Do Independent Directors Monitor Financial Reporting? Evidence from Accounting Misstatements Following Stock Exchange Listing Requirements

2015 ◽  
Author(s):  
Andrew Stephen McMartin ◽  
Abigail M. Needles
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Independent Directors

Mitigating Negative Spillovers from Categorization of Foreign-Listed Firms: The Role of Host-Country Independent Directors

2019 ◽  
Vol 15 (4) ◽  
pp. 773-807
Author(s):  
Eugene Kang ◽  
Asda Chintakananda
Keyword(s):  
Financial Reporting ◽  
Host Country ◽  
Home Country ◽  
Stock Exchange ◽  
Spillover Effects ◽  
Independent Directors ◽  
Fiduciary Duties ◽  
Listed Firms ◽  
Or Task

ABSTRACTThis study examines how cognitive categorization by host-country investors give rise to negative spillovers among host-country foreign-listed firms from the same home country when one of these foreign-listed firms discloses a financial reporting irregularity. This study further examines how attributes of host-country independent directors mitigate such negative spillover effects through signaling fulfilment of their fiduciary duties. Our results based on Chinese foreign-listed firms on the Singapore Stock Exchange from 2007–2014 reveal that host-country independent directors increase spillover effects among foreign-listed Chinese firms from financial reporting irregularities. However, such increase is attenuated when these directors signal fulfilment of their fiduciary duties through home-country, industry, or task-related experiences, and the observed mitigating effect is stronger when they possess a combination of these experiences.

scholarly journals ANALISIS PENGARUH FRAUD PENTAGON THEORY TERHADAP FRAUDULENT FINANCIAL REPORTING PADA PERUSAHAAN PERBANKAN YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2014 – 2019

2021 ◽  
Vol 17 (1) ◽  
pp. 22-47
Author(s):  
Whisnu Widyatama ◽  
Loh Wenny Setiawati
Keyword(s):  
Board Of Directors ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Statements ◽  
Independent Directors ◽  
Fraudulent Financial Reporting ◽  
Ceo Duality ◽  
Economic Decisions ◽  
The World ◽  
Fraudulent Financial Statements

Fraudulent financial statements or fraudulent financial reporting are actions that cause a person or group of people to obtain certain benefits at the expense of other parties. Fraudulent financial statements themselves are the biggest cause of loss in the world.  Therefore, financial statements that are not presented reliably and are not honestly disclosed can mislead users in making economic decisions. This study aims to analyze the effect of pentagon theory fraud proxied by five variables, that are CEO duality, change of board of directors, number of independent commissioners, level of leverage, and change of auditors to fraudulent financial reporting proxied by Beneish M-Score in banking companies listed on the Indonesia Stock Exchange (IDX) for the 2014-2019 period. This study uses 205 observational data using logistic regression analysis. The results of this research indicate that CEO duality and the change of board of directors have a significant effect on fraudulent financial reporting, while the number of independent directors, the level of leverage, and the change of auditors do not affect fraudulent financial reporting.

scholarly journals Audit Committee Quality and Financial Reporting Quality: A Study of Selected Indian Companies

2017 ◽  
Vol 4 (1) ◽  
pp. 1-18 ◽  
Author(s):  
Kanukuntla Shankaraiah ◽  
Seyed Masoud Sajjadian Amiri
Keyword(s):  
Financial Reporting ◽  
Audit Committee ◽  
Stock Exchange ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Independent Directors ◽  
Net Income ◽  
Board Size ◽  
Reporting Practices ◽  
Ceo Tenure

This study examines audit committee quality and its relationship with financial reporting quality. The population of this study consists of the companies listed in Bombay Stock Exchange (BSE) between years 2002 and 2012. Using Godden sample size formula, 133 companies are selected randomly for the study. It is found that in most of the equity based listed companies at BSE under study have complied with the legal formalities, for instance, appointment of independent directors, number of meetings, size of the audit committee, legal qualifications and financial qualifications of the directors, as they were required for the listing at a stock exchange in India. Further, the analysis and tests state that board size, audit committee meetings and its size have relationship with the financial reporting practices, but the CEO tenure and hold, board independence, net income, proportion of independent directors on board, legal qualifications and financial qualifications of the directors and overlap of audit committee members on compensation committee, have no influence on the financial reporting practices. Thus, it may be inferred that the companies may improve the financial reporting quality, by managing the board size, audit committee meetings and size, as these characteristics have significant relationship with financial reporting quality.

