Voluntary decisions on audit committee composition and expertise and the influence of board of director characteristics: Further evidence from Singapore

2005 ◽  
Vol 1 (2) ◽  
pp. 49-65
Author(s):  
Mitchell Van der Zahn ◽  
Inderpal Singh
Keyword(s):  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Chief Executive ◽  
Audit Committees ◽  
Independent Directors ◽  
Collective Knowledge ◽  
Board Of Director ◽  
The Board Of Directors ◽  
Director Characteristics

Our study empirically examines the association between four board of director characteristics and two audit committee dimensions. The audit committee dimensions are the level to which Singapore publicly listed firms voluntarily (1) include more independent directors on their audit committee beyond the mandatory minimum majority of independent directors and (2) improve the collective knowledge and experience of this standing committee by including suitably qualified independent directors. Our analysis is based on hand collected data from 430 domestically incorporated firms listed on the Singapore Stock Exchange (SGX) at the end of 2003. We find Singapore publicly traded firms are likely to voluntarily include more independent directors on their audit committees beyond the mandated minimum majority when (1) the size of the board of directors increases, (2) firms segregate the positions of Chief Executive Officer (CEO) and Chairperson of the board, and (3) the proportion of independent directors serving on the board of directors increases. The percentage of independent directors with directorate interlocks appears not to influence a firm’s decision to voluntarily include more independent directors on their audit committees. We also find a statistically significant association between (1) duality (negative) and (2) percentage of independent directors with directorate interlocks (positive) and propensity for Singapore firms to voluntarily increase the collective knowledge and experience of the audit committee’s independent directors. Contrary to expectations board size and the proportion of independent directors are not significant determinants.

scholarly journals PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP NILAI PERUSAHAAN

2019 ◽  
Vol 1 (1) ◽  
pp. 7-20
Author(s):  
Yushita Marini ◽  
Nisha Marina
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Financial Statements ◽  
Audit Committees ◽  
Independent Directors ◽  
Governance Mechanism ◽  
The Board Of Directors ◽  
Corporate Governance Mechanism

This study aimed to get empirical evidence regarding the corporate governance mechanism proxied by the size of the board of commisioners, independent directors, the size of the board of directors and audit committees that affect the value of the company. This study using purposive sampling method for collecting samples of the companies listed in Indonesia Stock Exchange that publish the complete annual financial statements for 2010-2014, have the data necessary corporate governance in research, the company has never delisted and present its financial statements in Indonesian Rupiah , From the analysis of the study showed that the size of the board of commisioners, independent directors, and the size of the board of directors affect the value of the company, while the audit committee does not affect the value of the company.

scholarly journals Determinants of financial reporting quality and its implications on the financial performance of state-owned enterprises (SOEs)

2016 ◽  
Vol 6 (4) ◽  
pp. 521-530
Author(s):  
Evada Dewata ◽  
Hamdy Hadi ◽  
Hadi Jauhari
Keyword(s):  
Financial Performance ◽  
Board Of Directors ◽  
Financial Reporting ◽  
Audit Committee ◽  
Stock Exchange ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Government Ownership ◽  
Board Of Director ◽  
The Board Of Directors

This research aimed at analyzing the influence of the size of the board of directors, the composition of the independent commissioners, the effectiveness of audit committee and government ownership of the financial reporting quality and its implications on the financial performance of state-owned enterprises. Research population is state-owned enterprises listed on the Indonesia Stock Exchange from 2010-2014. There were 50 companies assigned as the sample of this research by using purposive sampling method. The results showed that partially, the size of the board of director, the composition of the independent commissioners and government ownership did not have the significant influence on financial reporting quality. The effectiveness of audit committee positively and significantly influenced financial reporting quality. The size of the board of directors, the effectiveness of the audit committee and financial reporting quality positively and significantly influenced financial performance. The composition of an independent commissioner and government ownership negatively and significantly influenced financial performance

scholarly journals Analisis Struktur Kepemilikan dan Good Corporate Governance terhadap Manajemen Laba pada Perusahaan di Bursa Efek Idonesia

