Audit Committee Size Research Articles

Investigating the Nexus between Corporate Governance and Firm Performance in India: Evidence from COVID-19

The COVID-19 pandemic has had a dreadful influence on both economic activities and human life, in view of which management has to play a strategic role to focus on effective board leadership in order to optimize firm performance. The present study analyses the role of corporate governance practices in determining firm performance during the pandemic. A total of 151 non-financial companies from 11 diversified industries representing the NIFTY200 index for two years, 2019–2020 (pre-COVID-19) and 2020–2021 (duringCOVID-19), were selected. Paired sample t-tests, panel data regression, and one-way ANOVA were used for the analysis. The findings confirm that there is a significant difference between some corporate governance practices (board size, board independence, board’s female proportion, board attendance, and audit committee size) as well as financial performance (Tobin’s Q) before and during the COVID-19 period. The regression results of the full sample show that only board busyness has a positive and significant impact on ROA and Tobin’s Q. However, after splitting the sample year-wise, board size and audit committee meetings positively affected ROA during COVID-19. On the other hand, board independence had a negative influence. Female directors and audit committee meetings positively affected ROA in the pre-COVID-19 period, while board busyness had a negative influence. The results of one-way ANOVA show a substantial difference in the financial performance among industries.

Determinants Of Corporate Profit Management In Jakarta Islamic Index Mediated By Company Performance

Corporate earnings management is an essential issue in business entities. The fact reveals that users of financial statements are more focused on what is stated in the financial statements rather than how the profit process is obtained. This study analyzes and shows the factors influencing company earnings management in the Jakarta Islamic Index (JII) for the 2016-2020 period. Company performance is used as an intervening variable. This research uses a quantitative approach with secondary data in the form of panel data. The research population is all companies in the Jakarta Islamic Index (JII) for the 2016-2020 period, namely 30 companies. The sampling technique is purposive sampling, and 13 company samples were obtained. Data analysis technique using multiple linear regression and path analysis. The results showed that the independence of the audit committee, audit committee meetings, and company size positively and significantly affect earnings management. The audit committee size does not affect earnings management. Audit committee independence, audit committee size, and audit committee meeting do not affect company performance. Firm performance cannot mediate the effect of audit committee independence, size, and meetings on earnings management. This research can complement existing theory and be a reference for companies in improving performance and earnings management.

The Moderating Effect of the COVID-19 Pandemic on the Relation between Corporate Governance and Firm Performance

The present study aims to investigate the association between corporate governance mechanisms and financial performance among companies listed on the Tehran Stock Exchange (TSE). We also want to know if the COVID-19 global crisis moderates the relationship between them. The study sample consists of 1098 observations and 183 companies listed on the TSE from 2016 to 2021; furthermore, the statistical method used to test the hypotheses is panel data with random effects. In line with our expectations, the results show that the coronavirus pandemic worsened Iranian corporate performance. In support of agency theory, we figure out that board independence, board meeting frequency, and board financial expertise are correlated positively with firm value. In favor of resource dependency theory, this study finds robust evidence that audit committee size and independence have a positive effect on corporate performance. Most importantly, the positive linkage between board independence, board financial expertise, size, and independence of audit committee with firm performance was reversed during the COVID-19 pandemic, although the positive role of board meeting frequency in corporate profitability remained stable even during the COVID-19 outbreak. Furthermore, the outcomes indicate that CEO duality affects firms negatively, and this devastating effect became even stronger with the COVID-19 pandemic. Finally, we find that firms involved in mergers and acquisitions (M&A) managed to increase shareholders’ wealth using competitive advantage even during the pandemic.

Corporate Governance Factors On Audit Report Lag

This research aims to determine the effect of committee size, committee meetings, audits, the proportion of independent commissioners, the board size, and company size on audit report lag. The research population is companies that are members of the Jakarta Islamic Index for 2017-2019. Determination of the sample using purposive sampling technique, with predetermined criteria, to obtain 45 samples. This research is quantitative research whose data sources use secondary data originating from documentation in the form of company annual reports and literature. The analysis technique in this research uses a multiple linear regression approach. The research results show that audit committees and company size do not affect audit report lag. Audit committee meetings, the proportion of independent commissioners, and the size of the board of directors partially have a positive and significant effect on audit report lag. Audit committee size, audit committee meetings, the proportion of independent commissioners, board of directors size, and company size significantly affect audit report lag. This theory research can complement existing research results; then, it can be used as a reference for auditors in managing the period in conducting audits.