Pengaruh Konvergensi International Financial Reporting Standards (Ifrs) Terhadap Penghindaran Pajak(Tax Avoidance)

2018 ◽  
Vol 26 (2) ◽  
pp. 158-169
Author(s):  
Umi Wahidah ◽  
Sri Ayem
Keyword(s):  
Financial Reporting ◽  
Tax Evasion ◽  
Stock Exchange ◽  
Control Variable ◽  
Tax Avoidance ◽  
Sampling Technique ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Control Variables ◽  
Financial Reporting Standards

This research aimed to examine the effect of the convergence of International Financial Reporting Standards (IFRS) on tax avoidance on companies listed in Indonesia Stock Exchange. Tax avoidance that used in this research was Cash Efective Tax Rate (CETR). This research is also use the control variable to get other different influence that different such as CSR, size, and earning management (EM. This research used populations sector of transport service companies that listed in Indonesia Stock Exchange. The data of this research taken from secondary data that was from the Indonesia Stock Exchange in the form of Indonesian Capital Market Directory (ICMD) and the annual report of the company 2011-2015. The method of collecting sample was purposive sampling technique, the population that to be sampling in this research was populations that has the criteria of a particular sample. Companies that has the criteria of the research sample as many as 78 companies. The method of analysis used in this research is multiple regression analysis. Based on regression testing shows that the convergence of International Financial Reporting Standards (IFRS) has a positiveand significant impact on tax evasion. This shows that IFRS convergence actually improves tax evasion practices. The control variables of firm size and earnings management also significantly influence the application of IFRS in improving tax avoidance practices, while CSR control variables have no role in convergence IFRS in improving tax evasion practice.

DETERMINAN TIMELINESS OF FINANCIAL REPORTING PADA INDUSTRI MANUFAKTUR INDONESIA

2017 ◽  
Vol 2 (1) ◽  
pp. 73
Author(s):  
Mohamad Zulman Hakim
Keyword(s):  
Financial Reporting ◽  
Manufacturing Industry ◽  
Sampling Method ◽  
Stock Exchange ◽  
Financial Statements ◽  
Company Size ◽  
Return On Assets ◽  
Financial Report ◽  
Independent Variables ◽  
Equity Ratio

This study aims to prove empirically the factors that affect the Timeliness of Financial Reporting. These factors are Return on Assets (ROA), Debt to Equity Ratio (DER), Company Size and Auditor Opinion as Independent Variables and Timeliness of Financial Statements as Dependent Variables.The population of this study is the Manufacturing Industry listed on the Indonesia Stock Exchange period 2012-2014. The sample was determined by purposive sampling method and 66 companies were obtained. The data used are obtained from the published company financial report. The method of analysis used is logistic regression at 5% significance level.Empirical study shows that ROA has significant effect on Timeliness of Financial Reporting. DER, Company Size and Auditor Opinion have no significant effect on Timeliness of Financial Reporting. Keywords:    ROA, DER, Company Size, Auditor Opinion, Timeliness of Financial Reporting

HUBUNGAN BOARD DAN KOMITE AUDIT TERHADAP MANAJEMEN LABA

2010 ◽  
Author(s):  
Fivi Anggraini
Keyword(s):  
Corporate Governance ◽  
Moral Hazard ◽  
Earnings Management ◽  
Conflict Of Interest ◽  
Significant Relationship ◽  
Stock Exchange ◽  
Earning Management ◽  
Independent Directors ◽  
Relationship Of ◽  
The Relationship

Earnings management is the moral hazard problem of manager that adses because of the conflict of interest between the manager as agent and the stakeholder and the owner as principal. The behavior of earnings management will immediately influence the reported earning. The aims of this research at examining the relationship of board and audit committe to earnings management. The samples of this research is all of companies member Corporate Governance Perception Index (CGPI) in the years of 2003-2006 which were listed in Jakarta Stock Exchange. The results of this study show that (1) the proportion of independent directors on the board had not significant relationship to earning management, (2) competence of independent directors on the board had not significant relationship to earning management, (3) the size of board had significant relationship to earning management, (4) the proportion of independent directors on the audit committe had not significant relationship to earning management, and (5) competence of members of the audit committe had significant relationship to earning management.

