Number Of Audit Committee Meetings Research Articles

The Impact of Audit Committees and Chief Executive Officer Characteristics on Real Earnings Management

Earnings management is an opportunistic behavior influenced by many factors. However, previous studies have not extensively investigated the impact of audit committee mechanisms and Chief Executive Officer (CEO) characteristics on real earnings management. This study aims to analyze the impact of audit committee mechanisms and CEO characteristics on real earnings management. The study utilizes secondary data from manufacturing companies listed on the Indonesia Stock Exchange from 2020 to 2022. The audit committee mechanism is proxied by using two measurements i.e. the number of audit committee meetings and the educational background of the audit committee, Meanwhile, CEO characteristics are proxied by the gender and the CEO's tenure. By applying multiple regression, this study finds that the number of audit committee meetings and CEO’s tenure have significant negative effects on real earnings management. Meanwhile, the background of the audit committee does not affect real earnings management. Interestingly, this study finds that male CEOs decrease real earnings management. Therefore, this research provides evidence that the number of audit committee meetings and CEO’s tenure play significant roles in reducing opportunistic behavior in a company.

The Impact of Audit Committee Characteristics on ESG

In light of the growing significance of sustainability objectives and their connection with future economic landscapes, and considering the fundamental role of audit committees in the financial reporting environment, this study aims to measure the impact of audit committees characteristics on the level of disclosure of Environmental, Social, and Governance (ESG) practices in the annual reports of companies listed on the Saudi financial market. This study utilizes the ESG index compiled by Bloomberg, which measures companies' disclosure levels for this purpose. Due to data availability, the sample includes 44 companies listed on the main market during the period from 2017 to 2021. Using multiple regression analysis, this study shows a positive impact of the independence, size, and financial expertise of audit committees on the level of disclosure of ESG practices. Additionally, the results show a negative impact of the number of audit committee meetings on the level of disclosure of ESG practices. KEYWORDS accounting, financial expertise, independence, quality, size, sustainability

THE IMPACT OF CORPORATE GOVERNANCE ON THE EARNINGS QUALITY FOR A SAMPLE OF BANKS LISTED ON THE IRAQ STOCK EXCHANGE

Purpose: The purpose of the current study is to shed light on the influential role of corporate governance in improving the quality of profits in banks listed on the Iraqi Stock Exchange. Design/methodology/approach: To achieve the objectives of the current study and test the hypotheses from an experimental perspective by reviewing previous studies and relying on them to provide a model that shows the importance of corporate governance in the quality of profits. To achieve this, a sample of 18 banks listed on the Iraq Stock Exchange was approved for 2013-2022. Results: The research concludes that governance statistically affects the quality of profits for the banks in the research sample. It has become clear that the ownership structure, the number of board members, and the number of audit committee meetings effectively improve the quality of profits. Originality/value: Given the great need to prepare financial statements that are characterized by quality and reliability, this matter requires the availability of an effective control system that works to provide an appropriate work environment and contributes to raising the quality of profits announced in the reports.

Pengaruh Cash Holding, Keputusan Investasi dan Struktur Modal terhadap Nilai Perusahaan dengan Komite Audit sebagai Variabel Moderasi

This research aims to determine the influence of Cash Holding, Investment Decisions and Capital Structure on Firm Value with the Audit Committee as a Moderating Variable. The measurements used for each variabel are firm value using Tobin's Q, cash holding using CH, investment decisions using the TAG proxy, capital structure using the DER proxy, and audit committees using measurements using the number of audit committee meetings in the company. The population in this research are companies in the Consumer Non-Cyclical sektor in 2020-2022 which are listed on the Indonesia Stock Exchange (IDX). The data used is secondary data with a sampling technique using the purposive sampling method. Based on this method, there are 89 companies in the population out of 112 companies that meet the criteria. The samples were taken over a three year annual financial reporting period so that in total there were 210 samples. The analytical method used in the research is multiple linear regression analysis. The results of the analysis show that investment decisions have a positive effect on firm value. Meanwhile, cash holding and capital structure have no effect on firm value. The audit committee as a moderating variable is able to strengthen the influence of cash holding and investment decisions on firm value. However, the audit committee was unable to weaken the influence of capital structure on firm value. Keywords: Audit Committee, Capital Structure, Cash Holding, Firm Value, Investment Decisions.

