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1 – 10 of 20
Article
Publication date: 30 October 2018

Murad Abdulsalam Qamhan, Mohd Hassan Che Haat, Hafiza Aishah Hashim and Zalailah Salleh

This paper aims to examine the association between new audit committee characteristics – attendance of audit committee members at meetings and changes of members through the…

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Abstract

Purpose

This paper aims to examine the association between new audit committee characteristics – attendance of audit committee members at meetings and changes of members through the demission or appointment of members of the audit committee during the year – and earnings management. Its objective is to contribute new evidence that extends studies on audit committee characteristics in reducing earnings management.

Design/methodology/approach

The sample comprises 370 observations obtained from the annual reports of 74 companies listed on the Muscat Securities Market for the years 2008-2012. The panel data are analysed using a fixed effects model to validate the hypotheses and model.

Findings

This study finds a negative association between earnings management and members’ attendance at the audit committee meetings. Additionally, there is a positive significant relationship between earnings management and changes to members through demission or appointment.

Originality/value

This study broadens the scope of audit committee characteristics by providing empirical evidence of the relationship between new audit committee characteristics and earnings management and may assist policymakers and regulators in determining ways to enhance audit committee characteristics and improve financial reporting quality.

Details

Managerial Auditing Journal, vol. 33 no. 8/9
Type: Research Article
ISSN: 0268-6902

Keywords

Open Access
Article
Publication date: 18 May 2023

Ahmed Elmashtawy, Mohd Hassan Che Haat, Shahnaz Ismail and Faozi A. Almaqtari

The main aim of the present study is to assess the moderating effect of joint audit (JA) on the relationship between audit committee effectiveness (ACEFF) and audit quality (AQ…

1927

Abstract

Purpose

The main aim of the present study is to assess the moderating effect of joint audit (JA) on the relationship between audit committee effectiveness (ACEFF) and audit quality (AQ) in Egypt.

Design/methodology/approach

The sample included 61 non-financial corporations listed on the Egyptian Exchange from 2016 through 2020. The results are estimated using panel data analysis with fixed-effect models.

Findings

The findings exhibit that audit committee (AC) independence, ACEFF; and audit firm size negatively affect AQ. Conversely, the influence of AC meetings on AQ is positive and significant. The findings also reveal that JA moderates the relation between the ACEFF and AQ.

Research limitations/implications

The study offers theoretical contributions to corporate governance mechanisms, JA; and AQ by using data from listed firms in Egypt. The study is the first one that examines the moderating role of JA on ACEFF and AQ.

Practical implications

The study has practical implications for investors, board members, practitioners, academicians; and policymakers. Moreover, the study contributes using a composite measure for the ACEFF score.

Originality/value

The findings, supported by agency, resource dependence; and signaling theories, contribute to a better understanding of the relationship between ACEFF, AQ; and JA. The evidence about JA is still unknown in developing countries. Further, revisiting AQ with different measures, particularly accounting conservatism, has not been a subject of prior studies.

Details

Arab Gulf Journal of Scientific Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-9899

Keywords

Book part
Publication date: 9 November 2023

Yeni Priatnasari, Djoko Suhardjanto, Agung Nur Probohudono and Setyaningtas Honggowati

Risk reporting in financial reports has a positive impact on the company and its stakeholders. The purpose of this research is to present a literature review using the…

Abstract

Risk reporting in financial reports has a positive impact on the company and its stakeholders. The purpose of this research is to present a literature review using the bibliometric method with the title we used is Risk Reporting, and the keywords are risk disclosure, risk reporting, stakeholders, and stakeholder theory. Data processing in this chapter uses Publish or Perish (PoP) software and Vos Viewers. This study uses the Google Scholar database. The researcher scanned the journal by using Scimagojr.com to view the journal quartile. Before the search was revised, there were 230 papers from 1991 to 2021 (30 years). Researchers will see the development of risk reporting from several sides, such as the country of origin of the researcher, the type of industry that reports risk, the research methods that have been used so far, and the analysis used for reporting risk.

