Board Audit Committee Research Articles

The nexus between board audit committee attributes and financial performance of firms in Africa

This research aims to study the connection between the features of board audit committee of a firm and its financial performance in Africa, by looking at the board audit committees’ characteristics of publicly traded companies in the four (4) biggest African financial markets. This research conducted an empirical analysis of the committee features in the years following the global financial crisis and before the COVID-19 pandemic outbreak. The data covered the period between 2013 and 2019. We analyzed the data using correlation analysis, GLS (Fixed and Random Effect Models), and GMM. We used features of the committee as explanatory variables. These include an independent outside director as the chairperson of the committee, whether the committee guards the integrity of the financial reporting of a firm, whether the committee regularly meets and hears the recommendations and complaints of the firm’s external auditor, and whether the committee effectively monitors the management of the firm. Furthermore, for the dependent variable; ROE and ROA were utilized as the metrics of the financial performance of a firm. The results exhibit positive and significant relations between the board audit committee features such as; effective monitoring of management, guarding the integrity of financial reporting, an independent director as chairperson of the committee, regularly meeting and hearing the recommendations and complaints of the external auditor, and the firm’s financial performance measures. The findings are useful to corporate governance regulators who are seeking to improve corporate governance guidelines and minimize the corporate insolvency of firms in Africa.

Bank liquidity risk management through stable and volatile markets: The role of the asset-liability committee and lessons learned for the balance sheet governance operating model

This study examines the balance sheet management governance operating model of selected failed banks from 2007, 2008, 2009 and 2023, with emphasis on the corporate governance structure in place and the position of the asset-liability committee (ALCO), and draws conclusions and recommendations for future policy. All failed sample banks exhibited near-identical governance frameworks for management and oversight of balance sheet risk: namely an ALCO that reported to the senior executive management committee, and was at least two levels, if not three levels, below board level. It is inferred that, as the ultimate responsible and accountable forum for ensuring balance sheet viability and continuing going concern of the bank, the board would benefit from being closer to the balance sheet risk management process. This implies changing the governance structure such that the ALCO is closer to the board itself, and able to provide direct comfort to the board that the bank's capital and liquidity risks are being managed appropriately. The following bank governance measures are recommended, to be imposed by regulatory fiat if necessary: •Direct delegated authority of the ALCO to manage the balance sheet, from a long-term robustness and viability perspective, directly on behalf of the board. •The ALCO to report directly to the board, rather than via the executive management committee (or as an alternative approach, changed to become a sub-committee of the board). This recognises that the asset-liability management (ALM) discipline is at least as important as, if not more important than, the ‘audit’ oversight function undertaken by the board audit committee. •Technical expertise at ALCO and board level that is capable of discerning the genuine capital and liquidity risk exposure position of the bank, on a medium-term forward-looking basis, at all times.

Evaluation of Factors Contributing to the Effectiveness of Internal Audit Quality in Pakistani Commercial Banks

The Pakistani banking sectors facing numerous challenges because of poor internal audit quality. Internal audit quality has long been a source of contention. The current study examines the factors that affect internal audit quality in Pakistani commercial banks. Internal audit quality evaluated through potential factors such as competence, objectivity, performance, board audit committee support, and independence. Along with these factors, a questionnaire designed to determine the nature of the problems confronting Pakistani commercial banks. 102 questionnaires disseminated among the chief internal auditor, chief financial officer, board audit committee, and managers of 26 listed commercial banks. The impact of the factors on internal audit quality investigated using a binary logit regression model and multiple correspondence analyses. Findings show that performance, competence, and objectivity factors are statistically positively significant that influenced internal audit quality to improve it. This research helps improve the internal audit quality in Pakistani commercial banks.

Involve audit committees in annual reports process sooner than later

Nonprofits often task their board's audit committee with reviewing the annual reports prepared by third party auditors and recommending that the board approve or disapprove the draft reports. But according to Michael Gellman of Sustainability Education 4 Nonprofits, these committees can be much more impactful by getting involved at the front end of the auditing process—and even earlier than that.

PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP PENGUNGKAPAN ENTERPRISE RISK MANAGEMENT PADA PERUSAHAAN TELEKOMUNIKASI

This research aimed to find out, examine, and analyze the effect of the commissionaires’boardsize,independent commissionaires’board, audit committee, and institution ownership structure on the disclosure of management risk at the Telecommunication companies listed on the Indonesia Stock Exchange(IDX).The population was Telecommunication companies listed on the Indonesia Stock Exchange (IDX) from 2017 up to 2021, consisting of 11 companies. Furthermore,the data collection technique used non-probability sampling, in which all the members of the population were the sample. Moreover, the data analysis technique used multiple linear regression analysis with SPSS (Statistical Product and Service Solution) 25. The research result showed that the independent commissionaires’ board,audit committee, and institution ownership structure had a positive and significant effect on the disclosure of management risk at the Telecommunication companies listed on the Indonesia Stock Exchange 2017 - 2021. On the other hand,commissionaires ’board size had a negative and insignificant effect on the disclosure of management risk at the Telecommunication companies listed on the Indonesia Stock Exchange 2017-2021.
 
 Keywords: Commissionaires’ Board Size, Independent Commissionaires’ Board Audit Committee, Institution Ownership Structure, Disclosure of Management Risk

Does audit committee matter? Evidence from Tanzanian listed firms.

Aim: The primary role of audit committees is to provide oversight in the financial reporting, audit process, internal controls and in compliance with regulations and laws. The objective of this paper is to investigate the impact of board audit committees attributes on firm performance. Design/Research methods: Using a sample of firms publicly traded on the Dar es Salaam Stock Exchange (DSE) during 1998–2018; this paper estimated fixed effects regressions to tests the hypotheses developed. Conclusions/findings: The results show that audit committee attributes are positively linked with firm financial performance. Specifically, the findings reveal that audit committee attributes as measured by audit committee meetings, existence of audit committees, audit committee size and audit committee independence have positive impact on corporate performance as measured by return on sales (ROS) and profitability. These findings confirmed that firms having audit committees performed better than those without audit committees. Originality/value of the article: There is scarce research which examines the link between audit committees and firm performance in developing countries. To date, there is no study that has investigated the relationship between audit committee characteristics and firm performance in Tanzania. This paper provides new evidence on the relationship between audit committee attributes and firm performance in Tanzanian environment. Implications of the research: Overall, the findings recommend existence of large independent audit committees which conducts their meetings regularly as it is ideally enhances firm financial performance. Keywords: Audit committee attributes, corporate governance, firm performance, Tanzania JEL: G3, N27

FACTORS AFFECTING FINANCIAL PERFORMANCE IN THE INFRASTRUCTURE INDUSTRY IN INDONESIA

The company needs good governance in order for management to function properly and increase its performance. The separation of execution and oversight is an important characteristic of good governance. The aim of the research is to see if independent commissioners, CEO duality, committee size of committee audit, financial expertise on the audit committee board, and connection of political have an impact on business performance in infrastructure public companies in Indonesia during 2016 to 2020. Secondary data was used with 83 sample. The regression analysis used in this study was done using the SPSS version 25 application. The findings demonstrate that the audit committee size has a huge and beneficial impact on corporate performance. However, the independent board of commissioners, CEO duality, financial expertise on the audit committee, and political connections have no significance. The findings of the study indicate that the audit committees of Indonesian infrastructure corporations should be enhanced to compensate for the deficiencies of other governance elements.

FACTORS AFFECTING FINANCIAL PERFORMANCE IN THE INFRASTRUCTURE INDUSTRY IN INDONESIA

The company needs good governance in order for management to function properly and increase its performance. The separation of execution and oversight is an important characteristic of good governance. The aim of the research is to see if independent commissioners, CEO duality, committee size of committee audit, financial expertise on the audit committee board, and connection of political have an impact on business performance in infrastructure public companies in Indonesia during 2016 to 2020. Secondary data was used with 83 sample. The regression analysis used in this study was done using the SPSS version 25 application. The findings demonstrate that the audit committee size has a huge and beneficial impact on corporate performance. However, the independent board of commissioners, CEO duality, financial expertise on the audit committee, and political connections have no significance. The findings of the study indicate that the audit committees of Indonesian infrastructure corporations should be enhanced to compensate for the deficiencies of other governance elements.

