Effect Of Corporate Governance Research Articles

Examining Global Resource Mobilization: Strategies and Hurdles in Accessing the International Capital Market

The role of finance is indispensable for business entrepreneurs as it fuels both fixed and working capital, driving growth and operational efficiency. Financial decisions are crucial for directing business growth from its inception through various phases. Corporate finance is pivotal in exploring alternative methods to finance fixed and working capital needs. Capital markets, including domestic ones like India's Securities Exchange Board-regulated and international markets, serve as vital platforms for businesses to secure funding and ensure smooth operations. Effective corporate governance, shareholder wealth maximization, regulatory compliance, profitable project funding, and global brand recognition are key goals for corporations to sustain and thrive. This paper aims to delve into the Overseas Depositories' role in international capital markets, highlighting their contribution to funding corporations globally. It will also discuss the significance of two-way fungibility in trading shares and depository receipts across borders, and how overseas depositories facilitate finance raising for corporations. Additionally, the paper will examine the trading dynamics of American and Global depository receipts vis-à-vis shares in the international capital market context.

Fortifying Transparency: Enhancing Corporate Governance through Robust Internal Control Mechanisms

Purpose: This study explores how robust internal control mechanisms enhance corporate governance by fostering organizational transparency and accountability. The focus is on the interplay between internal controls and corporate governance practices, emphasizing their collective role in promoting organizational success and sustainability. Research Design and Methodology: The study employs a qualitative approach, conducting a comprehensive literature review of peer-reviewed articles, books, and reports. Using relevant keywords, data were collected from academic databases such as PubMed, Scopus, Web of Science, and Google Scholar. Thematic analysis was used to categorize and synthesize recurring themes and patterns, ensuring objectivity and rigor in data interpretation. Findings and Discussion: The findings of this study have significant practical implications. They reveal that effective corporate governance frameworks, underpinned by robust internal control mechanisms, not only enhance transparency, accountability, and ethical conduct but also mitigate risks, safeguard assets, and ensure compliance with regulations. This underscores the real-world relevance of the research and its potential to guide organizational practices. Implications: This study highlights the need for organizations to comprehensively integrate internal control mechanisms into their governance frameworks. It also emphasizes the importance of fostering a culture of integrity, adopting technological innovations, and maintaining compliance with evolving regulations. However, the study also points to the need for future research, particularly longitudinal studies, and interdisciplinary approaches, to further understand the dynamic governance-control relationship. This opens opportunities for further exploration and the development of more effective corporate governance practices.

Board Characteristics and Bank Stock Performance: Empirical Evidence from the MENA Region

This study examined the relationship between the board characteristics and stock performance of commercial banks. Our analysis is based on a sample of 65 banks across 10 MENA countries and their quantitative data extracted between 2013 and 2022. This research employed pooled OLS, and fixed and random effect regression to confirm the association between board size, board independence, number of board meetings, and CEO duality with stock performance measured by the bank’s share price and market-to-book ratio. Further, several control variables were utilized such as the bank’s capital adequacy, profitability, and size. The empirical findings reveal that board independence positively affects the bank stock performance while the board size shows a negative relationship. This suggests that banks with fewer board members and high independence levels have their shares outperforming others. However, we found that having frequent board meetings per year and separate roles for the CEO and chairman have no impact on bank stock performance. Moreover, the findings indicate that the bank’s capital adequacy, size, and profitability have a positive effect on the stock performance. To test the robustness of our analysis, we implemented a one-limit Tobit model, which enables lower-bound censoring, and obtained similar findings thus confirming our hypotheses. From a practical perspective, our findings highlight the importance of the board size and the directors’ independence to MENA regulators and policymakers in an effort to implement an effective corporate governance system. Specifically, MENA banks are advised to decrease the number of board members, and this should reduce the number of annual board meetings which, in turn, should maximize performance.