Details

Macroeconomic Risk and Growth in the Southeast Asian Countries: Insight from SEA
Type: Book
ISBN: 978-1-83797-285-2

Keywords

Article
Publication date: 5 September 2008

Mohd Hassan Che Haat, Rashidah Abdul Rahman and Sakthi Mahenthiran

The paper aims to examine the effect of good corporate governance practices on corporate transparency and performance of Malaysian listed companies.

18047

Abstract

Purpose

The paper aims to examine the effect of good corporate governance practices on corporate transparency and performance of Malaysian listed companies.

Design/methodology/approach

Samples were selected using matched‐sampling method and hierarchical regression was employed to test the relationship between among corporate governance mechanism, transparency and performance.

Findings

Corporate governance factors have a strong predicting power on company performance, mainly due to debt monitoring and foreign ownership. However, there is a significant negative relation between audit quality and performance. The results find that performance is not associated with the level of disclosure and timely reporting. The results indicate that disclosure and timeliness are not significant contributing factors in the relationship between corporate governance and market performance.

Research limitations/implications

The data covers a one‐year period of 2002 only. This paper deals only with “one‐way” causality running from corporate governance mechanisms to performance, even though, there is evidence of “reverse‐way” and “two‐way” causality in governance literature.

Practical implications

This paper indicates that internal governance mechanisms are not important determinants to corporate performance. However, governance in forms of debt monitoring and foreign ownership have significant influence on corporate performance. Transparency (i.e. disclosure and timeliness of reporting) is not a significant mediating variable between corporate governance and performance.

Originality/value

Distinct from previous empirical research as the disclosure level is measured using self‐designed corporate governance index. Apart from a study conducted in an Asian setting of Malaysia, the study also tests transparency as a mediating variable between corporate governance and performance

Details

Managerial Auditing Journal, vol. 23 no. 8
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 1 January 2009

Azlan Amran, Abdul Manaf Rosli Bin and Bin Che Haat Mohd Hassan

The purpose of this paper is to explore the availability of risk disclosures in the annual reports of Malaysian companies by focusing on the non‐financial section of the reports…

12569

Abstract

Purpose

The purpose of this paper is to explore the availability of risk disclosures in the annual reports of Malaysian companies by focusing on the non‐financial section of the reports. In addition, the paper aims to empirically test the sampled companies' characteristics and to compare the levels of risk faced by these companies with the disclosures made.

Design/methodology/approach

The method used in this study is content analysis. A total of 100 listed companies' annual reports were analyzed in order to trace the extent of risk disclosure and the relationship against firm characteristic and diversification strategy were tested. Stakeholder theory was used in explaining the linkages between the variables.

Findings

The total number of sentences dedicated for discussion of risk information by the sampled Malaysian companies is very much less when compared to a 2006 study done by Lisley and Shrives in the UK. Size does matter and proven significant by the regression results. This finding is expected and explainable from stakeholder theory.

Research limitations/implications

Future research is encouraged to look deeper into the different variables that may be involved. The development of a local risk measurement checklist will help researchers to better reflect on the findings in the local context.

Practical implications

Findings in regards of the current state of risk disclosure should be of concern to relevant reg ulatory bodies.

Originality/value

This paper provides an initial understanding of risk management disclosure practices in Malaysia. The government, through various relevant parties, should devise the means to enhance companies' involvement in risk management disclosure practices.

Details

Managerial Auditing Journal, vol. 24 no. 1
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 11 February 2021

Satish Kumar, Nitesh Pandey, Bruce Burton and Riya Sureka

The Managerial Auditing Journal (MAJ) started publication in 1986 and celebrates its 35th year of publication in 2020. The purpose of this study is to provide a detailed…

Abstract

Purpose

The Managerial Auditing Journal (MAJ) started publication in 1986 and celebrates its 35th year of publication in 2020. The purpose of this study is to provide a detailed bibliometric analysis of the journal’s primary trends and themes between 1986 and 2019.