2021 ◽  
pp. 220-225
Author(s):  
Jova Yolanda ◽  
Dian Efriyenti
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Management Practice ◽  
Institutional Ownership ◽  
Audit Committees ◽  
Good Corporate Governance ◽  
The Board Of Directors

Earnings management practice is the decision to choose a particular accounting method that can achieve the goal of increasing reported profits or reducing investment losses. Misappropriation of financial statements by management can affect the amount of reported income. This study aims to determine whether ownership structure and good corporate governance have a significant influence on earnings management. The study was conducted on pharmaceutical sub-sector companies listed on the Indonesia Stock Exchange (IDX) in a row for the 2016-2020 period. The sample technique used is purposive sampling, so as many as 7 samples of companies are used. The data testing method uses multiple linear analysis. The results of the data test show that partially institutional ownership has a negative and significant effect on earnings management, independent commissioners, the audit committee, and the board of directors has a negative but not significant effect on earnings management. Simultaneously the results state that institutional ownership, independent commissioners, audit committees, and the board of directors have an effect but not significantly on earnings management.

FAKTOR-FAKTOR YANG MEMPENGARUHI MANAJEMEN LABA PADA PERUSAHAAN SUB SEKTOR OTOMOTIF DAN KOMPONEN YANG TERDAFTAR DI BURSA EFEK INDONESIA (Periode 2010-2015)

2016 ◽  
Vol 6 (2) ◽  
pp. 11
Author(s):  
Syarifah Rabi’ah Andawiyah ◽  
Astri Furqani
Keyword(s):  
Earnings Management ◽  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Institutional Ownership ◽  
Economic Benefits ◽  
Audit Committees ◽  
Return On Assets ◽  
The Board Of Directors

Earnings management in a practical level is the deliberate actions carried out by the company's management to affect earnings in the process of preparation of financial statements that are used to assess a company and usually management provides information about the economic benefits which were not experienced by the company for personal purposes as well as to increase the value of the company. This study aimed to examine the effect of the Return on Assets (ROA), institutional ownership, the percentage of public shares, the board of directors, audit committees and leverage partially or simultaneously on earnings management during the period 2010-2015. The population in this study is a sub company's automotive sector and the components listed in the Indonesia Stock Exchange by using purposive sampling method. Data were analyzed using multiple linear regression analysis. The results of hypothesis shows that (1) partially there is influence between the Return on Assets (ROA), commissioners and leverage to earnings management, but there is no influence between institutional ownership, the percentage of public shares and the audit committee on earnings management (2) is simultaneously a influence between the return on Assets (ROA), institutional ownership, the percentage of public shares, the board of directors, audit committees and leverage to earnings management.Keywords: earnings management, Return on Assets (ROA), institutional ownership, the percentage of public shares, the board of directors, audit committee, leverag

PENGARUH EFEKTIVITAS DEWAN KOMISARIS, DAN KOMITE AUDIT, STRUKTUR KEPEMILIKAN PERUSAHAAN, DAN KUALITAS AUDIT TERHADAP PERATAAN LABA

2017 ◽  
Vol 5 (1) ◽  
Author(s):  
Achmad Junaedi , MM. ◽  
Khoirina Farina
Keyword(s):  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Income Smoothing ◽  
Audit Committees ◽  
Corporate Ownership ◽  
The Board Of Directors ◽  
Corporate Ownership Structure ◽  
A Company

This study aims to determine the effect of the effectiveness of the role of board of directors, and audit committees, corporate ownership structure and quality audits of income smoothing practices. To identify companies that practice income smoothing using Eckel Index (Eckel, 1981). The effectiveness of the board of directors and audit committee was measured using a score based on the characteristics of independence, activity, number of members and competence (Herman, 2009). The hypothesis was tested using logistic regression study sample consisted of 125 companies listed in the Indonesia Stock Exchange in 2011. The results show a company owned and controlled by the family have a higher probability to perform income smoothing practices and companies owned by foreigners has more probability low for income smoothing practices. While the effectiveness of the board of directors and audit committee does not influence the practice of smoothing earnings

scholarly journals PENGARUH DEWAN DIREKSI, KOMISARIS INDEPENDEN, DAN KOMITE AUDIT TERHADAP KINERJA KEUANGAN PADA SEKTOR MAKANAN DAN MINUMAN