The Effect Of Corporate Governance On Cash Holdings

The Effect Of Corporate Governance On Cash Holdings

Corporate Governance Dynamics and Financial Performance: Analysis of Listed Commercial Banks in the Ghanaian Context"

This study aims to determine the effect of corporate governance on the financial performance of 14 listed commercial banks in Ghana. The research employs a panel data set from 2008 to 2020 to examine how board size, ownership structure, board independence, capital adequacy ratio, audit committee effectiveness, board gender diversity, and overall corporate governance score affect ROA and ROE for banks. These relationships are analyzed using Ordinary Least Squares (OLS) regression within the framework of panel data analysis. Results indicate that ROA is positively related to board size, board independence, audit committee, and Board gender diversity. Also, ROE is positively influenced by companies’ ownership structure, capital adequacy ratio, audit committee effectiveness, and overall corporate employment governance rating. However, there is a significant negative correlation between ROE and women’s representation or board gender diversity. Also, another key finding is that both Return on Assets (ROA) and Return on Equity (ROE) are significantly affected by debt and debt-to-equity ratios. This indicates that banks borrowing more have reduced profitability, underlining the need for a well-managed capital structure and no over-reliance on loans. This study contributes to the understanding of the relationship between corporate governance and performance in the banking sector of Ghana, emphasizing that high-quality governance systems can improve and enhance financial performance. The insight gained from this analysis shows that Banks should aim towards good corporate governance practices such as; maintaining proper board size, promoting greater board independence, ensuring efficient audit procedures, and encouraging more gender diversity to enhance profitability. The outcomes also emphasized a well-built base of capital and concentrated ownership, enabling better financial results.The outcomes of this research are useful to Ghanaian policymakers, regulators, and bank executives who view the need for strong corporate governance environments to buttress the stability and growth of the banking sector.

Corporate Governance and Ceo Characteristics on Financial Reporting Quality: Evidence from Consumer Goods Companies in Asean

Objective: The purpose of this study is to obtain empirical evidence regarding the effect of corporate governance (board size, board independence, audit committee size, audit committee independence) and CEO characteristics (CEO age, CEO duality, and CEO gender) on financial reporting quality. Method: This study conducted content analysis and linear regression analysis on 258 consumer goods sector companies listed on the Osiris and Bloomberg databases for the period 2018-2021. Results and Discussion: The results obtained revealed that board size and CEO gender have a positive effect on financial reporting quality. In contrast, board independence and CEO duality have a negative effect on financial reporting quality. Meanwhile, audit committee size, audit committee independence, and CEO age have no effect on financial reporting quality. Research Implications: The research on financial reporting quality explains useful implications for companies to make economic decisions and avoid fraud that happens to a company. Originality/Value: Authors find that no studies have investigated the effect of corporate governance and CEO characteristics in the ASEAN context. This study provides empirical data about the effect of corporate governance and CEO characteristics on financial reporting quality and how these different compositions and characteristics can facilitate the transition to manipulate and affect the financial reporting quality.

The impact of green innovation on the carbon performance of Chinese manufacturing enterprises: Moderating role of internal governance

With the increasing problems of global warming, ecological damage, and excessive consumption of resources, a greater number of countries are focusing on corporate carbon performance and carbon emissions. Enterprises can save energy and reduce emissions through green innovation, which will improve the efficiency of carbon use and contribute to higher levels of corporate carbon performance. Meanwhile, effective corporate governance can improve enterprise performance, while internal governance systems can affect enterprise carbon performance. This study aims to reveal how the green innovation affect carbon performance of enterprises and the role of internal governance. So this study utilizes the data of China's A-share listed manufacturing companies from 2010 to 2020 to examine the impact of green innovation on corporate carbon performance through a fixed-effects model, and to examine the impact of corporate internal governance structure on green innovation and carbon performance through a moderating-effects model. The data used in this study are mainly from China Securities Market and Accounting Research Database (CSMAR) and China Research Data Service Platform (CNRDS), and the robustness test is conducted by replacing the independent variables using the 2sls method. The findings indicate that green innovation has a significant contribution to enterprise performance on carbon. Ownership concentration and executive political connections negatively moderated the relationship between green innovation and carbon performance. Director compensation positively moderates the relationship between green innovation and carbon performance. This research provides a theoretical groundwork for future studies on green innovation and carbon performance, and its findings are instructive for both the introduction of government policies and the restructuring of internal corporate governance.