Design/methodology/approach

This study uses the Scopus database to analyse the most prolific authors in the MAJ along with their affiliated institutions and countries; the work also identifies the MAJ articles cited most often by other journals. A range of bibliometric devices is applied to analyse the publication and citation structure of MAJ, alongside performance analysis and science mapping tools. The study also provides a detailed inter-temporal analysis of MAJ publishing patterns.

Findings

The MAJ publishes around 40 articles each year with citations of this work steadily growing over time. The journal has attracted contributors from around the globe, most often affiliated with the USA, the UK and Australia. Thematic evolution of the journal’s themes reveals that it has expanded its scope to include topics such as internal auditing, internal control and corporate governance, whilst co-authorship analysis reveals that the journal’s collaboration network has grown to span the globe.

Research limitations/implications

As this study uses data from the Scopus database, any shortcomings therein will be reflected in the study.

Originality/value

This study provides the first overview of the MAJ’s publication and citation trends as well as the evolution of its thematic structure. It also suggests future directions that the journal might take.

Details

Managerial Auditing Journal, vol. 36 no. 2
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 4 April 2017

Ridhima Saggar and Balwinder Singh

This study aims to measure the extent of voluntary risk disclosure and examine the relationship between corporate governance firm level quality in the form of board…

3924

Abstract

Purpose

This study aims to measure the extent of voluntary risk disclosure and examine the relationship between corporate governance firm level quality in the form of board characteristics and ownership concentration’s impact on risk disclosure in the annual reports of Indian listed companies.

Design/methodology/approach

The method adopted in this study is automated content analysis, which is applied to a sample of 100 listed Indian non-financial companies to find out the extent of risk disclosure. Further, multiple linear regressions have been applied to find out the relationship between corporate governance firm level quality in the form of board characteristics, ownership concentration and risk disclosure.

Findings

The findings reveal that the total number of positive risk keywords surpasses negative risk keywords disclosure. The corporate governance mainsprings, namely, board size and gender diversity have a positively significant effect on risk disclosure, whereas ownership concentration in the hands of the largest shareholder insignificantly affects risk disclosure, but identity of the largest shareholder having ownership concentration negatively affects disclosure of risk information in the case of Indian promoter body corporate, foreign promoter body corporate and non-institutions in comparison to family ownership.

Research limitations/implications

This study relied on a set of 39 risk keywords for measuring the extent of risk disclosure. Further, it uses a sample of 100 companies to examine the effect of corporate governance on risk disclosure at one point of time. However, a longitudinal study can help in understanding risk disclosure adopted by Indian listed companies in a better manner.

Practical implications

The findings have implications for regulatory bodies such as the Securities and Exchange Board of India, which needs to strengthen corporate governance norms with respect to board characteristics and keep a check on ownership concentration for improving risk disclosure by companies.

Originality/value

To best of the authors’ knowledge, this study is a preliminary attempt linking two research lines in India, that is, corporate risk disclosure and corporate governance quality in the form of board characteristics and ownership concentration. The study identifies corporate governance firm level qualities which lead to divulgation of risk information by the companies pointing towards strengthening of regulatory regime in the country for improved corporate governance regulations adopted by listed companies.

Details

Managerial Auditing Journal, vol. 32 no. 4/5
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 26 November 2019

Sin Huei Ng and Chen Suen Lee

The study intends to shed lights on whether the risk factors disclosed in the initial public offering (IPO) prospectus in Malaysia are able to reflect the actual risks of stocks…

Abstract

Purpose

The study intends to shed lights on whether the risk factors disclosed in the initial public offering (IPO) prospectus in Malaysia are able to reflect the actual risks of stocks once they are traded on the exchange. In other words, the purpose of this paper is to explore whether prospective investors will be able to benefit, in terms of the more accurate risk information, from the risk disclosures in the IPO-prospectus.

Design/methodology/approach

Using data obtained from 118 IPO prospectuses of Malaysian companies that issued shares on Bursa Malaysia in the period from 2009 to 2016, the authors investigated whether the “risk factor” section in the IPO prospectuses provides sufficient risk-relevant information to investors. To determine whether companies disclose risk-relevant information, a detailed content analysis of the risk sections was carried out to obtain an aggregate measure of risk disclosure.