Audit Committee and Audit Report Lag: Moderating Role of Ownership Concentration of Listed Consumer Goods Firms in Nigeria

This study examines the moderating role of ownership concentration on the effect of audit characteristics on audit report lag of listed consumer goods firms in Nigeria. The ex-post facto research design was adopted, secondary data was extracted from annual reports and accounts of listed consumer goods firms in Nigeria. The population of the study is twenty-one (21) and the sample size consist of fifteen (15) for ten years (2012-2021). Six (6) companies were flitter out from the study due the technical suspension by NXG during the period of study. Census sample techniques were adopted. PCSEs regression model was employed as technique of data analysis. The findings of the study revealed that the Audit Committee Size (ACS) and Audit Committee Meeting have a positive and significant effect on Audit Report Lag (ARL). Also, the Audit Committee Financial Expertise (ACFE) revealed a positive and insignificant effect on Audit Report Lag (ARL), while the Audit Committee Independence is established to have a negative and insignificant effect on Audit Report Lag (ARL). However, with consideration of moderating role ownership concentration, the Audit Committee Size (ACS) and Audit Committee Meeting (ACM) is found to have significant negative effect on Audit Report Lag (ARL), while the Audit Committee Financial Expertise and Audit Committee Independence are found to have a positive and insignificant effect on Audit Report Lag (ARL). The study concludes that ownership concentration moderates the effect of audit committee on Audit Report Lag. The study recommended that the management of the study firms should continue to sustain the frequency of meetings and size or numbers of the committee in their respective audit committee since the two committee have been empirically proven to have significantly reduced the timeframe of reporting their financial reports.

Implementasi Perubahan Peraturan mengenai Pembebasan Bea Masuk dan Pajak Impor pada Usaha Mikro Kecil dan Menengah

This study aims to examine the effect of the characteristics of the board of directors and audit committee on real earnings management. Three measurements are used to measure real earnings management, namely abnormal cash flow from operations, abnormal discretionary expenses, and abnormal production costs. Company management can manipulate operational activities such as sales, reduce discretionary costs, and manipulate production levels excessively. Using purposive sampling method, this study uses a total of 98 observation of manufacturing companies that are listed on the Indonesia Stock Exchange during 2017 to 2021. The data collected will be tested with the help of Eviews software. The data analysis methods used in this study include descriptive statistical analysis, panel data regression test, and hypothesis testing. The results of this study reveals that audit committee size variable hasa significant positive effect on real earnings management, while the board of directors size variable, board of directors independence, board of directors meetings, audit committee independence, audit committee meetings, and audit committee expertise do not affect real earnings management.

Investigating earnings management practices and the role of the board and committees in emerging markets: Evidence from Malaysian public companies

AbstractThis study was aims to examine the significant elements of the audit and board committee in predicting earnings management (EM) for the period of 2010–2021. The study population comprised total number of 775 listed firms on Bursa Malaysia's main market. The annual audited financial statements and reports of the listed firms, firm's websites, Bloomberg and the Bursa Malaysia website were used as method of data collection. The analytical method used in the current study was descriptive statistic and GLS methods of panel regression. The findings of this study suggested that firms with effective CG mechanisms such as, audit committee size (AUDSIZ), audit committee financial expertise (AUDFEXPT), remuneration and nomination committee (R&NC), supervisory board size (SBS), mitigates accrual, and REM. However, the findings also indicated that gender composition (CGEND) were found to be ineffective in predicting EM.

Influence of corporate characteristics and Good Corporate Governance toward the risk management disclosure

This research study aims to obtain empirical evidence to the influence of company characteristics (firm size, profitability, leverage and liquidity) and good corporate governance (audit committee, board size, and public ownership structure) toward the risk management disclosure. This research study uses the Index of Enterprise Risk Management (IERM) as the parameter of risk management disclosure. This research study uses secondary data, the population of Property and Real Estate companies listed on the Indonesia Stock Exchange (IDX) in 2013-2015. The sampling technique was conducted using purposive sampling, which produces 70 listed companies’ samples during the years of observation. The analytical method of this study uses multiple regression analysis of Econometric views 8. This research study concludes that partial testing shows that firm size, audit committees and board size are positively and significantly related to risk management disclosure. Profitability, leverage, liquidity have no significant influence on risk management disclosure. Hypothesis testing uses multiple linear regressions. Data are obtained using Eviews version 8 software application. Data analysis model done with multiple regression model aiming to examine the influence of audit committee size, board of commissioner size, firm size, profitability, and leverage toward risk management disclosure Based on the research study result that has been analyzed statistically using multiple linear regressions, it can be concluded that variables of firm size, leverage, audit committee, and board of commissioner size positively and significantly affect corporate risk management disclosure. Meanwhile, variables of profitability, liquidity, and public ownership do not positively and significantly affect risk management disclosure.