Factors Affecting The Level of Corporate Resilience as The Impact of The Covid-19 Pandemic in Indonesia

This study aims to provide empirical evidence on the impact of corporate social responsibility, corporate governance, sales growth, and corporate size on corporate resilience. The purposive sampling technique obtained a sample of 44 companies registered in IDX80 as of February 2020. This study uses corporate quantitative methods with secondary data from sustainability reports and annual reports published by each corporate through the website www.idx.co.id or its official website. Data analysis in this study uses multiple linear regression analysis with IBM SPSS 25 software. The findings of this study are that partially, CSR on the topic of Environment has no significant effect on corporate resilience, but the topic of Economics and Social affect corporate resilience significantly. Corporate governance on the board of commissioners and directors has no significant effect on corporate resilience, but the board of audit committee significantly affects corporate resilience. Sales growth and corporate size significantly affect the corporate's resilience. Then, CSR, corporate governance, sales growth, and corporate size significantly affect the corporate's resilience.

Pengaruh Gender Terhadap Kualitas Laporan Keuangan Pada Perusahaan Manufaktur Terdaftar Di Bursa Efek Indonesia

The purpose of this study is to examine the effect of gender equality on the quality of financial statements as a proxy for the auditor's opinion. This research is a quantitative associative study with units of analysis of audited financial statements and independent auditor reports issued by KAP. This study used secondary data, data analysis techniques used logistic regression with SPPS version 26 software. The sample selection used a purposive sampling method. The results of the study show that the board of committees and the board of directors have no influence on the quality of financial reports. The gender equality variable represented by the audit committee board is proven to have no effect on the quality of the financial statements as a proxy for the auditor's opinion. This means that the availability or unavailability of women on the audit committee board does not affect the opinion that will be issued by the auditor. The gender equality variable represented by the board of directors has proven to have no effect on the quality of the financial statements as proxied by the auditor's opinion. This means that the availability or unavailability of women on the board of directors does not affect the opinion that will be issued by the auditor.

THE NEXUS BETWEEN CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE OF LISTED INDUSTRIAL GOODS COMPANIES IN NIGERIA

This study examines the nexus between corporate governance and the financial performance of listed industrial goods companies in Nigeria. The study adopted ex-post facto research design using secondary data derived from the audited financial statement of ten (10) companies from 2012-2021. The study concluded that there is a strong positive correlation between the board structure of listed firms in Nigeria and their financial stability particularly when performance is measured using tobin’s q or return on equity metrics. Board audit committee have the greatest positive effects while board equity interest has a detrimental but minor impact. The study recommended that nation’s producers of industrial goods should set up a review procedure that would support steadily increasing performance, ensuring that the board structure's architecture is flexible enough to withstand the text of time. Companies should build systems to regularly monitor the percentage of the board’s equity interest in relation to the total number of exiting firms share.

EFFECT OF CORPORATE GOVERNANCE ON ASSET QUALITY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

This study examined effect of corporate governance on asset quality of listed deposit money banks in Nigeria. The specific objectives of the study were to investigate effect of board independence on asset quality of deposit money banks in Nigeria, examine effect of board audit committee financial expertise on asset quality of deposit money banks in Nigeria and evaluate effect of board ownership concentration on asset quality of deposit money banks in Nigeria. The longitudinal research design was adopted in the study. Data were collected for the period 2012 to 2019 from financial statements of 14 listed deposit money banks and analyzed using the random effects regression after conducting descriptive statistics, Pearson correlations, heteroskedasticity and Hausman specification tests. Findings reveal that while board independence had significant effect on asset quality, board audit committee financial expertise and board ownership concentration had insignificant effects on asset quality of quoted deposit money banks in Nigeria for the period under study. It was recommended that deposit money banks equalize the number of executive and non-executive directors on their boards in order to increase the assets quality. Thus both executive and non-executive directors who have experience and are knowledgeable in accounting and finance in their boards to increase their assets quality, and encourage high block holding in their firms to enhance the assets quality.