Findings

The findings revealed that the aggregate measures of risk extracted from these texts did not successfully predict the following outcomes: the volatility of companies’ future stock prices, the sensitivity of future stock prices to market-wide fluctuations and the severe declines in future stock prices.

Practical implications

As indicated by the findings, the authors, therefore, deduce that the IPO prospectuses of Malaysian companies do not provide sufficient risk-relevant information in the risk factor section. The findings imply that overall the management of Malaysian companies would neither be able nor willing to disclose the right and relevant information to the public via IPO prospectus.

Originality/value

Many corporate risk disclosure studies focus primarily on the disclosures of annual reports of companies. The study intends to fill the gap by focusing on the risk disclosure in the IPO-prospectus. Risk disclosures in IPO-prospectus are farmore extensive than annual reports and, therefore, provide a richness of information that will not be available in the annual reports.

Details

Asia-Pacific Journal of Business Administration, vol. 11 no. 4
Type: Research Article
ISSN: 1757-4323

Keywords

Article
Publication date: 2 September 2019

Chandni Khandelwal, Satish Kumar, Deepak Verma and Harsh Pratap Singh

This paper aims to review the status of literature on financial risk reporting practices (FRRP) for the purpose of synthesizing mounting literature to suggest the relevant risk…

1000

Abstract

Purpose

This paper aims to review the status of literature on financial risk reporting practices (FRRP) for the purpose of synthesizing mounting literature to suggest the relevant risk reporting measure across the globe.

Design/methodology/approach

Using a systematic literature review method, a total of 61 articles from 42 referred journals and international conferences published from 2000 to 2018 are reviewed.

Findings

It has been found that despite the growing attention on and importance of corporate risk disclosure, academic literature on corporate risk disclosure is limited. Also, research linking risk disclosure with governance mechanisms is rare. Scrutiny of the literature on corporate risk disclosure shows that most of the researchers have focused on the limited or single period to examine the risk disclosure practices, determinants and corporate performance. The limitation of these studies is that with single period data analysis generalization of findings is limited. Findings of longitudinal studies are more reliable, and in extant literature, only a few studies have used data of more than a single period.

Originality/value

This paper contains a comprehensive listing of publications on financial risk reporting and corporate disclosure and its classification according to various attributes. The paper will be useful to researchers, finance professionals and others concerned with risk reporting to understand the importance of risk disclosure.

Article
Publication date: 20 May 2022

Nicola Raimo, Giuseppe NIcolò, Paolo Tartaglia Polcini and Filippo Vitolla

This study aims to examine the impact of corporate governance attributes, in the form of board characteristics, on risk disclosures provided through integrated reporting (IR).

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Abstract

Purpose

This study aims to examine the impact of corporate governance attributes, in the form of board characteristics, on risk disclosures provided through integrated reporting (IR).

Design/methodology/approach

Drawing upon an agency theory perspective, this study examines the effect of the main corporate governance board characteristics (size, gender diversity, independence and meeting frequency) on the level of risk disclosure provided by a sample of 95 IR adopters from 24 countries for 2018.

Findings

The results suggest that firms are slow to realise IR’s potential to produce innovations in risk disclosure mechanisms. In addition, certain board characteristics, such as gender diversity, independence of directors and meeting frequency, are positive drivers of the risk disclosure provided via IR.

Originality/value

To the best of the authors’ knowledge, this is the first study that investigates the impact of corporate governance mechanisms on risk disclosure provided via IR. Connecting corporate governance mechanisms to IR risk disclosure practices can contribute to enhancing the practical and theoretical understanding of the role that the board of directors may play in stimulating transparency and accountability about risks via an alternative communication tool, IR, to the benefit of both investors and other stakeholders.

Details

Corporate Governance: The International Journal of Business in Society, vol. 22 no. 7
Type: Research Article
ISSN: 1472-0701

Keywords

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