Alibaba Group Initial Public Offering: A Case Study of Financial Reporting Issues

2016 ◽  
Vol 31 (4) ◽  
pp. 449-460 ◽  
Author(s):  
Qing L. Burke ◽  
Tim V. Eaton
Keyword(s):  
New York ◽  
Initial Public Offering ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Accounting ◽  
Learning Needs ◽  
York Stock Exchange ◽  
Accounting Courses ◽  
Chinese Company ◽  
Public Offering

ABSTRACT In September 2014, the Chinese e-commerce giant Alibaba Group Holding Limited issued shares on the New York Stock Exchange, making it the world's largest initial public offering. This case examines different aspects of the Alibaba Group's initial public offering, including Alibaba Group's business model, financial reporting and corporate governance, as well as the macroeconomic, political, and legal environment in which the company operates. In addition, this case will familiarize students with the risks and opportunities for Chinese companies and investors when a Chinese company lists in the U.S. This case is suitable for financial accounting and international accounting courses at the intermediate and advanced levels for undergraduates as well as graduate students. The case is scalable, and instructors can choose from multiple sections of the case and different case questions to tailor the case difficulty to their students' learning needs.

The relationship between knowledge-based economy and fraudulent financial reporting

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abbas Koolivand ◽  
Mahdi Salehi ◽  
Meysam Arabzadeh ◽  
Hassan Ghodrati
Keyword(s):  
Financial Markets ◽  
Financial Reporting ◽  
Fixed Effects ◽  
Stock Exchange ◽  
Fraudulent Financial Reporting ◽  
Content Type ◽  
Knowledge Based ◽  
Robust Testing ◽  
Knowledge Based Economy ◽  
The Relationship

Purpose This paper aims to assess the relationship between a knowledge-based economy and fraudulent financial reporting. Design/methodology/approach The study is descriptive-correlation based on published information from enlisted firms on the Tehran Stock Exchange during 2013–2019 with a sample of 178 firms (1,246 observations). The method used for hypothesis testing is linear regression using the panel data. Findings The results show that a knowledge-based economy is associated negatively and significantly with financial reporting. Moreover, robust testing has also examined the hypotheses (including fixed effects, OLS and t + 1) that confirmed the study’s preliminary results. Originality/value As the study was carried out in the emergent financial markets, like Iran, to figure out the relationship between knowledge-based economy and financial reporting, it can provide helpful information for the practitioners in this field.

Analysis of Factors Affecting Fraudulent Financial Reporting with Independent Commissioners as Moderation Variable

2021 ◽  
Vol 5 (4) ◽  
pp. 01-12
Author(s):  
Andalia Andalia ◽  
Amiruddin Amiruddin ◽  
Grace T. Pontoh
Keyword(s):  
Regression Analysis ◽  
Financial Reporting ◽  
Internal Control ◽  
Sampling Method ◽  
Stock Exchange ◽  
Jel Classification ◽  
Fraudulent Financial Reporting ◽  
Factors Affecting ◽  
Effect Of Pressure ◽  
Analysis Technique

Objective - This study aims to examine and analyze the effect of pressure, opportunity, rationalization, ability and arrogance on fraudulent financial reporting with independent commissioners as the moderating variable. Methodology/Technique - The object of this research is all companies listed on the Indonesian Stock Exchange during 2019. The research sample was obtained through purposive sampling method and resulted in 215 companies. The analysis technique used is multiple regression analysis and Moderated Regression Analysis (MRA). Findings - The results show that pressure, opportunity, rationalization, ability and arrogance had a significant effect on fraudulent financial reporting. The results of the moderation regression analysis show that independent commissioners moderate the effect of pressure and arrogance on fraudulent financial reporting. Meanwhile, independent commissioners did not moderate opportunities, rationalization, and capacity for fraudulent financial reporting. Novelty - This research contributes to the pentagon fraud theory, which proves that the elements contained in this theory can be used as a basis for analyzing fraud committed by companies, and contributing to the company so that the company's internal control is improved and the presence of an independent board of commissioners is not only a fulfillment of the company's internal control. regulations made by the IDX. Type of Paper: Empirical. JEL Classification: G32, M21, M41, M42. Keywords: Pressure; Opportunities; Rationalization; Arrogance; Fraudulent Financial Reporting Reference to this paper should be made as follows: Andalia; Amiruddin; Pontoh, G.T. (2021). Analysis of Factors Affecting Fraudulent Financial Reporting with Independent Commissioners as Moderation Variable, Accounting and Finance Review, 5(4): 01 – 12. https://doi.org/10.35609/afr.2021.5.4(1)

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