CORPORATE GOVERNANCE AND ORGANIZATIONAL PERFORMANCE OF KENYA FOREST SERVICE IN NAIROBI CITY COUNTY

Purpose: The objective was to determine the effect of corporate governance and organizational performance of Kenya forest service in Nairobi City County
 Methodology: The survey adopted stratified sampling and employed questionnaires to collect data from a sample of 166 managerial level staff working at the Kenya Forest Service (KFS) Headquarters’ Office at Karura in Nairobi City County. Descriptive and inferential statistical models were employed to analyze, describe, and infer deduction and conclusion from the research findings. Correlation matrix and regressions models were employed to analyze data collected, and describe the research findings in reference to the variables under examination.
 Findings: The study findings showed that board composition, board independence, board size and board audit committee have an advantageous and significant influence on the iperformance of an organization.
 Unique contribution to Theory, Practice and Policy: The study recommends that, qthe qKFS qmanagement should qensure more qboard members are qappointed externally to enhance board efficiency and organization iperformance. Additionally, KFS management should increase the number of board members with non-executive status to increase board independence within the organization. The survey findings established that, small boards are preferable to large boards in influencing organization iperformance positively. The study recommends that, sKFS management should design an effective system to identify its ideal board size to promote iperformance.

Gender Diversity and Firm Value of Listed Deposit Money Banks in Nigeria

Gender diversity on the board provides legitimacy to the firm in its environment and beyond its immediate environment. It also provides the board with a resource of personalities to aid deliberations and effective decision making. This current study investigates the influence of gender diversity on the firm value of Nigeria's listed deposit money banks. Using the census sample technique, the Ex post-facto research design was employed with a sample of 13 listed Deposit Money Banks (DMB). The article draws secondary data from the annual audited financial statement of the DMB spanning from 2011 to 2020. Data were analyzed using descriptive statistics and panel data regression. The results revealed that gender diversity variables, female board composition, and female board audit committee had a statistically insignificant negative effect on firm value. However, the female Chief Executive Officer (CEO) showed a negative and significant impact on firm value. It implies that there exist weak selection criteria for the female CEO. The study, therefore, recommended that attention be focused on the requirements for the selection, recruitment and appointment of the Female CEO, female board member and female board audit committee members. The listed DMB regulatory bodies ensure the creation of a database of qualified, experienced and competent female personnel from which the banks can leverage for recruitment.

CORPORATE GOVERNANCE AND EARNINGS MANAGEMENT: EVIDENCE OF LISTED INDONESIAN COMPANIES

The purpose of this research is to investigate the relationship of corporate governance such as competence of board commissioner and audit committee, audit quality and earnings management in 434 manufacturing sector companies listed in Indonesia Stock Exchange period year 2016-2018. Earnings management proxied by discretionary accrual and profitability proxied by return-on-asset. The results of this study are: (1) firm’s size as control variable is significantly negative influences earnings management (2) profitability which proxied by return-on-asset is significantly negative influences earnings management. Meanwhile, this research did not find support evidence that competence of board commissioner, competence of audit committee, audit quality, revenue growth connection significantly influences on earnings management. Companies can analyze the earnings management through company size and financial ratios such as profitability.

