Corporate governance, audit quality and risk taking in the U.S. property casualty insurance industry

Voluntary certification and disclosure of internal controls over Australian financial reporting, audit fees and value relevance

Corporate governance, audit committee, and audit quality are important factors that can influence company performance. Good corporate governance can create an effective internal control system, increase transparency and maintain company accountability. The audit committee, as part of corporate governance, plays a role in overseeing the financial reporting process, evaluating the internal control system, and monitoring external audit performance. High audit quality can increase stakeholder confidence in the company's financial reports and provide guarantees for the accuracy and reliability of financial information. This research aims to analyze the influence of corporate governance, audit committee, and audit quality on company performance. Corporate governance variables are measured using corporate governance scores, while audit committee variables are evaluated based on the characteristics and effectiveness of the audit committee. Audit quality is assessed by the reputation and experience of the external auditor. Meanwhile, company performance is measured using financial ratios such as return on assets (ROA) and return on equity (ROE). This research uses data from companies listed on the Indonesia Stock Exchange (BEI) during a certain period. Data analysis was carried out using the multiple linear regression method to test the influence of independent variables on the dependent variable. It is hoped that the findings of this research will contribute to the development of corporate governance practices, audit committee management, and improvement of audit quality in Indonesia, as well as provide insight for companies in efforts to improve their financial and operational performance.

This study examines and presents models of the Influence of Good Corporate Governance , Profitability, Leverage and Audit Quality on the Implementation of Earnings Management in Manufacturing Companies Listed on the IDX for the 2015 – 2019 period. The purpose of this study is to determine the partial and simultaneous effect of variables Good Corporate Governance , Profitability, Leverage and Audit Quality on the implementation of earnings management in manufacturing companies listed on the IDX for the 2015-2019 period . The novelty of this study is the simultaneous influence of the four independent variables namely Good Corporate Governance , Profitability, Leverage and Audit Quality on the implementation of earnings management in manufacturing companies listed on the IDX for the 2015-2019 period. The type of research used is descriptive quantitative using multiple regression analysis as a technique for analyzing the research sample data. The results of this study are that there is a partial and simultaneous influence between the Good Corporate Governance , Profitability, Leverage and Audit Quality variables on the implementation of earnings management in manufacturing companies listed on the IDX for the 2015-2019 period. KEYWORDS: Good Corporate Governance , Profitability, Leverage , Audit Quality, Earnings Management

This study aims to analyze the effect of corporate governance and audit quality on trusted financial reports through financial distress. The analytical tool used in this study is the Structual Equation Model (SEM) with Partial Least Square (PLS), while the sample used in this study is 68 BUMN Holding business units in Indonesia. The research respondents were auditors who had experience in auditing BUMN Holdings. The results of the study show that corporate governance has a positive effect in encouraging the creation of trusted financial reports. Corporate governance has no significant effect in encouraging the creation of BUMN Holding financial distress in Indonesia. Audit quality has a positive effect in encouraging the creation of trusted financial reports. Audit quality has a positive effect on financial distress. Financial distress has a negative effect on trusted financial reports. This research provides insight into the field of financial risk management research. The insignificant relationship between corporate governance and financial distress is an important finding, because most previous studies have concluded that corporate governance variables have a direct effect on financial distress, both positive and negative. Given the complexity of the relationship between corporate governance and financial distress, more in-depth further research can be conducted to explain in more detail why this relationship is not significant. Qualitative approaches such as case studies, interviews or comparative analysis can be used to gain deeper insight into the context and mechanisms underlying these findings

Objective – The purpose of this research is to empirically examine how company characteristics, corporate governance and audit quality affect earnings management. Methodology/Technique – The population used for this research is manufacturing companies listed on the Indonesian Stock Exchange between 2013 and 2015. The sampling method used in this research is purposive sampling. 64 companies are examined, with 192 items of data being obtained. Findings – This research also uses statistical testing through a multiple regression. The results show that return on assets, financial leverage, free cash flow, and sales growth all have an influence on earnings management. Meanwhile, other variables such as managerial ownership, institutional ownership, board size, the presence of an audit committee, firm size, and audit quality have no significant effect on earnings management. Novelty – In this research, company characteristics are proxied with the return on assets, financial leverage, firm size, free cash flow, and sales growth, while corporate governance is proxied with managerial ownership, institutional ownership, board size, and the presence of an audit committee. Type of Paper: Empirical. Keywords: Company Characteristics; Corporate Governance; Audit Quality; Earnings Management; Agency Theory. Reference to this paper should be made as follows: Firnanti, F.; Pirzada, K.; Budiman. 2019. Company Characteristics, Corporate Governance, Audit Quality Impact on Earnings Management, Acc. Fin. Review 4 (2): 43 – 49 https://doi.org/10.35609/afr.2019.4.2(2) JEL Classification: M40, M41, M49.