PENGARUH JUMLAH DEWAN KOMISARIS, STRUKTUR MODAL PERUSAHAAN, DAN JUMLAH RAPAT KOMITE AUDIT TERHADAP PROFITABILITAS PERUSAHAAN PADA SEKTOR TEKNOLOGI YANG TERDAFTAR DI BEI TAHUN 2020- 2021

This research aims to analyze the influence of the number of board of commissioners, capital structure of the company, and the number of audit committee meetings on the profitability of technology companies listed on the Indonesia Stock Exchange from 2020 to 2021. The research adopts a quantitative approach using secondary data obtained from the annual reports of technology companies from idx.co.id and the official websites of the companies. Data analysis is conducted using multiple linear regression. The results of the research indicate that, partially, the number of board of commissioners has a positive impact on the profitability of technology companies. However, the capital structure of the company and the number of audit committee meetings cannot be proven to have an influence on profitability. Furthermore, the results of the research reveal that, collectively, the number of board of commissioners, capital structure of the company, and the number of audit committee meetings have an impact on the profitability of technology companies during the period of 2020-2021.

The impact of audit committee attributes on integrated reporting quality: evidence from European companies listed on the STOXX Europe 600 index

PurposeThis paper aims to shed light on the relationship between audit committee attributes and integrated reporting quality (IRQ).Design/methodology/approachData on a sample of 360 European firms selected from the STOXX Europe 600 index between 2010 and 2021 were used to test the model based on multiple regression for panel data to analyze the effect of audit committee attributes on IRQ. This paper considers generalized least squares (GLS) estimation for panel data models.FindingsThe findings of this study confirm expectations concerning the impact of audit committee attributes on the IRQ. Indeed, audit committee independence and meetings have a significant positive impact on IRQ. However, no significant association is found between financial expertise and IRQ.Practical implicationsThe findings of this paper have significant implications for policymakers, who, through proper legislation, should encourage the formation of larger audit committees and ones with a higher percentage of independent members. They should also establish a minimum number of audit committee meetings per year. These regulations, which aim to increase the efficacy of audit committees’ supervisory and monitoring tasks, would promote corporate transparency and improve IRQ.Originality/valueThis study supports the existing literature. First, it expands the scientific debate on IRQ. Second, unlike previous studies, which used more subjective methods to measure the degree of integrated reporting (IR), this study relied on the CGVS variable from the DataStream ASSET 4 Database. Third, the research is novel because it indicates the crucial role of internal assurance mechanisms in wide managerial reporting practices in European companies. The sample consisted of European firms only, whereas previous studies used a global sample. Finally, this study is based on recent data (2010–2021), while other studies covered the period between 2008 and 2013.

Jumlah Rapat Komite Audit, Jumlah Dewan Direksi, dan Jumlah Dewan Komisaris terhadap Pengaruh Penerapan GCG pada Perusahaan Sektor Garmen dan Tekstil yang Terdaftar di Bursa Efek Indonesia (BEI) pada Tahun 2020-2021

This research aims to investigate the influence of the implementation of Good Corporate Governance (GCG), the number of audit committee meetings, the number of board of directors, and the number of board of commissioners on the financial performance of companies in the garment and textile sector listed on the Indonesia Stock Exchange (BEI) in the years 2020-2021. The indicators of GCG implementation are proxied by commitment, transparency, accountability, independence, responsibility, fairness, leadership, and vision-mission. Furthermore, financial performance is measured using Return on Assets (ROA). The research employs T and F statistical tests as the research methods. Based on the findings, it is revealed that the implementation of GCG, the number of audit committee meetings, the number of board of directors, and the number of board of commissioners, either partially or simultaneously, do not have a significant effect on the financial performance of companies in the garment and textile sector listed on the Indonesia Stock Exchange (BEI) in the years 2020-2021.