Effect of Government Guidelines and Corporate Governance on Telework Adoption and Occupational Health Measures in Taiwanese-Listed Companies

BackgroundTelework adoption in Taiwan has surged because of government guidelines during the COVID-19 pandemic. This study examined the disclosure practices of Taiwanese-listed companies, assessing their adherence to government telework guidelines and their correlation with corporate governance, focusing on occupational health measures. MethodsWe conducted a guideline-adherent cohort analysis of the 2020 and 2021 sustainability reports of 295 Taiwanese-listed companies. We assessed their disclosure of corporate measures for teleworking in alignment with two government guidelines, specifically occupational health measures. Using the McNemar test and general estimating equation analysis, we compared the 2020 and 2021 responses and examined their associations with corporate governance rankings. ResultsTelework adoption increased significantly from 2020 to 2021, with 68% of companies reporting new work modes. The mentioning of government guidelines also increased to 67% by 2021. Companies with higher governance rankings were more likely to adopt online occupational health measures, including occupational health services (RR = 2.03; 95% CI = 1.41–2.94; p < 0.001) and mental health promotion activities (RR = 2.01; 95% CI = 1.06–3.82; p = 0.032), than those with low rankings. Although on-site and online occupational health services increased, home workspace assessments did not. ConclusionOur findings highlight significant upward trends in the disclosure of telework measures following the issuance of government guidelines. Corporate governance is significantly associated with the implementation of occupational health measures. Amid the evolution of teleworking, both government guidelines and corporate governance have become essential for shaping work arrangements and ensuring workforce well-being.

Capital Structure, Corporate Governance and Profitability of Listed Industrial Goods Firms in Nigeria

Nowadays, industrial goods firms have experienced draught in debt financing due to the lending preference of financial institutions to firms in the oil and gas sector, corporate failures and financial scandals as well as the overstatements of accounts of some firms in and outside Nigeria blamed to be as a result of account improprieties and ineffective board of directors also Issues of the mixed outcome of previous researches; thus, necessitating and justifying the need for undergoing more investigations into the subject area. The objective of this study is to determine the overall effect of capital structure and corporate governance on profitability with the influence of firm size of the sampled industrial goods firms. The study used multiple regressions as a tool for analysis. The population of the study includes the thirteen (13) industrial goods firms listed by the Nigerian Stock Exchange as of 31st December 2022 out of which ten (10) are considered as sample size. The study employed panel data analysis by using random-effect estimation model as alternatively considered more appropriate. Secondary data explored from the annual reports and accounts of the sampled firms for the period of ten (10) years from 2013 to 2022 were analyzed. The results revealed that Leverage, board size and firm size are negatively significant at 1% level of significance. While board composition is positively significant at 5% level of significance to the profitability of the sampled firms. In view of the findings, it is recommended that the financial managers/ management of the industrial goods firms should have more independent directors of its board size to enhance proper control over the activities of the managers through which profit level would be increased. It is therefore recommended to conduct careful evaluation and take into consideration on leverage, board size and firm size that influence the profitability of their firms before making major business decisions as this will go a long way in improving their profitability.

The Role of Tax Management as a Moderator in the Effect of Tax Retention Rate and Good Corporate Governance on Earning Quality

The industrial sector plays a very important role in people's lives, as it is the part of the economy that is responsible for the production of goods and services. The primary objective of this research is to empirically explore the dynamic between Tax Retention Rate and Good Corporate Governance concerning Earning Quality, while simultaneously investigating the potential moderating role of Tax Management. Meanwhile, Good Corporate Governance is a critical factor that can affect the integrity and transparency of the company in carrying out its operations. Earning Quality, as a measure of the quality of a company's earnings, is the main parameter in measuring the company's financial performance. The study's research design follows quantitative and associative methodologies. The research population encompasses companies within the industrial sector, as listed on the Indonesia Stock Exchange during the temporal span from 2017 to 2021. Employing a purposive sampling technique, a sample comprising 15 companies, leading to a dataset of 75 observed data points, was selected. To conduct the analysis and hypothesis testing, panel data regression analysis was employed, utilizing Eviews version 12 as the analytical tool. The outcomes of the T-test analyses are noteworthy, as they reveal that both the tax retention rate variable and the good corporate governance variable distinctly influence earning quality. However, the importance of tax management as a mediator in the correlation between tax retention rate and earning quality is insignificant. The findings of this study are expected to provide new insights for stakeholders, regulators, and business practitioners in optimizing tax management and maintaining the quality of corporate profits in the Indonesian capital market environment.