Earnings management is of great concern to corporate stakeholders. While numerous studies have investigated the effects of various corporate governance and audit quality variables on earnings management, empirical evidence is rather inconsistent. This meta‐analysis identifies 12 significant relationships by integrating results from 48 prior studies. For corporate governance, the independence of the board of directors and its expertise have a negative relationship with earnings management. Similar negative relationships exist between earnings management and the audit committee's independence, its size, expertise, and the number of meetings. The audit committee's share ownership has a positive effect on earnings management. For audit quality, auditor tenure, auditor size, and specialization have a negative relationship with earnings management. Auditor independence, as measured by fee ratio and total fee, is also a deterrent to earnings management.

This study aims to examine the effect of Corporate Governance (CG) on tax avoidance. This research was conducted using manufacturing companies listed on the IDX in the 2015-2019 period. Total sample used was 179 companies with total of 498 observations. The sampling method used was purposive sampling and data was analysed with multiple linear regression. Tax avoidance as dependent variable is measured by Effectice Tax Rate. Independent variables used in this research are corporate governance and audit quality. Corporate Governance as independent variable is measured by the proportion of independent commissioners, institutional ownership, and audit committee. The result shows that the variable proportion of independent commissioners has a significant positive effect, institutional ownership has a significant negative effect, and the audit quality and audit committee variables have no significant effect on tax avoidance. 
 Keywords: Tax avoidance, Proportion of Independent Commisioners, Institutional Ownership, Audit Quality, Audit Committee, corporate governance

Earnings management is defined as earnings engineering activities / actions with certain objectives carried out by management. This research is expected to obtain empirical evidence of the influence of intellectual capital, corporate governance and audit quality in influencing earnings management in transportation companies and was listed on the Indonesia Stock Exchange in 2014-2018. Data was collected using a purposive sampling method and there were 14 companies that met the research criteria and carried out by testing the multiple linear regression hypothesis through the application of SPSS 23. In this study produced variables of intellectual capital, corporate governance and audit quality simultaneously have an influence on earnings management. While partially only intellectual capital variables that affect earnings management. Companies that are audited by large KAPs may not be able to limit the occurrence of earnings management actions. The large share ownership should be able to make the institutional control of operational activities, but the reality of institutional ownership is not able to limit the existence of earnings management. Theoretical implications expected from research are able to make intellectual capital as one indicator in measuring the occurrence of earnings management in future research. Keywords: Intellectual Capital; Institutional Ownership; Managerial Ownership; Audit Quality; Earnings Management

This study aims to examine the effect of good corporate governance and audit quality towards firm performance. In addition, this study also examines whether the effect of good corporate governance towards firm performance can be moderated by audit quality variables. Measurement of good corporate governance scores uses ASEAN CG Scorecard, while quality audits are proxied by audit fees and firm rotation audits. Firm performance variables are measured using Tobin's q, ROE, and ROA. The data used in this study is secondary data which is obtained from the annual report of manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2016. Data analysis method used in this study is multiple linear regression tests. The result shows that good corporate governance and audit quality which are proxied by audit fees has the effect towards the firm performance. This study also succeeded in proving that audit quality can moderate the effect of good corporate governance towards firm performance. Keywords: good corporate governance, audit quality, firm performance, ASEAN CG Scorecard

This study aims to investigate the relationship between corporate governance (CG) and audit quality (AQ) in the adequacy of the value relevance of accounting information (VRAI). The study sample included Iraqi firms listed on the Iraqi Stock Exchange (ISE) from 2010 to 2022. Nineteen firms were a research sample selected from 44 firms listed on the ISE. They chose to use the model (Ohlson, 1995) in measuring VRAI, which is based on measuring the absolute value of the level of value relevance to earnings per share (EPS) the absolute value of the book value suitability level VRAI. CG was measured through five factors: board size, gender of board members, independence of the board from the chief executive officer (CEO), ownership percentage of the majority shareholder, and institutional ownership: auditor tenure, audit fees, and audit firm size measured AQ. The study found that CG is associated with a negative and significant relationship with EPS, while AQ is associated with a positive and significant relationship with EPS. The study also found no relationship between CG, AQ, and VRAI as a proxy for the appropriate VRAI. The results also indicate the weak role of regulatory variables, which decreased the marginal slope coefficient results for the models used.