Pengaruh Corporate Governance, Financial Flexibility terhadap Earnings Quality Perusahaan Sektor Bank Indonesia

This study aims to analyze the effect of three characteristics of the audit committee, which are audit committee independence, audit committee size, and number of audit committee meetings, which are the implementation of corporate governance and financial flexibility, as independent variables, on earnings quality as the dependent variable. The population in this study are financial companies in the banking sector listed on the Indonesia Stock Exchange (IDX) for the period 2018–2022. This study uses a purposive sampling method, and the type of data collected in this study is a type of secondary data with the method of collecting documentation studies and literature studies. The data analysis method used in this study is multiple linear regression analysis, which has qualified classical assumption testing. The results of this study indicate that there is no significant impact of the variables of financial flexibility, audit committee independence, and size on earnings quality. Meanwhile, the variable number of audit committee meetings has a positive and significant impact on earnings quality, which, if implemented consistently, will increase earnings quality and reduce attempts to manipulate earnings by company management.

Analisis Pengaruh Karakteristik Komite Audit Dan Whistleblowing System Terhadap Potensi Terjadinya Fraud Pada Bumn Yang Terdaftar Di Bursa Efek Indonesia Periode 2020-2022

This study aims to examine the effect of audit committee independence, number of audit committee meetings, audit committee financial expertise and whistleblowing system on the potential for fraud. The study population is State-Owned Enterprises (SOEs) listed on the IDX in 2020-2022. Samples were determined by purposive sampling and 20 samples were obtained. The hypothesis in this study was tested using multiple linear regression. The results showed that the independence of the audit committee did not affect the potential for fraud. The number of audit committee meetings, audit committee financial expertise, and whistleblowing system affect the potential for fraud. The implications of this research can be useful as a consideration for companies in making policies related to the potential for fraud.

AUDIT COMMITTEE EFFECTIVENESS AS FRAUD PREVENTION MECHANISMS

This study aims to examine the effect of audit committee effectiveness on financial statement fraud. This research type is explanatory research. The research population is property and real estate sector companies listed on the Indonesia Stock Exchange (IDX) during 2020–2022. The sampling method used is a purposive sampling with a total sample of 141 annual reports. The data collection method used content analysis on annual report. This study used logistic regression analysis assisted by EViews13 software. The results showed that the effectiveness of the audit committee, proxied by financial expertise, accounting expertise, and the number of audit committee meetings had negative and significant effect on financial statement fraud. This study contributes by strengthening agency theory, where the findings prove that the effectiveness of the audit committee can overcome agency conflicts and minimize financial statement fraud. Practically, this research contributes to regulators to develop policies regarding the work guidelines of the audit committee as a supervisory body for the financial reporting process and to investors to be able to improve investment decision strategies by analyzing the audit committee structure as a party that ensures the reliability of financial statements which are the basis for corporate decision making.

Governance and Audit Quality: Can Improve Earnings Quality?

Purpose: This study aims to examine the effect of governance structure and audit quality on earnings quality. Methodology/Approach: 74 manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2011 to 2019 was selected using purposive sampling and used to test the hypotheses. The data was analyzed using OLS within multiple linear regression approach. Findings: Regression results showed independent commissioners and numbers of audit committee meetings improved earnings quality in large-sized manufacturing companies. This study also found that institutional ownership has no effect on earnings quality. Likewise, audit quality, as reflected by size of the public accounting firm, has no effects on earnings quality. Practical Implications: The results provide information about the importance of independent commissioners in keeping good earnings quality. These findings can be used either by the government or investors to strengthen the role of independent commissioners. Also, the government can regulate the minimum number of audit committee meetings to overcome low-income quality problems. Originality/value: This study proved that internal independence mechanism is the crucial one to attain a high level of earnings quality. Also, this study differentiates the effect of predictors by company’s size.

