Influence Of Audit Committee Characteristics Research Articles

Do audit committee structure increases influence the level of voluntary corporate governance disclosures?

PurposeThe purpose of this paper is to provide an insight into the voluntary corporate governance disclosure and AC practices among Malaysian property listed companies. Along with that, the influence of AC characteristics on voluntary corporate governance disclosure was also examined.Design/methodology/approachThe study used the content analysis of annual reports to extract voluntary corporate governance disclosures and audit committee (AC) practices. The relationship between voluntary corporate governance disclosures and AC characteristics was examined by using the panel data regression analysis.FindingsBased on the results of the study, it can be concluded that all three variables: AC size, AC independence and AC meetings are the factors that influence the level of voluntary corporate governance disclosure among sampled companies.Practical implicationsThis study provides an overview of voluntary corporate governance disclosures practices, which have shown an increasing trend of information disclosed by Malaysian listed property companies. Additionally, the AC structure was also found satisfactory with highly independent and higher number of meetings as required by Malaysian Code of Corporate Governance and Bursa Malaysia requirement.Social implicationsBy filling the gap identified in this study, investors’ confidence will boost as they will have sufficient information about the Malaysian listed property companies – resulting in strengthening competitiveness and growth by attracting local and foreign investments in the country. The influence of AC attributes over the quality of disclosure among Malaysian listed properties companies is identified, and regulators introduce more explicit rules for AC mechanism for improving the disclosure quality. The increase in the quality of information provided in the annual reports will lead toward highly efficient and transparent stock market.Originality/valueThis study has provided an insight into corporate governance of listed companies in Malaysia, which will contribute to the extended literature. Along with that, it will also provide an overview of corporate governance structure among Malaysian listed companies to the policy makers.

The Effect of Audit Committee Characteristics on Financial Restatements in Malaysia

ABSTRACTThis study investigates the influence of audit committee characteristics on the likelihood of financial restatements by firms in Malaysia. Annual reports of 350 firms that have restated their financial statements in the year 2008 and 2009 are analyzed. An additional 350 firms that did not restate their financial statements are considered, resulting in a total of 700 observations. Regression analysis identifies audit committee characteristics such as its independence, size, expertise and activity as statistically significant in explaining the likelihood of financial restatements. This article highlights the important role of the audit committee in mitigating financial restatements by firms in Malaysia.

Analyzing Performance Implications of Selected Audit Committee Characteristics: A Study of Indian Corporate Sector

The present research work mainly focuses on the audit committee as a key to ensure a sound corporate governance framework in the companies. The insights from the present research work are a novel attempt to figure out the influence of selected audit committee characteristics on the performance of companies listed in India. Results suggest that audit committee size has a curvilinear effect on firm market valuation having an inflexion point of four directors comprising the members of the audit committee. Furthermore, the independent directors on the audit committee start contributing toward better firm accounting performance only after they constitute more than the majority. The audit committee activity has also demonstrated a significant relationship with firm performance in a nonlinear fashion. The above findings have been robust to the several alternative empirical tests and modifications. It also reveals that the findings solely based upon the linear testing of influence of audit committee characteristics are not conclusive in nature. Moreover, the findings generated from the characteristics of audit committee–firm performance association in this study are contingent upon the nature of performance measure being adopted. In relation to it, suitable implications and propositions have been quoted in the last section so as to offer directions to the interested parties.

THE INFLUENCE OF AUDIT COMMITTEE AND OWNERSHIP STRUCTURE ON EARNINGS MANAGEMENT

<p>The objective of this study is to analyze the influence of audit committee characteristics and ownership structure on earnings management. The characteristics which are used to measure the effectiveness of the audit committee are audit committee independence, audit committee competency, audit committee activity and audit committee size. Ownership structures are characteristics of public ownership, institutional ownership, and managerial ownership. Earnings management in this study were measured by using the value of discretionary accrual. The population in this study is manufacturing companies listed on the Indonesia Stock Exchange (BEI) in 2007-2012. Based on purposive sampling method, the number of samples in this study was 66 samples. Testing the hypothesis used multiple regression analysis. The results indicate that audit committee independent, audit committee size and institutional ownership had a significant negative effect on earnings management. Instead the others variables such as audit committee competency, audit committee activity, public ownership and managerial ownership did not influenced on earnings management.</p>