PENGARUH LIKUDITAS DAN FAKTOR LAIN TERHADAP CASH HOLDING DI MODERASI GOOD CORPORATE GOVERNANCE

The purpose of this study was to obtain evidence related to the effect of liquidity, leverage, company size, capital expenditure, and good corporate governance on cash holdings in manufacturing companies listed on the Indonesia Stock Exchange during the period 2018 to 2020. With purposive sampling technique, the data used in this study as many as 52 companies with a total 156 observations of data for three years and processed using the Eviews 12 software. This study uses Multiple Regression Analysis and Moderated Regression Analysis. The results of the study partially show that liquidity and capital expenditure do not have a significant effect on cash holding. Meanwhile, leverage and company size have a significant effect on cash holding. Good corporate governance as a moderating variable to examine the relationship between capital expenditure and cash holding shows that good corporate governance does not moderate the relationship between capital expenditure and cash holding.

Faktor yang mempengaruhi kinerja pembiayaan bagi hasil Bank Syariah di Indonesia

The purpose of this study is to analyze the effect of Good Corporate Governance on the Performance of Sharia Bank Profit Sharing in Indonesia, to analyze the effect of Investment Account Holders on the Performance of Sharia Bank Profit Sharing in Indonesia, to analyze the effect of Bank Capital on the Performance of Sharia Bank Profit Sharing in Indonesia and to analyze the influence of Bank Assets on the Performance of Sharia Bank Profit Sharing in Indonesia. The population in this study is the Sharia Commercial Bank and Sharia BPR companies that have been registered with Bank Indonesia until the end of 2014 until 2017. The sampling technique uses purposive sampling technique. The analytical tool used in this study is using multiple linear regression. Based on the results of the hypothesis test shows that Good Corporate Governance has a significant influence on the Performance of Profit Sharing; Investment Account Holders has a significant influence on the Performance of Revenue Sharing; There is no influence of Bank Capital on the Performance of Financing for Profit Sharing and Bank Assets that have a significant influence on the Performance of Profit Sharing.

The moderating effect of corporate governance on readability of the chairman's statement: an analysis of Jordanian listed companies

The moderating effect of corporate governance on readability of the chairman's statement: an analysis of Jordanian listed companies

Adoption of International Public Sector Accounting Standards and Quality of Financial Reporting in National Government Agricultural Sector Entities, Kenya

The general objective of this study was to determine the effect of the adoption of International Public Sector Accounting Standards on the quality of financial reporting in national government agricultural sector entities in Kenya. The study was guided by the following specific objectives: to assess the effect of adopting a standardized chart of accounts on the quality of financial reporting in national government agricultural sector entities in Kenya; to assess the effect of disclosure and valuation of assets and liabilities on the quality of financial reporting in national government agricultural sector entities in Kenya; to evaluate the effect of accounting policies, estimates, and errors on the quality of financial reporting in national government agricultural sector entities in Kenya; and to determine the effect of corporate governance reporting on the quality of financial reporting in national government agricultural sector entities in Kenya. The study adopted a cross-sectional survey research design. The target population consisted of 11 national government agricultural sector entities, which served as the unit of analysis. Within these entities, the unit of observation included finance managers, accountants, financial analysts, and internal auditors. Purposive sampling was employed to deliberately select 44 respondents. Four, representing 10% of the study sample, participated in a pilot test. Primary data was obtained utilizing a semi- structured questionnaire. The Statistical Package for Social Sciences (SPSS) version 25 software was used to analyze the data. Qualitative data was analyzed using content analysis and presented in prose form. Descriptive and inferential analysis techniques were employed for qualitative data analysis. Descriptive statistics such as frequency, percentages, and means were used. Pearson correlation coefficient was used for testing the strength and direction between the independent and the dependent variables. A multiple regression model was used to test the significance of the influence of the independent variables on the dependent variable.The findings were presented in Tables and figures. The regression analysis revealed significant positive relationships between adopting a standardized chart of accounts, disclosure and valuation of assets and liabilities, accounting policies, estimates, and errors, as well as corporate governance reporting, and the quality of financial reporting, with beta coefficients of 0.324, 0.235, 0.347, and 0.481, respectively. To enhance financial reporting quality in national government agricultural sector entities, recommendations entail implementing robust standardized chart of accounts, improving transparency in disclosing asset and liability information, establishing clear accounting policies and error management practices, and strengthening corporate governance reporting mechanisms.

