leverage. It used purposive sampling technique or choosing samples based on certain criteria. The sample of this research was 25 companies of banking industry in Indonesia stock exchange period 2008-2012. The result shows that (1) all independent variables simultaneously has influence on earnings management; (2) however partially audit committee, audit quality, managerial ownership and leverage do not affect significantly to earnings management; (3) only firm size and independent commissioner that affect significantly to earning management.
Download or read book The Audit Committee Performing Corporate Governance written by Laura F. Spira and published by Springer Science & Business Media. This book was released on 2007-05-08 with total page 191 pages. Available in PDF, EPUB and Kindle. Book excerpt: Why do we need to understand audit committees? The Cadbury Committee recommended that UK companies should adopt them in response to financial scandals that have stemmed from dubious financial reporting practices. In other countries, similar commissions have made similar recommendations and audit committees are now a common institution. However, many practitioners doubt whether an audit committee really does much to ensure the integrity of a firm's financial statements because, as outsiders, members don't know enough to dig deeply beneath the numbers. The Audit Committee: Performing Corporate Governance argues that such criticism overlooks the ceremonial function of these committees. The audit committee is an arena where members can form and strengthen shifting and fragmentary networks with each other and with the external auditors. Within these networks, both consensus and independence are demonstrated, generating comfort, which legitimises the company and maintains its access to external sources of capital. The audit committee is a key part of the corporate governance structure within an organisation. Many in the UK have been patched together to meet regulatory requirements and their operation is poorly understood because few people other than their members have access to their deliberations. In this account of the world of audit committees the practitioner will find the ethnographical perspectives on ceremonial performance, consensus, independence, and comfort both familiar and different. It's like looking at a photograph of something commonplace from an unusual angle or through a strange-shaped lens.
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 Corporate Governance of State Owned Enterprises written by World Bank Publications and published by World Bank Publications. This book was released on 2014-10-02 with total page 391 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Toolkit provides an overall framework with practical tools and information to help policymakers design and implement corporate governance reforms for state-owned enterprises. It concludes with guidance on managing the reform process, in particular how to prioritize and sequence reforms, build capacity, and engage with stakeholders.
Download or read book Taking Risks written by Kenneth R. Maccrimmon and published by Simon and Schuster. This book was released on 1988-09-19 with total page 404 pages. Available in PDF, EPUB and Kindle. Book excerpt: Offers tests designed to measure one's willingness to take risks, describes characteristics associated with this quality, and discusses the importance of risk-taking in management and investment situations.
Download or read book Reforms Opportunities and Challenges for State Owned Enterprises written by Edimon Ginting and published by Asian Development Bank. This book was released on 2020-07-01 with total page 355 pages. Available in PDF, EPUB and Kindle. Book excerpt: State-owned enterprises (SOEs) play significant roles in developing economies in Asia and SOE performance remains crucial for economy-wide productivity and growth. This book looks at SOEs in Azerbaijan, Indonesia, Kazakhstan, the People's Republic of China, and Viet Nam, which together present a panoramic view of SOEs in the region. It also presents insights from the Republic of Korea on the evolving role of the public sector in various stages of development. It explores corporate governance challenges and how governments could reform SOEs to make them efficient drivers of the long-term productivity-induced growth essential to Asia's transition to high-income status.
Download or read book Corporate Governance in Asia written by Sang-Woo Nam and published by . This book was released on 2004 with total page 220 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Corporate Governance and Corporate Social Responsibility of Indian Companies written by Saumitra N. Bhaduri and published by Springer. This book was released on 2016-05-02 with total page 146 pages. Available in PDF, EPUB and Kindle. Book excerpt: The book explores the theoretical and empirical issues relating to the interaction between corporate governance and corporate social responsibility (CSR) activities undertaken by Indian companies. It presents a highly detailed view on the evolution of CSR and its nexus with corporate governance. This is particularly timely in the context of the recent Indian Companies Act 2013, which mandates corporate social responsibility and revises the best corporate-governance practices for large companies. The findings of this study are unique in drawing from a unified framework of Indian corporate governance structure and corporate engagement in CSR. The book’s scope is both academic and practical; the research methodology developed and utilized is useful for researchers, while the implications and the selection of variables provide useful information for practitioners and stakeholders. Finally, although it focuses on large Indian companies, the findings can also be applied to research on other emerging economies.
Download or read book Corporate Governance in Less Developed and Emerging Economies written by Matthew Tsamenyi and published by Emerald Group Publishing. This book was released on 2008-12-01 with total page 565 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate governance reform has become an important global policy agenda driven by events such as the 1997 Asian financial crisis, corporate scandals (such as Enron and WorldCom) and the globalisation of capital markets. This book advances debate on corporate governance, accountability and transparency in less developed and emerging economies.