The Impact of Audit Committee Characteristics on Audit Report Time Lag: Evidence From Ghana

The study examines the impact of audit committee characteristics on audit reporting time lag of Ghanaian publicly traded companies. We used the size of the audit committee, gender diversity, and financial expertise to measure the characteristics of the audit committee as against the number of days between financial year-end date and audit report completion. The study predicted and found a negative relationship between audit committee gender diversity and audit report time lag. Also, a negative association between the audit committee financial expertise and audit report time lag was established. Furthermore, a negative association was affirmed between audit report time lag and gender diversity of the committee. The study therefore concluded that the audit committee characteristics leads to audit efficiency indicating that audit committee promotes the prompt delivery of the audit report. As a result, the study suggests that companies consider variegating their audit committee board on these characteristics. Keywords : Audit Committee, Audit report time lag, Board size, financial expertise, Gender diversity. DOI: 10.7176/RJFA/13-4-01 Publication date: February 28 th 2022

Influence of Independent Board Commissioner, Institutional Ownership, and Audit Committee on Tax Avoidance

This study aims to determine the effect of the Independent Board Commissioner, Institutional Ownership and Audit Committee on Tax Avoidance. This study uses quantitative research methods using statistical techniques by processing existing data to prove the proposed research hypothesis. In this case, the object of research is a mining company listed on the Indonesia Stock Exchange during the 2015-2019 period. Purposive sampling method for determining the sample with a population of 39 companies and a sample of 11 companies. The analytical method used is multiple regression analysis with SPSS version 25 program. Partially, the results show that the independent board commissioner and audit committee have no effect on tax avoidance. Meanwhile, institutional ownership has an effect on tax avoidance.

Pengaruh Capital Structure, Firm Performance Dan Good Corporate Governance Terhadap Earnings Management

This research was conducted to analyze the effect of capital structure, firm performance and good corporate governance to earnings management on industry companies listed in Indonesia Stock Exchange period 2017-2019. The technique used in this research for determining the research sample was purposive sampling. The number of research sample is 75 companies from 182 companies registered as industry companies. This research was using quantitative approach. Data analysis method used in this research is multiple linear regression analysis. The result showed that in simultaneously capital structure, firm performance and good corporate governance has a significant effect on earnings management. Meanwhile, the result of partial research shows that capital structure and firm performance has a positive and significant effect on earnings management. Board size has a negative and insignificant effect on earnings management. Board independence and audit committee has a positive and insignificant effect on earnings management.

Audit committee effectiveness, internal audit function and sustainability reporting practices

PurposeThe purpose of this study is to examine the association between audit committee effectiveness (ACE), internal audit function (IAF) and sustainability reporting practices.Design/methodology/approachUsing a cross-sectional and correlational design, useable questionnaires were received from 48 financial services firms in Uganda. The data were analyzed using Statistical Package for Social Sciences.Findingsresults indicate that ACE and IAF are positively and significantly associated with sustainability reporting practices. ACE and IAF are more significantly associated with economic and social indicators than environmental sustainability indicators.Research limitations/implicationsIn terms of practice, it is no longer a matter of having internal auditors and audit committees in place but rather those who are mindful of the welfare of society and the natural environment. The effectiveness of the board audit committee and a functioning internal audit can be assessed in terms of their recommendations and decisions regarding improvements in the welfare of society and the natural environment in addition to the traditionally known performance benchmarks.Practical implicationsThe study focuses on only financial services firms in Uganda, and this is a small sample. Future studies may focus on larger samples to enable comparison of the results.Originality/valueThis study provides insights on the initial understanding of the association between ACE, IAF and sustainability reporting practices using evidence from a developing African country – Uganda.

PENGARUH PENERAPAN GOOD CORPORATE GOVERNANCE TERHADAP KINERJA KEUANGAN BANK UMUM SYARIAH DI INDONESIA

The development of the sharia banking industry is increasingly diverse, with many sharia products and services, with good corporate governance that is important to practice. The purpose of this study is to prove whether or not there is an effect of the implementation of Good Corporate Governance on financial performance. The type of research used is quantitative with an associative approach and secondary data. Purpose sampling technique is used as a sampling technique. Sources of data taken using secondary data are time series obtained from the company. The data analysis technique in this research uses data analysis in the form of panel data. The study found that only the audit committee board has a significant effect on financial performance. Meanwhile, other results prove that good corporate governance has a significant role in the company's financial performance.