The Influence of Financial Risk, Characteristics of the Audit Committee, and the Independence of the Board of Commissioners on Audit Report Lag

This study aims to analyze the effect of financial risk, the characteristics of the audit committee, and the independence of the board of commissioners on audit report lag. The variables used to test the financial risk are profitability (return on assets) and leverage (debt to assets), while the variables to test the characteristics of the audit committee are the expertise of the audit committee, the number of audit committee meetings, and the size of the audit committee. The population of this study is the manufacturing sector companies listed on the Indonesia Stock Exchange for the period 2018-2020. The research sample used is as many as 132 manufacturing sector companies selected based on the purposive sampling method. The research method used is a quantitative method with panel data regression analysis. The results showed that profitability and the number of audit committee meetings had a significant negative effect on audit report lag, while leverage, audit committee expertise, audit committee size, and the independence of the board of commissioners had no effect on audit report lag.

Does corporate governance and profitability effect on corporate social responsibility disclosure?

Trust has a role in establishing successful business relationships, companies must be able to meet the needs of stakeholders. So that corporate governance mechanisms are needed. The CSR disclosure is a form of corporate responsibility to the community and the environmental aspect. Corporate governance in this study is examined in four separate variables, namely the tenure of directors, board size, independent commissioners, and managerial ownership. This study also analyzes the effect the profitability in increasing CSR disclosure level. The sample is 54 observation collected from companies listed on the IDX using the purposive sampling method. Multiple linear regression analysis is used. The results prove that board size, independent commissioners and profitability are able to increase the company's motivation to disclose CSR. While the tenure of directors and managerial ownership are not able to motivate in disclosing CSR. For further research, is expected to examine the characteristics of audit committees, institutional ownership and the number of audit committee meetings.

Audit Committee Effectiveness on Earnings Management

This study aims to determine the effect of the number of audit committee meetings and the size of the audit committee on earnings management in manufacturing companies listed on the Indonesia Stock Exchange in 2016, 2017, 2018 and 2019. Earnings management is measured by Discretionary Accruals using the Modified Jones Model. The population in this study were 160 manufacturing companies listed on the Indonesia Stock Exchange for the period 2016-2019. The research data were obtained from the annual reports of manufacturing companies for the period 2016 to 2019. Based on the purposive sampling method, the sample obtained was 40 companies. The hypothesis in this study was tested using multiple linear regression analysis. The results of the test show that the number of meetings and size of the audit committee has a significant effect on earnings management.

The Effect of Institutional Ownership and Characteristics of The Audit Committee on Corporate Risk Disclosure of Banks In Indonesia

This study aims to prove the effect of institutional ownership, and audit committee characteristics on corporate risk disclosure. The population used in this study is a Banking Company listed on the BEI during 2008-2020. The sampling technique used was purposive sampling and 161 samples were obtained that met the criteria. The analytical method used is multiple regression model. Based on the tested hypothesis, it proves that the institutional ownership and number of audit committee meetings have a positive effect on the corporate risk disclosure, while audit committee size have no effect on the corporate risk disclosure.

Pengaruh Good Corporate Governance Terhadap Internet Financial Reporting

The purpose of this study is to analyze how the influence of good corporate governance on disclosure of internet financial reporting (IFR). Good corporate governance in this study is proxied by the ownership structure (managerial ownership and public ownership), the characteristics of the board of commissioners (number of members of the board of commissioners and number of board meetings), and characteristics of the audit committee (number of members of the audit committee and number of audit committee meetings). The population in this study were all companies listed on the Indonesia Stock Exchange. Based on the purposive sampling method, the number of samples in this study were 392 companies. Testing the research hypothesis using multiple regression analysis. The test results show that the managerial ownership have a positive effect on disclosure of internet financial reporting. Meanwhile, the public ownership, the number of members of the board of commissioners, the number of board meetings, the number of members of the audit committee, and the number of audit committee meetings do not affect the disclosure of internet financial reporting.

