Search results

1 – 10 of over 80000
Open Access
Article
Publication date: 20 September 2022

Victor Daniel-Vasconcelos, Maisa de Souza Ribeiro and Vicente Lima Crisóstomo

This study aims to investigate the association between the presence of a corporate social responsibility (CSR) committee and Sustainable Development Goals (SDGs…

Abstract

Purpose

This study aims to investigate the association between the presence of a corporate social responsibility (CSR) committee and Sustainable Development Goals (SDGs) disclosure, as well as the moderating role of gender diversity in this relation.

Design/methodology/approach

The sample consists of 897 annual observations from 238 firms from Argentina, Brazil, Chile, Colombia, Mexico and Peru for 2018–2020. The data were collected from the Refinitiv database. The proposed model and hypotheses were tested using the feasible generalized least squares estimation technique with heteroscedasticity and panel-specific AR1 autocorrelation.

Findings

The results reveal that the presence of CSR committees positively influences the SDGs. Gender diversity positively moderates the relationship between CSR committees and SDGs. Leverage and firm size also positively impact the SDGs. On the other hand, board size and CEO duality negatively affect SDGs disclosure.

Research limitations/implications

This study extends the scope of stakeholder theory by suggesting that CSR committees and gender diversity enable a better relationship for the firm with its stakeholders.

Practical implications

The findings support policymakers and managers in improving sustainability disclosure. In addition, the results demonstrate the importance of CSR committees and gender diversity to meet the stakeholders' demands.

Social implications

This study demonstrates how firms can improve sustainability issues through gender diversity and CSR committees.

Originality/value

To the best of the authors’ knowledge, this study complements previous literature by being the first to examine the moderating effect of gender diversity on the association between CSR committees and SDGs disclosure in the Latin American context.

Details

RAUSP Management Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2531-0488

Keywords

Article
Publication date: 23 September 2022

Bushra Komal, Bilal, Chengang Ye and Rami Salem

This paper aims to discuss the academic literature on the impact of audit committee effectiveness on different outcomes (accounting, auditing, governance and economics) in China.

Abstract

Purpose

This paper aims to discuss the academic literature on the impact of audit committee effectiveness on different outcomes (accounting, auditing, governance and economics) in China.

Design/methodology/approach

The authors have conducted a systematic review using the PRISMA guidelines.

Findings

The key finding is that the regulatory organisations in China, such as the China Securities Regulatory Commission (CSRC) and the State-Owned Assets Supervision and Administration Commission (SASAC), need to play the active role that is expected of them to enhance the transparency and independence of an audit committee. Also, Chinese listed companies are facing institutional barriers (CEO power, concentrated ownership and government influence) to effectively implement the imported concept within China. Research relating to the audit committee's effectiveness has focused mainly on agency and resource dependence perspectives.

Research limitations/implications

China’s regulatory bodies (CSRC and SASAC) should make necessary reforms to enhance the audit committee’s effectiveness. This study also provides implications for the other settings that have imported the audit committee concept from the Anglo-American countries.

Originality/value

This study contributes to the literature by synthesising the prior mixed findings on audit committee literature in China and providing suggestions to the regulators and future research.

Details

International Journal of Accounting & Information Management, vol. 30 no. 5
Type: Research Article
ISSN: 1834-7649

Keywords

Article
Publication date: 15 September 2022

Ali Uyar, Hany Elbardan, Cemil Kuzey and Abdullah S. Karaman

This study aims mainly to test the effect of audit committee independence and expertise attributes on corporate social responsibility (CSR) reporting, assurance and global…

Abstract

Purpose

This study aims mainly to test the effect of audit committee independence and expertise attributes on corporate social responsibility (CSR) reporting, assurance and global reporting initiative (GRI) framework adoption and to investigate how CSR committee existence moderates this main relationship.

Design/methodology/approach

The study uses a large global sample that includes all (59,172) firm-year observations having CSR-related data in the Thomson Reuters Eikon database for a period between 2002 and 2019. The empirical analyses are based on random-effects logistic panel regression and Hayes methodology for the moderation analysis.