The effect of tax avoidance on earnings persistence: evidence from China

PurposeThe purpose of this paper is to investigate the relationship between tax avoidance and earnings persistence in the light of a developing economy, with the main focus on China.Design/methodology/approachIn the analysis, the author conducts a survey on the tax avoidance situation of Chinese listed companies from 2012 to 2020. Then, a multivariate regression analysis is performed in order to analyse the relationship between corporate tax avoidance and earnings persistence.FindingsThe findings of the present study show that tax avoidance has a significant positive effect on earnings persistence. However, when the degree of tax avoidance is high, the “risk effect” of tax avoidance exceeds the “value effect”, and tax avoidance will reduce the persistence of earnings. This conclusion is even more prominent when the company is non-state-owned. Further research shows the increase of institutional investors’ shareholding ratio can improve “value effect” of tax avoidance, lessen “risk effect” of tax avoidance, and positively affect the relationship between tax avoidance and earnings persistence.Practical implicationsThis study provides evidence for investors to understand the dual effect of tax avoidance on earnings persistence. The results may have implications for regulatory bodies. They can provide a better understanding of the corporate governance role of institutional investors in curbing opportunistic tax avoidance.Originality/valueThis study enriches the research on tax avoidance effects by analysing the impact of tax avoidance on earnings persistence. This study also compensates for the shortcomings of analysing earnings persistence mainly from the perspective of tax differences in the past, and promotes the study of the corporate governance effects of institutional investors under different levels of tax avoidance.

How to deter earnings manipulation in Chinese banks? A study from the combined effects of corporate governance, enterprise resources, and supervisory mechanisms

AbstractThe study proposes methods for deterring earnings manipulation in Chinese commercial banks, recognizing it as an ongoing problem with the potential to destabilize investors and financial markets. The increasing integration of the global financial system has heightened the importance of addressing this issue, given the systemic risk posed by large individual financial institutions. Utilizing the Fuzzy Set Qualitative Comparative Analysis method (fsQCA) on 139 Chinese commercial banks in 2021, the paper explores factors influencing banks' earnings manipulation behavior. The study reveals several key findings: (1) Factors associated with reducing the likelihood of earnings manipulation in commercial banks are diverse and multifaceted. (2) Multiple paths exist to achieve earnings manipulation, categorized into Resource‐guided, Corporate Governance, Resource and Supervisory Mechanism, Supervisory Mechanism, and Corporate Governance as the main mechanism. Among these, the Supervisory Mechanism exhibits the highest consistency. (3) Hiring “Big Four” accounting firms as auditors emerges as a significant deterrent against earnings manipulation in commercial banks. (4) Banks with powerful major shareholders affiliated with the government or ample resources are effective in deterring earnings manipulation. These two factors are complementary, while a bank's growth prospects and industrial competition serve as substitute factors.

The Determinants of Sustainable Innovation Expansion Strategy: the Case Study of Companies from a Declining Industry

Stimulation and improvement of innovative development is an extremely important component of economic growth in an economy, along with the companies’ competitiveness in stagnating industries, which is especially relevant for companies at the maturity stage of the life cycle, where the risk of transition to the decline stage is highest. Without new developments and a sustainable innovation strategy, a company loses its leading position in the industry and misses new opportunities, leading it to the stage of stability and decline. Thus, it is important to study the factors that contribute to R&amp;D intensity and encourage innovations in detail. This study investigates the impact of high level and quality of companies’ patent activityon their financial potential in order to maintain stable innovation performance in the medium term. The sample comprises companies from the printer and camera sector between 2007 and 2020. The determinants of innovation expansion that characterize the technological readiness and market potential of firms to maintain their leading position in a highly competitive market are identified, using a case study method using the example of Canon and its competitor Xerox. The data are collected from Bloomberg and Orbis Patent Database. The results show that while high innovation activity is an important driver of growth, it does not always lead to better financial performance in the earlier stages of the life cycle. The study contributes to the literature by examining different characteristics of innovation activity and life cycle stages through the lens of external economic changes, which brings transparency and clarity in understanding the possible problems that may result from using already disclosed innovations of competitors as well as disclosing one’s own intellectual property rights. The study proves that the greatest effect of innovation activity is observed in companies whose R&amp;D expenditures are close to the industry average values along with diversification of revenue. The results of the study can help policy makers, managers and shareholders to build effective corporate governance to achieve strategic goals and minimize the risks of making wrong management decisions in R&amp;D investments.