Audit Company Performance : The Impact of Ownership Structure and Committee

Abstract
 This study aims to analyze the impact of management ownership, institutional ownership, foreign ownership, audit committee size, meeting frequency, and ownership on corporate performance. The relationship between ROA and Tobin's Q is used to gauge company performance. The manufacturing businesses registered on the Indonesia Stock Exchange in 2019–2021 make up the study's population. 44 businesses were sampled using the principles of purposive sampling. Multiple linear regression analysis was performed for data analysis. The findings demonstrated that, when considering ROA rather than Tobin's Q, the size of the audit committee had an impact on corporate performance. Both corporate performance metrics are impacted by the volume of audit committee sessions. Managerial ownership has an impact on company performance when Tobin's Q is used to measure performance rather than ROA, which has no effect. While it has no impact on company performance when using Tobin's Q measurement, institutional ownership has an impact on ROA-based measures of firm performance. Foreign ownership has no impact on firm performance as assessed by ROA, but it does have an impact on firm performance using Tobin's Q measurement.
 Keywords: size of the Audit Committee, Audit Committee meetings, managerial ownership, institutional ownership, foreign ownership, earnings quality

Analysis of The Effect of Company Characteristics and Corporate Governance on Tax Aggressiveness: Before and During The Covid-19 Pandemic (Empirical Study of Manufacturing Companies Listed on The Indonesia Stock Exchange Period 2019-2020)

This study aims to analyze the effect of company characteristics and corporate governance on tax aggressiveness before and during the Covid-19 pandemic. The independent variables of this study are the company characteristics (profitability, capital intensity, inventory intensity, and company size) and corporate governance (independence the board of commissioners and audit committee size). The dependent variable of the study is tax aggressiveness measured using the Effective Tax Rate (ETR). The population of this study are manufacturing companies listed on the Indonesia Stock Exchange period 2019-2020. The sampling method used was purposive sampling and obtained a total sample of 176 firm-years of observation with certain criteria. This study uses multiple regression analysis and chow test with SPSS 25 software. Based on results of the t-test, there was a positive effect profitability on tax aggressiveness before and during the pandemic, there was a positive effect company size on tax aggressiveness before the pandemic, there was a negative effect audit committee size on tax aggressiveness before and during the pandemic. However, it is not proven company size had an effect on tax aggressiveness during the pandemic. Meanwhile, capital intensity, inventory intensity, and independence the board of commissioners have not been shown an impact on tax aggressiveness before and during the pandemic. Then, the findings chow test found there was no difference effect of the six independent variables on tax aggressiveness before and during the pandemic.Keywords: company characteristics, corporate governance, tax aggressiveness

The influence of corporate governance factors on intellectual capital performance: Panel data evidence from the Indian banking sector

This study empirically examined the relationship between corporate governance factors, namely CEO duality, independent directors, board meeting frequency, board size, gender diversity, audit committee size and audit committee meetings, and intellectual capital performance. The above premise is studied using data of 26 commercial banks listed on the Indian Stock Exchange (NSE) from 2010 to 2020. The study used purposive sampling as the methodology and multiple regression models with VAIC and ROA as attributes. VAIC measures the efficiency of intellectual capital. ROA is used to determine financial performance. The results of the study reveal that the use of observational data, independent directors, frequency of board meetings and audit committee size has a positive and significant effect on intellectual performance at a 10% significance level. According to the study’s findings, audit committee meetings have a positive impact on intellectual capital performance at a 1% significance level, while board size has a negative impact at a 5% significance level. Among the study results, CEO duality, board meeting frequency and board size have a positive and significant effect on financial performance with 1% significance. Board gender diversity has a negative impact on financial performance. The study’s findings indicate that there is no single best way to design corporate governance that applies to all corporate situations, and that good corporate governance factors have a significant impact on improved intellectual capital performance.

