The effect of audit committee characteristics on earnings management: Evidence from the United Kingdom

2012 ◽  
Vol 10 (1) ◽  
pp. 13-38 ◽  
Author(s):  
Murya Habbash ◽  
Christoph Sindezingue ◽  
Aly Salama
Keyword(s):  
United Kingdom ◽  
Earnings Management ◽  
Audit Committee ◽  
The United Kingdom

scholarly journals Audit Committee Competence and Earnings Management in Europe

2022 ◽  
Vol 25 (1) ◽  
pp. 121-135
Author(s):  
César Zarza Herranz ◽  
Nuria Reguera Alvarado ◽  
Felix J. López Iturriaga
Keyword(s):  
United Kingdom ◽  
Earnings Management ◽  
Audit Committee ◽  
The Other ◽  
Dual Effect ◽  
Negative Relation ◽  
Financial Firms ◽  
The United Kingdom ◽  
Relevant Role

This study analyses the association between the competence of audit committee members and earnings management in a sample of 142 non-financial firms from France, Germany, Italy, Spain, and the United Kingdom over the 2006–2013 period. We measure members’ competence through their dedication and expertise. We find that outside directorships have a dual effect, such that a balanced level of dedication to the audit committee (roughly two outside directorships) reduces earnings management. We examine four types of expertise: audit, non-audit accounting, non-accounting financial, and supervisory expertise. We find a negative relation between earnings management and the audit experience of committee members, and that the other types of expertise play no relevant role. We also find that the contribution of audit experts to curbing earnings management proves particularly important in smaller and less active committees, as well as in smaller and busier boards. Este estudio analiza la asociación entre la competencia de los miembros del Comité de Auditoría y la gestión de los beneficios en una muestra de 142 empresas no financieras de Francia, Alemania, Italia, España y el Reino Unido durante el período 2006-2013. Se mide la competencia de los miembros a través de su dedicación y experiencia. Se descubre que el cargo de consejero externo tiene un efecto doble, de modo que un nivel equilibrado de dedicación al comité de auditoría (aproximadamente dos cargos de consejero externo) reduce la gestión de beneficios. Se examinan igualmente cuatro tipos de experiencia: de auditoría, contable no relacionada con la auditoría, financiera no contable y de supervision, encontrándose una relación negativa entre la gestión de beneficios y la experiencia en auditoría de los miembros del comité, y que los otros tipos de experiencia no desempeñan ningún papel relevante. También se descubre que la contribución de los expertos en auditoría para limitar la gestión de beneficios resulta especialmente importante en los comités más pequeños y menos activos, así como en los consejos más pequeños y más ocupados.

scholarly journals CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE IN THE BANKING SECTOR OF NIGERIA AND THE UNITED KINGDOM

2020 ◽  
Vol 5 (1) ◽  
pp. 8-20
Author(s):  
Ayodeji Ajibade ◽  
◽  
Kofoworola Jaji ◽  
Jerry Kwarbai ◽  
Keyword(s):  
Corporate Governance ◽  
United Kingdom ◽  
Financial Performance ◽  
Audit Committee ◽  
Banking Sector ◽  
Stock Exchange ◽  
Secondary Data ◽  
Multiple Regression Model ◽  
Governance System ◽  
The United Kingdom

Banks are the support system of any economy, hence the significant need for economies to have a healthy system of banking with operative corporate governance system. The study examined the effect of corporate governance and financial performance in the banking sector of Nigeria and United Kingdom. It analysed secondary data collated from the annual report of ten listed banks each from the Nigeria and UK stock exchange markets. Using multiple regression model, the study examined the combined effect of board size, board composition, audit committee and firm size on the performance of the listed banks. The result shows that corporate governance variables have a significant effect on the financial performance of the Nigeria and U.K banking sector. Keywords: Inflation, monetary policy, economic growth, purchasing power, Nigeria.

Comprehensive Corporate Governance Mechanism and Disclosure Quality: Evidence from the United Kingdom

2021 ◽  
Vol 12 (3) ◽  
pp. 2852-2872
Author(s):  
Nooraisah Katmon Et.al
Keyword(s):  
Corporate Governance ◽  
United Kingdom ◽  
Audit Committee ◽  
Forecast Accuracy ◽  
Analyst Forecast ◽  
Governance Mechanism ◽  
Disclosure Quality ◽  
Multiple Directorships ◽  
The United Kingdom

Our study empirically examines the relationship between corporate governance and disclosure quality from the context of the United Kingdom. While studies on corporate governance and disclosure quality are extensive, we argue that only limited studies have utilised analyst forecast accuracy as a proxy for disclosure quality. We concentrateon the analyst forecast accuracy since we value the credibility of financial analysts in forecasting the firm’s earnings. Analyst are the expert users of the firm’s information and they rely on their analysis to predict firm’s earnings as well as to make a recommendation. We derived our sample from the analyst perception on the firms with high quality of disclosure that is the Investor Relation (IR) Magazine Award. Specifically we used 127 match-paired sample (i.e., winners and non-winners) of IR Magazine Award during the year 2005-2008. We measure corporate governance using board characteristics, audit committee characteristics, chairman and audit committee multiple directorships, chairman tenure and institutional ownership. Our findings report that multiple directorship by audit committee consistently increases disclosure quality. This suggest that the multiple directorships held by audit committee in other firms potentially improve their knowledge and experience in improving the quality of disclosure.Moreover, the result also shows a negative association between audit committee financial expertiseand board independent on the extent of quality of disclosure. These findings imply that the appointment of audit committee with financial expertise as well as an independent directors are merely a ticking the box activities, thus it appears in the letter form, but not in spirit. Our results are robust across various estimation, alternative measurement as well as endogeneity test that we have conducted.

scholarly journals Corruption and misconduct: A behavioural reflection from investigative reports into local government

2014 ◽  
Vol 9 (1) ◽  
Author(s):  
Aquinas J. Purcell
Keyword(s):  
Qualitative Research ◽  
United Kingdom ◽  
New Zealand ◽  
Local Government ◽  
Audit Committee ◽  
Zero Tolerance ◽  
The United Kingdom ◽  
Behavioural Factors ◽  
Government Perspective

This paper offers a local government perspective on the behavioural factors which can be the precursors for corruption and misconduct and those factors which can prevent corruption and misconduct. The investigation centred on corruption and misconduct evidenced from local government investigation reports in Australia, New Zealand and the United Kingdom. A corruption and misconduct taxonomy was developed and the role of the audit committee in the oversight of corruption and misconduct allegations in local government was empirically tested. The empirical findings indicated low support for an audit committee managing corruption and misconduct allegations. The qualitative research found that a robust culture of zero tolerance of corruption and misconduct was one of the best ways to keep a council honest.

A comparison of the United Kingdom Clinical Aptitude Test (UK-CAT) with a traditional admission selection process

2009 ◽  
pp. 1-6 ◽  
Author(s):  
Nishan Fernando ◽  
Gordon Prescott ◽  
Jennifer Cleland ◽  
Kathryn Greaves ◽  
Hamish McKenzie
Keyword(s):  
United Kingdom ◽  
Selection Process ◽  
Aptitude Test ◽  
The United Kingdom
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