The Influence of Good Corporate Governance and Profitability on Company Value on the Indonesian Stock Exchange

Rapid economic development requires companies to improve their performance to generate maximum profits and maintain survival. A company's main goal is to increase its value, which is attractive to investors, Managerial mistakes can lead to a decline in public trust, decreasing share values and company value. Good corporate governance (GCG) increases company value by encouraging clean, transparent, professional, and responsible management. The aims of this study are to examine the effect of good corporate governance represented by management ownership, independent board of commissioners, and profitability represented by return on asset (ROA) on firm value in the transportation and logistics company listed on the Indonesia Stock Exchange from 20212022. The analysis technique used in this research is multiple linear regression analysis. The population used in this study were all companies in the transportation and logistics company listed on the Indonesia Stock Exchange. The sample in this study were all companies that survived during the 2021 to 2022 consisting of 16 companies (that met the criteria. The sampling technique used in this study is the purposive sampling method. The results of this study indicate that (1) management ownership has a significant effect on firm value, (2) the independent board of commissioners has a significant effect on firm value. (3) return on assets has a significant effect on firm value. Keywords: firm value, good corporate governance, independent board of commissioners, management ownership, return on assets.

Leveraging On Corporate Governance For Supply Chain Resilience Of Sugar Manufacturing Firms In Kenya

Sugar manufacturing firms in Kenya have faced a myriad of challenges with regard to cost control, production inefficiencies, incompetent management and lack of information technology integration in production issues which are directly controlled by management. The influence of corporate governance on supply chain resilience of sugar manufacturing firms in Kenya thus cannot be underrated. The specific objective of the study was; to assess the effect of Corporate Governance on Supply chain Resilience of Sugar Manufacturing firms in Kenya. The research study methodology followed a descriptive approach with a target population of the study of 240 respondents, covering various departments within the Sugar firms. A census survey was conducted on all the 15 registered sugar manufacturing firms in Kenya. Data collected was analyzed by both descriptive and inferential statistics using statistical package for social sciences (SPSS Version 28). Descriptive statistics involved calculation of means, frequencies, percentages and standard deviation. Inferential statistics on the other hand included the use of Pearson correlation coefficient to determine the extent of relationship among the independent study variables, while multiple regression analysis was used to establish the relationship between corporate governance and supply chain resilience. Findings from data analysis in the study indicated that corporate governance was significantly responsible for the supply chain resilience of sugar manufacturing firms in Kenya. Consequently, yielding a positive relationship in the regression model. The findings from the regression model indicated that corporate governance, significantly and positively affected supply chain resilience of sugar manufacturing firms in Kenya. The study therefore recommended that the management of sugar manufacturing firms in Kenya in collaboration with the appointing authorities should embrace good practices when appointing managing directors in-charge of the sugar firms to achieve supply chain resilience through, continuous production, resource optimization, quality output and general bottom line improvement.

Governance mediation in the era of disruptive technologies: unveiling new perspectives on the risk of material misstatements

Purpose This study aims to examine the mediating effects of corporate governance mechanisms like the board of directors on the association between disruptive technology adoption by audit clients and the risk of material misstatements, including inherent risk and control risk. In particular, the authors study the mediating effects of board characteristics such as board size, independence and gender diversity. Design/methodology/approach Based on a sample of 100 audit clients listed on the FTSE 100 from 2015 to 2021, this study uses structural equation modelling to test the research objectives. Findings The findings indicate a significant and negative association between disruptive technology adoption by audit clients and inherent risk. However, there is no significant evidence observed for control risk. The utilisation of disruptive technology by the audit client has a significant impact on the board characteristics, resulting in an increase in board size, greater independence and gender diversity. The authors also find strong evidence that board independence mediates the association between disruptive technology usage and both inherent risk and control risk. In addition, board size and gender exhibit distinct and differential mediating effects on the association and across the two types of risks. Research limitations/implications The study reveals that the significant role of using disruptive technology by audit clients in reducing the risk of material misstatements is closely associated with the board of directors, which makes audit clients place greater emphasis on the construction of effective corporate governance. Practical implications This study offers essential primary evidence that can assist policymakers and standard setters in formulating guidance and recommendations for board size, independence and gender quotas, ensuring the enhancement of effective governance and supporting the future of audit within the next generation of digital services. Social implications With respect to relevant stakeholders, it is imperative for audit clients to recognise that corporate governance represents a fundamental means of addressing the ramifications of applying disruptive technology, particularly as they pertain to inherent and control risks within the audit client. Originality/value This study contributes to the existing literature by investigating the joint impact of corporate governance and the utilisation of disruptive technology by audit clients on inherent risk and control risk, which has not been investigated by previous research.