Findings

The study finds that audit committee independence and expertise are significantly associated with CSR reporting, CSR report assurance and GRI framework adoption. Moderation analysis largely supports the existence of a substitution role between audit and CSR committees and implies that audit committees are significant predictors of CSR reporting, assurance and GRI framework adoption mostly in the absence of the CSR committee.

Practical implications

The findings propose audit committee members be extra-vigilant in CSR reporting and assurance practices arising from undertaking substitution roles with the CSR committee. Hence, firms may configure their corporate structure in line with the results such as augmenting the audit committee with independent and expert members if they do not constitute a CSR committee. If firms establish a CSR committee, audit committee members may allocate less time to CSR reporting and assurance and more time to financial reporting quality.

Originality/value

This is the first study, to the best of the authors’ knowledge, to investigate the direct and indirect effect of audit committees’ attributes not only on CSR disclosure but also on GRI implementation and CSR reporting external assurance, considering the CSR committee’s possible substitutability or complementarity moderating role. This research develops a deeper understanding of audit committees’ non-financial role.

Details

International Journal of Accounting & Information Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1834-7649

Keywords

Article
Publication date: 8 September 2022

Umar Habibu Umar, Abubakar Isa Jibril and Sulaiman Musa

This study aims to examine the effects of audit committee attributes on corporate philanthropic donations before and during the COVID-19 pandemic.

Abstract

Purpose

This study aims to examine the effects of audit committee attributes on corporate philanthropic donations before and during the COVID-19 pandemic.

Design/methodology/approach

The study targets Nigeria’s listed firms between 2019 and 2020. We hand-collected the data from the available published annual reports of 141 and 128 firms for 2019 and 2020, respectively. Therefore, the authors used a total of 269 firm-year observations for the study. The authors used ordinary least square regression to analyze the data and Tobit regression to establish the robustness of the results.

Findings

The results indicate that the frequency of audit committee meetings has a significant positive relationship with corporate philanthropic donations before and during COVID-19. In the case of audit committee independence, it has only a significant positive relationship with corporate philanthropic donations during the pandemic. However, the findings reveal that audit committee size and foreign directors on the audit committee do not influence corporate philanthropic donations before and during COVID-19.

Research limitations/implications

The study considers audit committee characteristics out of the corporate governance mechanisms that can influence the philanthropic donations of the listed firms in Nigeria over two years from 2019 and 2020.

Practical implications

The findings have practical implications for encouraging the audit committee to support philanthropic donations for the welfare of the poor and the needy, particularly in difficult times like the COVID-19 period. The results could also help regulators and policymakers to provide regulations and policies that can encourage firms to participate actively in philanthropic activities to their best ability.

Social implications

Motivating firms to provide philanthropic donations for the welfare of underprivileged persons could strongly support the government’s effort to minimize the socioeconomic problems caused by COVID-19.

Originality/value

The study contributes to the scant literature that establishes the impact of audit committee attributes on firm philanthropic donations toward helping the poor and the needy in difficult periods.

Details

Corporate Governance: The International Journal of Business in Society, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 30 August 2022

Ines Menchaoui and Chaima Hssouna

This study aims to analyze the relationship between a firm’s use of aggressive tax planning and board of directors (independence and size) and audit committee

Abstract

Purpose

This study aims to analyze the relationship between a firm’s use of aggressive tax planning and board of directors (independence and size) and audit committee characteristics (independence and expertise).

Design/methodology/approach

This study used archival data from 35 non-financial firms’ French firms listed on the CAC 40 over a period of 5 years (2013–2018).

Findings

This study shows that measures of board size are negatively related to tax aggressiveness. A broader board helps reduce tax aggressiveness, as having more members can improve board performance. Indeed, more members can contribute to a better assessment of tax risks and detect risky tax strategies.

Research limitations/implications

The main limitation of this study is the small sample. The authors limited the observations to 2018 because the corporate tax rate in France changed in 2019. Such a time window casts homogeneity on the current study. Examining universal registration documents, it has been noted that companies have only recently become interested in disclosure of tax risk.