2020 ◽  
Vol 1 (1) ◽  
pp. 66
Author(s):  
Ika Prayanthi ◽  
Christine Natalia Laurens
Keyword(s):  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Variable Number ◽  
Audit Committees ◽  
Return On Equity ◽  
Purposive Sampling ◽  
Food And Beverage ◽  
The Board Of Directors ◽  
Negative Effect

The Purpose of this study is to examine whether there is an effect between the variables of the board of directors, independent commissioners, and audit committees on return on equity in the food and beverage sector listed on the Stock Exchange in 2013-2017. Through purposive sampling techniques, there are 12 numbers of food and beverage industry companies that are consistently listed on the Indonesia Stock Exchange in 2013-2017. The method used in this study is an associative method using multiple regression. Statistical test results found that the variable number of board of directors, the proportion of independent commissioners, and the audit committee simultaneously influence the return on equity. If seen each variable has a different magnitude of influence of financial performance. The number of directors has a significant negative effect on return on equity, the proportion of independent directors has a significant positive effect on return on equity, but the audit committee variables does not have a significant effect on return on equity Tujuan penelitian ini adalah untuk menguji apakah terdapat pengaruh antara variabel dewan direksi, komisaris independen, dan komite audit terhadap return on equity pada sektor makanan dan minuman yang tercatat di BEI tahun 2013 – 2017. Melalui teknik purposive sampling, terdapat 12 jumlah perusahaan industri makanan dan minuman yang konsisten terdaftar di Bursa Efek Indonesia tahun 2013 – 2017. Metode yang digunakan dalam penelitian ini adalah metode asosiatif dengan menggunakan regresi berganda. Hasil uji statistik mendapati bahwa variabel jumlah dewan direksi, proporsi komisaris independen, dan komite audit secara simultan berpengaruh terhadap return on equity. Jika dilihat masing-masing masing-masing variabel memiliki besaran pengaruh yang berbeda terhadap kinerja keuangan. Jumlah dewan direksi memiliki pengaruh negatif signifikan terhadap return on equity, proporsi komisaris independen memiliki pengaruh positif signifikan terhadap return on equtiy, tetapi variabel komite audit tidak memiliki pengaruh yang signifikan terhadap return on equity. 

scholarly journals PENGARUH MEKANISME GOOD CORPORATE GOVERNANCE TERHADAP KINERJA KEUANGAN PADAPERBANKAN YANG TERDAFTAR DI BURSA EFEK INDONESIA (BEI)

2019 ◽  
Vol 7 (1) ◽  
pp. 49
Author(s):  
Mira Diyanty ◽  
Meina Wulansari Yusniar
Keyword(s):  
Corporate Governance ◽  
Linear Regression ◽  
Multiple Linear Regression ◽  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Governance Mechanism ◽  
Good Corporate Governance ◽  
The Board Of Directors

<em><span lang="EN-US">The purpose of this study was to analyze the effect of the Good Corporate Governance mechanism on the board of commissioners, the board of directors, the proportion of independent commissioners, the audit committee, CAR on ROA. This study also uses a purposive sampling method for sampling. The analysis test used is multiple linear regression analysis. The population used by companies listed on the Indonesia Stock Exchange in the period 2011 - 2013 and which meet the sample selection criteria. The sample used was 25 companies. Data is collected through secondary data collection in the form of the company's annual report for the period 2011 - 2013 which is published on the Indonesia Stock Exchange. The research hypothesis was tested by multiple linear regression which had met the testing of classical assumptions. The results of the analysis show that the board of commissioners, the proportion of independent commissioners, audit committees, CAR does not significantly influence ROA while the board of directors has a positive and significant effect on ROA.</span></em>

scholarly journals PERAN GOOD CORPORATE GOVERNANCE DALAM MEMINIMALISIR TERJADINYA FINANCIAL DISTRESS

BISMA ◽  
2021 ◽  
Vol 15 (1) ◽  
pp. 36
Author(s):  
Wulan Maulidiss Sa’diah ◽  
Mohamad Nur Utomo
Keyword(s):  
Board Of Directors ◽  
Financial Distress ◽  
Audit Committee ◽  
Stock Exchange ◽  
Managerial Ownership ◽  
Agency Conflicts ◽  
Good Corporate Governance ◽  
The Board Of Directors ◽  
Negative Effect

