Audit committee effectiveness, internal audit function, firm-specific attributes and internet financial reporting: a managerial perception-based evidence
Journal of Financial Reporting and Accounting
ISSN: 1985-2517
Article publication date: 7 February 2022
Issue publication date: 20 November 2023
Abstract
Purpose
This study aims to examine the contribution of audit committee effectiveness (ACE), internal audit function (IAF) and firm-specific attributes to internet financial reporting (IFR). It also seeks to understand which ACE and IAF attributes contribute to variances in IFR.
Design/methodology/approach
Data are collected through a questionnaire survey of 40 financial services firms.
Findings
The analysis shows that ACE and IAF significantly contribute to positive variances in IFR. It also shows that among the firm-specific attributes, only capital structure significantly contributes to positive variances in IFR. Audit committee meetings and authority contribute significantly to positive variances in IFR unlike audit committee expertise and independence. In terms of the IAF attributes, the risk management role and the regulatory compliance role contribute significantly to positive variances in IFR as compared to the governance processes role and evaluation of the internal control role.
Originality/value
This study enhances our understanding of the relationship between ACE, IAF, firm-specific attributes and IFR in an environment where IFR is not mandated and where corporate governance practices are very much in infancy. This is especially so given that for the first time, to the best of the authors’ knowledge, the contribution made by ACE, IAF and firm-specific attributes in IFR using evidence from an African developing country (Uganda) is now documented in a single study.
Keywords
Citation
Bananuka, J. and Nkundabanyanga, S.K. (2023), "Audit committee effectiveness, internal audit function, firm-specific attributes and internet financial reporting: a managerial perception-based evidence", Journal of Financial Reporting and Accounting, Vol. 21 No. 5, pp. 1100-1123. https://doi.org/10.1108/JFRA-07-2021-0198
Publisher
:Emerald Publishing Limited
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