Pengaruh Kualitas Auditor Internal dan Efektivitas Komite Audit terhadap Korupsi Di BUMN

This study aims at examining the effect of quality of internal auditors and the effectiveness of audit committees on corruption in State-Owned Enterprises (SOE). The quality of the internal auditors is proxied by the competence (experience, certification, training) and objectivity of the internal auditors. Meanwhile, the audit committee is proxied by size, independence, number of meetings, and expertise of the audit committee. The research method used is a quantitative method with the type of hypothesis testing research. The population of this study were state-owned enterprises listed on the Indonesia Stock Exchange (IDX) in 2016 - 2020. Sampling used purposive sampling and obtained a sample of 20 companies with a total of 100 observations over 5 years. This study uses secondary data obtained from the company's annual report. The internal auditor objectivity and audit committee independence were excluded from hypothesis testing, because they have constant values during the year of observation. Simultaneously the quality of internal auditors (experience, certification, training) and audit committee effectiveness (size, number of meetings, expertise) have a significant negative effect on corruption. Meanwhile, partially only the experience of internal auditors has a negative effect on corruption. Internal auditor certification, internal auditor training, audit committee size, number of audit committee meetings, and audit committee expertise have no effect on corruption.

FİRMA PERFORMANSININ DENETİM KOMİTESİ TİTİZLİĞİNE ETKİSİ

The aim of this research study is to determine the effect of firm performance on audit committee diligence. The research concentrates on the relationship between audit committee meeting frequency and firm age. In this regard, the data of 12 banks operating in the financial sector in the BIST over the period 2010-2021 are examined in the research study. The variables such as “the number of years since the establishment of the company”, “logarithm of total assets”, “debt to assets ratio”, “return on equity” and “return on assets” are used as independent variables; whereas “the number of audit committee meetings held during the year” is used as the dependent variable. Panel data analysis is conducted to consider the effect of firm age on audit committee meeting frequency. A regression model, which is established with the obtained data, is analyzed with the help of STATA software. The findings obtained from the analysis indicate that the firm age has a positive and statistically significant effect on the audit committee meeting frequency at the 1% significance level. The other independent variables have no statistically significant effect on the dependent variable. Consequently, this study indicates that the firm’s audit committee diligence is closely associated with its market experience and active operating process.

Moderation effects of multiple directorships on audit committee and firm performance: A middle eastern perspective

This study examines the moderation effects of audit committee members’ multiple directorships on the association between the number of audit committee meetings, attendance in the audit committee meetings and firm performance. A panel generalized least square method is used as the analysis tool, on the selected listed firms in the Saudi Arabian Stock Market (Tadawul). Empirical evidence suggests an inverse relationship between the number of audit committee meetings, audit committee meetings’ attendance and firm performance. As for the moderation effects of multiple directorships, a positive effect is documented. The results indicate that the multiple directorships by the audit committee members play a significantly positive role on firm performance in the Kingdom of Saudi Arabia (KSA). This study underwrites a middle eastern perspective on the relationship between the number of audit committee meetings and its attendance and the moderation effects of audit committee members’ multiple directorships on firm performance. The findings of this study provide valuable insights to policymakers and practitioners. The results should provide support to regulatory authorities to legislate effective regulations to make internal governance mechanisms work more effectively in the country.

Fraud at Islamic Commercial Banks in Indonesia is Seen in Good Corporate Governance (GCG) and a Whistle-Blowing System

This article discusses the dynamics of internal irregularities in Islamic commercial banks in Indonesia. This paper uses secondary data for 2017-2020, published annually by Islamic commercial banks. The sample of this study consisted of 10 Islamic commercial banks, which were determined based on the criteria and the availability of existing data. The data analysis is in the form of panel data regression analysis with the help of eviews and excels applications. This study indicates that partially the proportion of independent commissioners has a significant positive effect on fraud, and the variable number of audit committee meetings and the whistle-blowing system has no significant adverse effect on fraud. While simultaneously, the variable of good corporate governance with indicators of the proportion of independent commissioners, the number of audit committee meetings, and the whistle-blowing system have a significant positive effect on fraud in Islamic commercial banks in Indonesia for the 2017-2020 period.