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.

Pengaruh Good Corporate Governance Terhadap Kinerja Keuangan Dan Nilai Perusahaan

There is an awareness that companies that apply the principles of good corporate governance can improve financial performance and company value. The implementation of good corporate governance can help improve transparency, accountability, and company compliance with applicable regulations. This can help reduce the risk of company failure and increase investor confidence. This study aims to examine the effect of good corporate governance as measured by the size of the board of directors, independent board of commissioners, and the size of the audit committee on financial performance and company value in state-owned companies for the period 2018 to 2020. The purposive sampling method was used to select 20 companies as research samples with a total data sample of 60 data for 3 years. The results showed that the size of the board of directors had a significant positive effect on financial performance and a significant negative influence on company value, while the independent board of commissioners had a significant negative effect on financial performance and a significant positive influence on company value. The size of the audit committee has no effect on the financial performance and value of the company. Financial performance also affects the value of the company positively and significantly.
 From the results of the study, it can be concluded that the implementation of Good Corporate Governance, especially on the size of the board of directors and independent board of commissioners, affects financial performance and company value. This study provides strong empirical evidence on the importance of implementing Good Corporate Governance in improving corporate performance and value. However, further research is still needed to evaluate other factors that can affect company performance and value.
 Keywords : Good Corporate Covernance, Board of Directors Size, Independent Board of Commissioners, Audit Committee Size, Return On Asset (ROA), Price to Book Value Ratio (PBV).

Corporate Governance Practices and Financial Distress: Empirical Evidence from Listed Companies in Sri Lanka

The study aims to investigate the impact of corporate governance on financial distress of listed companies in Sri Lanka. Board size, board composition, CEO duality, board meeting, director ownership, and audit committee size are proxies for corporate governance while financial distress is measured by the Altman Z-score. Altman Z-score measures financial distress inversely and bigger the Z-score indicates the smaller the risk of financial distress. Using hundred and eight individual observations of firms listed in Sri Lanka for the period of 2019 to 2021 and employing fixed effects model, the effect of corporate governance practices on financial distress is evaluated. The results from panel data regression analysis reveal that firms having large number of directors on the board have a low likelihood of financial distress of listed companies in Sri Lanka. Furthermore, when a chief executive officer serves as the chairman of the board at a company, the more likely it is that the company will experience financial distress. But, board composition, audit committee size, board meeting and director ownership have not shown any significant impact on financial distress. The current study also provides evidence that firm-specific characteristics such as firm size, leverage and profitability, could be useful as to determining the likelihood of financial distress. The findings may be of prominence to the academic researchers, practitioners, and regulators who are interested in discovering the quality of corporate governance practices in a developing market and its impact on financial distress.

Board Structure and Financial Reporting Quality in Quoted Non-Financial Firms in Nigeria

This study investigated board structure and financial reporting quality among quoted non-financial companies in Nigeria. The broad objective was to determine the relationship between, board independence, board expertise, board meetings and audit committee size and financial reporting quality among quoted companies in Nigeria. The study employed ex-post facto research design, covering a period of six years (2013 to 2018). The population size is one hundred and fourteen (114) non-financial companies in Nigeria, while fifty-nine (59) quoted companies constituted the sample size. Content analysis of financial statements of sampled companies were carried out and data were analysed using descriptive and inferential statistics, like correlation matrix and panel least square regression. The study found that board independence, board expertise and audit committee size have significant and positive relationship with financial reporting quality, which by implication, board independence, board expertise and audit committee size were critical factor enhancing financial reporting quality among quoted companies in Nigeria. The research also found board meetings to have negative relationship with financial reporting quality.The study recommended that board of companies should consists of more independence board members made up of male and female with professional financial expertise capable of enhancing financial reporting quality. Keywords: Board independence, Board expertise, Board meeting, Audit committee size, financial reporting quality, Panel Least Square Regression

Pengaruh Good Corporate Governance Terhadap Kinerja Keuangan Dan Nilai Perusahaan