Practical implications

Knowing the characteristics of the board and audit committees can give a signal to stakeholders about the potential risk bearing on aggressive tax planning. This study provides evidence that could help the board governance committees integrate the right profiles and to raise awareness among the members of the board of directors and the audit committee to play their role (monitoring function or advisory function) about tax risk management.

Originality/value

According to the authors’ knowledge, this study is the first to provide empirical evidence regarding the effect of the board of directors and audit committee characteristics on tax aggressiveness.

Details

EuroMed Journal of Business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1450-2194

Keywords

Article
Publication date: 15 July 2022

Maryam Firoozi and Michel Magnan

This study aims to investigate how audit committee members’ geographical location relative to corporate headquarters affects audit fees. The motivation for the paper rests…

Abstract

Purpose

This study aims to investigate how audit committee members’ geographical location relative to corporate headquarters affects audit fees. The motivation for the paper rests on the observation that regulatory and market trends have significantly affected the composition of boards of directors and audit committees. To ensure that audit committees play their monitoring role, regulations now require directors’ independence and some level of financial expertise. The need to find directors who meet these requirements, as well as the advent of globalization and technological improvements lead firms to expand their reach when looking for directors.

Design/methodology/approach

The authors use a sample of 1,517 firm-year observations of Canadian firms from 2008 to 2017. The study relies on multivariate analyses.

Findings

The results show that, among nonlocal audit committee members, the presence of foreign directors is associated with higher audit fees. In contrast, other nonlocal audit committee members do not have a differential impact on audit fees. This effect is more prevalent in large firms. Moreover, having a foreign chair of the audit committee as well as foreign audit committee members who are not accounting experts appear to accentuate the increase in audit fees. A possible explanation for the finding is that, from the supply side, auditors assign a higher risk to firms with a higher percentage of foreign audit committee members. Alternatively, from the demand side, firms with foreign audit committee members may ask for more audit effort. Further analysis indicates that having a higher percentage of foreign audit committee members is associated with a higher likelihood of restatements, an indication of low audit quality.

Originality/value

To the best of the authors’ knowledge, this study is the first to document that auditors price the location of audit committee members and consider it when planning for their audit.

Details

Managerial Auditing Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 12 August 2022

Mohammed Hassan Makhlouf

The current paper aims at exploring the audit committee characteristics’ effect on impression management.

Abstract

Purpose

The current paper aims at exploring the audit committee characteristics’ effect on impression management.

Design/methodology/approach

The methodology is based on the use of the content analysis of financial annual reports, as data of a 69-company sample study from 2015 to 2019 attained from “Amman Stock Exchange” has been analyzed. Moreover, multiple regression analysis on panel data was employed.

Findings

The results show that the independence of the audit committee, the financial expertise of the audit committee and female members negatively affect impression management, implying that these characteristics mitigate financial reporting manipulation and decrease the practices of impression management. However, the findings detect no significant influence for committee meetings on impression management.

Research limitations/implications

Notably, the current work is applicable and useful for understanding the audit committee’s role in enhancing the financial reporting’s quality, along with the significance of the audit committee in growing the stakeholder’s confidence in financial reporting. In light of these results, regulatory bodies’ efforts are encouraged to create additional strategies and instructions to ensure the trustiness and credibility of financial reporting.

Originality/value

This paper will be useful to companies that want to improve the quality of financial reporting and decrease the impression of management’s effect on financial reporting’s readers. Moreover, this paper contributes to the literature on impression management by exploring the effect of audit committees on impression management of annual financial reports of the users in the context of emerging markets and Middle East countries, particularly Jordan.

Details

EuroMed Journal of Business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1450-2194

Keywords

Article
Publication date: 11 July 2022

Zhongtian Li, Jing Jia and Larelle (Ellie) Chapple

This study aims to examine whether the sustainability committee, a specialized governance mechanism for environmental and social issues, is related to environmental…

Abstract

Purpose

This study aims to examine whether the sustainability committee, a specialized governance mechanism for environmental and social issues, is related to environmental performance. Specifically, the authors consider the presence and effectiveness of the sustainability committee.