This study aims to determine the effect of managerial ownership, independent board of commissioners, board of directors, and audit committee on financial distress in banking companies listed on the Indonesia Stock Exchange from 2015 to 2019. This research used the purposive sampling method with a sample of 41 companies consisting of 205 observational data. Data were analyzed using logistic regression. The results showed that independent board of commissioners and board of directors had a significant and negative effect on financial distress. However, managerial ownership and audit committee did not have a significant effect on financial distress. This study supports the agency theory, which states that the monitoring role of the independent board of commissioners and the board of directors can minimize the occurrence of agency conflicts in a company. Keywords: audit committee, board of directors, financial distress, independent board of commissioners, managerial ownership

scholarly journals Analisis Faktor – Faktor yang Mempengaruhi Penyajian Kembali Laporan Keuangan

2020 ◽  
Vol 15 (2) ◽  
pp. 1-16
Author(s):  
Budi Chandra
Keyword(s):  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Financial Statements ◽  
Test Method ◽  
Executive Directors ◽  
Foreign Subsidiaries ◽  
Board Size ◽  
The Board Of Directors ◽  
Logistic Regression Test

The purpose of this study is to examine the characteristics of the audit committee, leverage, number of subsidiaries, percentage of foreign subsidiaries, percentage of non-executive directors, expertise of the board of directors, board size, and growth on the restatement of financial statements by using company data listed on the Indonesian Stock Exchange (IDX). Using a purposive sampling method that has several criteria to collect company data from 2014-2018 and test the data with the logistic regression test method. The conclusion is that there is an influence between the size of the audit committee, the number of subsidiaries, and the percentage of non-executive directors with the restatement of financial statements. While the audit committee independence variables, audit committee meetings, audit committee expertise, leverage, percentage of foreign subsidiaries, board of directors expertise, board size, and growth do not affect the restatement of financial statements.

scholarly journals Does Audit Committee Characteristics Promote Risk Management Practices in Nigerian Listed Firms?

2021 ◽  
Vol 10 (2) ◽  
pp. 70
Author(s):  
Stephen A. Ojeka ◽  
Alex Adeboye ◽  
Olajide Dahunsi
Keyword(s):  
Risk Management ◽  
Board Of Directors ◽  
Audit Committee ◽  
Financial Risk ◽  
Enterprise Risk Management ◽  
Audit Committees ◽  
Listed Firms ◽  
Enterprise Risk ◽  
The Board Of Directors ◽  
Accounting Expertise

There has been a huge and deluge of risk threatening industries at an unequalled magnitude in recent times. As such, the board of directors and senior executives are increasingly expected to manage their various organizations' risk portfolios, affecting their financial performance. This has led to the assigning of the risk assessment role to the audit committee. The board of directors and its audit committee play an essential function in Enterprise Risk Management (ERM) by building up the right condition or tone-at-the-top. Given the board's responsibilities for representing the interests of shareholders, it plays a vital role in overseeing management's approach to ERM. This study examined the relationship between audit committee characteristics and risk management of some selected listed firms in a developing country like Nigeria. The study used secondary data to describe the dependent variable (financial risk decomposed into credit risk and liquidity risk) and the explanatory variables (decomposed into audit committee accounting expertise, audit committee meetings, audit committee independence and audit committee gender). The study used pair sample t-test, student t-test, Pearson Moment Correlation and random panel data estimator for twenty (20) selected listed firms for 2012-2016. Findings indicate that there is a negative between audit committee accounting expertise and financial risk. This revealed that Accounting Expertise in Audit Committees are likely to involve in activities and practices to curb financial risk. In addition, the Audit committee meeting indicates a negative relationship with credit risk. Audit committee gender and audit committee independence have a negative effect on liquidity risk. Therefore, this study recommends that Audit committees embrace Enterprise Risk Management (ERM) to manage risks effectively across the organization. Risk management processes should be one of the major points of discussion during audit committee meetings.

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