There is an awareness that companies that apply the principles of good corporate governance can improve financial performance and company value. The implementation of good corporate governance can help improve transparency, accountability, and company compliance with applicable regulations. This can help reduce the risk of company failure and increase investor confidence. This study aims to examine the effect of good corporate governance as measured by the size of the board of directors, independent board of commissioners, and the size of the audit committee on financial performance and company value in state-owned companies for the period 2018 to 2020. The purposive sampling method was used to select 20 companies as research samples with a total data sample of 60 data for 3 years. The results showed that the size of the board of directors had a significant positive effect on financial performance and a significant negative influence on company value, while the independent board of commissioners had a significant negative effect on financial performance and a significant positive influence on company value. The size of the audit committee has no effect on the financial performance and value of the company. Financial performance also affects the value of the company positively and significantly.
 From the results of the study, it can be concluded that the implementation of Good Corporate Governance, especially on the size of the board of directors and independent board of commissioners, affects financial performance and company value. This study provides strong empirical evidence on the importance of implementing Good Corporate Governance in improving corporate performance and value. However, further research is still needed to evaluate other factors that can affect company performance and value.
 Keywords : Good Corporate Covernance, Board of Directors Size, Independent Board of Commissioners, Audit Committee Size, Return On Asset (ROA), Price to Book Value Ratio (PBV).

Characteristics of the Board of Commissioners, Financial Performance and Audit Quality on Earnings Management

Purpose: To examine the influence of Board of Commissioners Size, Independent Commissioners, Board Financial Expertise, Audit Committee Size, Audit Committee Independence, Audit Committee Basic Expertise in Finance and Accounting, Leverage, KAP Size, and Company Size. The Dependent Variable is Profit Management in manufacturing companies listed on the Indonesian Stock Exchange. Research Methodology: The samples used in this study were 73 manufacturing companies listed on the Indonesia Stock Exchange for the 2018-2020 period, with a total of 219 samples. The analytical tool used to analyze the hypothesis is Eviews 10. Results: The results show that the size of the Board of Commissioners, Independent Commissioners, and Leverage have a positive effect on Earnings Management. The Board of Commissioners' Financial Expertise and KAP Size have no effect on Earnings Management. Audit Committee Size, Audit Committee Independence, Audit Committee Financial Expertise and Company Size have a negative effect on Profit Management. Limitations: This research sample uses manufacturing companies for the 2018-2020 period. Which is relatively small compared to the increase in years and other sectors. Contribution: This research has important implications for preventing or at least being able to detect financial statement manipulation by management which can result in reduced integrity of a financial report.

CORPORATE GOVERNANCE AND ITS IMPACT ON MARKET RETURN AND MARKET CAPITALIZATION IN BANKING SECTOR OF PAKISTAN

This study investigated the influence of corporate governance practices on bank market return and market capitalization in Pakistan. A sample of 19 commercial banks was selected using a simple random sampling method, and data was collected from 2010 to 2020. The study employed pooled OLS, Fixed Effect, and Random Effect models to analyze the relationship. The findings revealed mixed results concerning the impact of corporate governance variables on market return. The regression results highlight the influential role of director compensation and audit meetings on market capitalization, revealing a significant positive correlation with higher firm values. In contrast, variables such as board size, board composition, independent directors, and audit committee size and independence exhibit a lack of statistical significance in their impact on market capitalization. Moreover, board independence demonstrates statistical significance solely under the pooled OLS and Fixed Effect models. Similarly, variables including board size, board composition, director compensation, audit committee meeting frequency, and audit independence display no significant association with market return. These findings align with previous research in the field.

THE EFFECT OF CLIENT BUSINESS COMPLEXITY, AUDIT COMMITTEE SIZE, AND AUDITOR SPECIALIZATION ON AUDIT REPORT LAG

This research is a quantitative study that aims to examine the effect of client business complexity, auditor Speialization, and audit committee size on Audit Report Lag. This study uses audited financial report data for energy sector companies listed on the Indonesia Stock Exchange (IDX) for 2018-2020. By using a purposive sampling technique, 75 sample data were obtained from 37 companies in the energy sector. This study uses panel data regression analysis. The results of this study indicate that internal factors such as client business complexity, audit committee size and external factors, namely auditor Spesialization, have no effect on audit report lag. This shows that during the pandemic, the huge decline in profits was the most important problem and these companies were reluctant to convey this bad news. In addition, auditors also need more time to assess the company's going concern during the pandemic.
 Keywords: Audit Report Lag, Client Business Complexity, Auditor Spesialization,Audit Committee Size, Covid-19 pandemic