Agency Problems, Auditing, and the Theory of the Firm: Some EvidenceAuthor(s): Ross L. Watts and Jerold L. ZimmermanSource: Journal of Law and Economics, Vol. 26, No. 3, (Oct., 1983), pp. 613-633Published by: The University of Chicago PressStable URL: http://www.jstor.org/stable/725039Accessed: 29/06/2008 23:14

The issue of corporate governance has been a focus among researchers after the 1997/98 financial crisis. Many countries have implemented codes and guidelines of corporate governance to promote effective boards overseeing the operations of companies. In the case of Shari’ah compliant companies, boards still play a significant role and are responsible to ensure Shari’ah compliance. This paper reemphasises the conceptual relation between corporate governance mechanisms and audit quality. The corporate governance mechanisms are measured by board size, CEO duality, independent directors, financial experts on the audit committee, and the existence of an internal Shari’ah<em> </em>committee. There are numerous methods to measure audit quality including using audit fee and auditor reputation as proxies. The findings are mixed. This means that there is no consistent relationship between good corporate governance mechanisms and audit quality.

This study aims to analyze the impact of corporate governance on Tax Avoidance in Indonesian companies. Good Corporate Governance is believed to be able to minimize Tax Avoidance practices that are detrimental to the state and create a more transparent and accountable business climate. In this study, data were obtained from industrial sector companies listed on the Indonesia Stock Exchange (IDX) 2021-2023. The method used is regression analysis with a quantitative approach to test the relationship between various corporate governance variables, such as Independent Commissioners, Institutional Ownership, Audit Committees, and Audit Quality, with the level of Tax Avoidance carried out by companies. The results of the study indicate that there is a significant influence between the quality of corporate governance and Tax Avoidance. Companies with higher levels of transparency and better governance tend to have lower levels of Tax Avoidance. Conversely, companies with poor governance are more susceptible to Tax Avoidance practices. This study contributes to the understanding of how the implementation of good governance can reduce Tax Avoidance, as well as provide implications for tax policy and ethical business practices in Indonesia.

PurposeThis study is motivated by the competing views on whether internal governance mechanisms complement or substitute for external auditing, and how this association is affected by ownership concentration. The complementary view predicts that good internal governance mechanisms are related to high-quality audit. On the other hand, corporate governance mechanisms may be substituted for each other, so more investment in governance mechanisms leads to less investment in external auditing. Therefore, this study aims to examine the association between internal governance mechanisms and the demand for audit quality.Design/methodology/approachData from Malaysian listed companies during the period 2009 to 2012 are used. Ordinary least square (OLS) regression is applied to analyse the data.FindingsCompanies with a higher concentration of ownership are less likely to demand extensive auditing. In addition, the study provides supporting evidence for the complementary association between a company’s governance and audit fees. However, the ownership concentration plays a minor role in the positive association between internal corporate governance and audit quality. Further tests are conducted and support the main findings.Practical implicationsSignificant implications are provided for the audit profession in emerging economies, where concentrated ownership is common, to help policymakers and regulators in determining the power of controlling shareholders on audit quality and firm’s governance. The study’s findings open up avenues for further research.Originality/valueThis is the first work to address the role of ownership concentration in the association between corporate governance and audit quality; it suggests that the ownership structure must be considered in examining the effectiveness of corporate governance. The study also provides a comprehensive combination of internal governance mechanisms.

The aim of this research is to determine the influence of independence, corporate governance and audit quality on the integrity of financial reports in manufacturing companies listed on the IDX partially. The research was conducted based on quantitative methods. Determining the research sample used a purposive sampling method so that a research sample of 6 Food and Beverage Sub-sector manufacturing companies registered on the IDX was obtained. This research data uses manufacturing company financial reports for the 2018-2022 period. The data analysis method used is multiple linear regression. The research results prove that independence has a significant effect on the integrity of financial reports in manufacturing companies with t = 3.542, corporate governance has a significant effect on the integrity of financial reports in manufacturing companies with t = 6.750 and audit quality has a significant effect on the integrity of financial reports in manufacturing companies with t count = 5,733. From the results of this research, it can be understood that independence, corporate governance and audit quality play an important role in improving the integrity of financial reports.