Design/methodology/approach

Using a sample of Australian firms (2002–2016), the presence of a sustainability committee and sustainability committee effectiveness (consisting of 12 sustainability committee characteristics) are examined. Firms’ environmental performance is measured by Thomson Reuters Asset4 ratings.

Findings

The authors confirm prior findings of a positive relationship between the presence of a sustainability committee and the firm’s environmental performance. More importantly, sustainability committee effectiveness is found to be positively associated with environmental performance, indicating the active role that the composition and function of the sustainability committee plays in enhancing environmental performance.

Practical implications

The findings are of interest to directors and managers who are interested in improving firms’ environmental performance, in addition to investors and regulators who are concerned about environmental performance.

Originality/value

This study meaningfully expands the extant literature that studies the sustainability committee in at least three ways. First, the authors evidence the effect of an unexplored dimension of committee heterogeneity (sustainability committee effectiveness) by hand-collecting detailed information of sustainability committee members. Second, the authors distinguish from prior studies, in that the authors test the direct relationship between sustainability committee effectiveness and environmental performance. Third, by adopting different robustness tests of endogeneity along with sampling firms in various industries over 15 years, the authors offer more compelling and more comprehensive evidence in this regard. Broadly, the authors enrich the literature on corporate governance and environmental performance.

Details

Meditari Accountancy Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2049-372X

Keywords

Article
Publication date: 1 August 1995

Ian P. Dewing and Bernard C. Williams

Audit committees have a relatively long history dating back to thenineteenth century. It is only in recent years that their use has beenpopularized again in the private…

1833

Abstract

Audit committees have a relatively long history dating back to the nineteenth century. It is only in recent years that their use has been popularized again in the private sector. Fundamentally, it is often argued that audit committees exist to mediate between executive directors and auditors while providing an overall enhancement of corporate accountability. One of the recent effects of the drive to incorporate business methods into other sectors has been the establishment of audit committees. It does, however, pose the question of the role of these committees which are operating in a different context from their origins. Looks at the operation of audit committees in a defined sector, namely universities. Using a postal questionnaire, all directors of finance (or equivalent) in UK universities were surveyed to establish whether or not audit committees existed in their institutions, the purpose being to determine the extent of audit committees, the reasons why they have or have not been established, and the advantages and problems encountered with them. One interesting result that arose with implications for accountability and governance was that in universities the stewardship and strategic policy‐making functions are generally separate and that audit committees report only on the former. This is in contrast to the situation in the private sector where both functions are generally combined in the activities of the board of directors. Because there is considerable overlap between the membership of audit committees and the boards of directors, it could be argued that this provides the potential for a greater degree of accountability and governance than currently exists in universities.

Details

Managerial Auditing Journal, vol. 10 no. 6
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 1 August 2003

Zabihollah Rezaee, Kingsley O. Olibe and George Minmier

An increasing number of earnings restatements along with many allegations of financial statement fraud committed by high profile companies (e.g. Enron, WorldCom, Global…

15295

Abstract

An increasing number of earnings restatements along with many allegations of financial statement fraud committed by high profile companies (e.g. Enron, WorldCom, Global Crossing, Adelphia) has eroded the public confidence in corporate governance, the financial reporting process, and audit functions. The Sarbanes‐Oxley Act of 2002 was an attempt to regain confidence and trust in corporate America and the accounting profession. The Act addresses corporate scandals and the perceived crisis in the auditing profession. Some of its provisions relate to the audit committee oversight function over corporate governance, financial reporting, internal control structure, internal audit functions, and external audit services. This study examines three types of audit committee disclosures: the annual report of the audit committee; reporting of the audit committee charter in the proxy statement at least once every three years; and disclosure in the proxy statement of whether the audit committee had fulfilled its responsibilities as specified in the charter. This study conducts a content analysis on audit committee disclosures of Fortune 100 companies.

Details

Managerial Auditing Journal, vol. 18 no. 6/7
Type: Research Article
ISSN: 0268-6902

Keywords

1 – 10 of over 80000