The Impact of Audit Committee Characteristics on Corporate Voluntary Disclosure

The purpose of this study is to investigate the influence of audit committee characteristics on corporate voluntary disclosure of 146 Malaysian listed firms for the year 2009. Based on content analysis of disclosure, the empirical results of multiple regressions reveal that audit committee independence, size and multiple directorships of audit committee members are positively associated with corporate voluntary disclosure. Frequency of meetings and financial expertise of audit committee members are not significantly associated with corporate voluntary disclosure. The results offer evidence to policy makers, investors and accounting professionals on the extent to which audit committee characteristics associated with such committee effectiveness in monitoring corporate reporting processes.

PENGARUH KARAKTERISTIK KOMITE AUDIT TERHADAP MANAJEMEN LABA

This study aimed to get empirical evidence from the influence of audit committee characteristics to earnings management. The dependent variable in this study is proxied by earnings management discretionary accruals while the independent variable is audit committee characteristic which proxied by the size of the audit committee, the number of meetings, independent members and financial expertise. Samples are companies listed on the Indonesia Stock Exchange in 2013, with using purposive sampling method. Data analysis using multiple regression model and descriptive statistics. Statistical analysis showed that the size of the audit committee, the number of meetings, independent audit committee members and financial expertise negatively affect discretionary accruals.

Influence of Audit Committee Characteristics on Voluntary Ethics Disclosure

This study examines the influence of audit committee characteristics on voluntary ethics disclosures of the top 94 companies listed on Bursa Malaysia. The study employs content analysis of company's annual report and multiple linear regressions to look at the relationships between voluntary ethics disclosure and audit committee characteristics. The result from the study suggests that only two audit committee characteristics (tenure and multiple directorships) are associated with the voluntary ethics disclosure, whilst independence, expertise, meeting frequency and size were inconsistent. This study serves to assist the stakeholders in putting greater emphasis on audit committee in determining ethics disclosure of companies.

PENGARUH KARAKTERISTIK KOMITE AUDIT TERHADAP PENGUNGKAPAN INTELLECTUAL CAPITAL PADA PERUSAHAAN IC INTENSIVE YANG TERDAFTAR DI BEI

This study aims to analyze the influence of audit committee characteristics, which is consists of : audit committee membership, audit committee independence, independent commissioner proportion, audit committee chief and audit committee competence on the intellectual capital disclosure, companies used in the category of intensive ICs at BEI in 2009, also considering the control variables. The population included in the category of IC intensive companies amounted to 176. Sampling using a purposive sampling method and obtained 73 samples that meet the criteria.The data used in this study is secondary data, the annual report of the company in 2009 and processed by multiple regression. ICs disclosure acquisition data using content analysis techniques to the analysis unit that has been determined, the IC disclosure have been acquired in quantity and quality terms. The results showed that among audit committee characteristics that are used only audit committee membership and audit committee chief which affects the IC disclosure in quantity terms. While two other control variables which are size and profitability, showed different results. Only size was affected significantly in quality IC disclosure terms.

Audit Quality and Firm Value: A Case of Pakistan

The present study intends to explore the influence of audit committee characteristics on a firm’s financial performance. The corporate governance mechanisms are highly recognized in era of global financial crisis and current economic recession. Audit committee is one of the core mechanisms that ensure good corporate governance in the firms. Yet, very less evidence found on the impact of audit committee and its characteristics on firm’s performance in the context of Pakistani literature. For that reason, four audit committee characteristics were identified namely audit committee size, independence, activity and quality of external audit to study their impact on firm financial performance while using ROA as accounting measure and Tobin’s Q as market measure. The results of panel data showed that two audit committee characteristics namely audit committee size and external audit quality has strong and significant positive impact on ROA and Tobin’s Q. Another two variables namely audit committee independence and AC activity remains insignificant, which is consistent with mostly previous studies carried in different countries. In short, present study provides an insight to all the regulators, policy makers and stakeholders while adopting certain audit committee characteristics in Pakistan; overall firm’s financial performance can be improved. For further research audit committee expertise can be used to determine the improvement in corporate performance by getting data from the company’s management.