scholarly journals The impact of good corporate governance practices on financial reporting quality: Empirical evidence from Jordanian listed companies

2012 ◽  
Vol 9 (4) ◽  
pp. 178-186 ◽  
Author(s):  
Khaled Erieg Abu-Risheh ◽  
Mo’taz Amin Al-Sa’eed
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Reporting Quality ◽  
Audit Committees ◽  
Financial Reporting Quality ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
The Relationship

The main objective of this paper is to analyze the relationship between the good corporate governance practices on the financial reporting quality of Jordanian listed companies. Specifically, we focus on the board’s independence, board’s transparency, and separate audit committee. A listing of Share -Traded Jordanian Companies was available from the Amman Stock Exchange as of 31 December 2011. A total of (167) company shares were traded as of 31 of December 2011. It was decided to distribute (160) questionnaires to the related external auditors, the expertise members of the Audit Committees, and the Jordanian regulatory bodies that oversight the corporate reporting of those companies, which include the Jordanian Securities Commission, Insurance Commission, and Central Bank of Jordan. The empirical study is realized based on a sample of the companies listed on the Amman Stock Exchange. Our research results shows that the good corporate governance practices impact the financial reporting quality, were Independence is considered one of the determinants of the success of financial reporting quality (T = 3.709, 008) and (R= 0.676), in addition to that; the independent variables are able to explain the variance in the dependent variable, a multiple regression test was carried out to test the relationship between board of directors’ transparency, board of directors’ independence, and audit committees, and financial reporting quality (FRQ), they are able to explain nearly 0.805% (R=0.805% P< 0.000) of the variance in financial reporting quality. The correlation analysis allows testing the strength of relationships between several independent variables and one dependent variable, which is the case in this study. The results of correlation analysis shows that the relationships between boards of directors’ transparency, board of directors’ independence, and separate audit committees, and the dependent variable which is financial reporting quality (FRQ), are significant.

The relationship between cost stickiness and financial reporting quality in Tehran Stock Exchange

2018 ◽  
Vol 67 (9) ◽  
pp. 1550-1565 ◽  
Author(s):  
Mahdi Salehi ◽  
Nasrin Ziba ◽  
Ali Daemi Gah
Keyword(s):  
Financial Reporting ◽  
Design Methodology ◽  
Stock Exchange ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Statistical Software ◽  
Testing Hypotheses ◽  
Content Type ◽  
The Relationship ◽  
Cost Stickiness

Purpose The purpose of this paper is to investigate the relationship between financial reporting and cost stickiness in companies listed on the Tehran Stock Exchange. Design/methodology/approach Data of all Iranian manufacturing listed companies gathered for testing hypotheses during 2010–2016 and R statistical software are employed in order to analyzing data. Findings The results of this study indicate that there is a significant relationship between administrative, sale, material, labor and overhead costs and the financial reporting qualities of the companies under study. Originality/value The study focuses on relationship between financial reporting and cost stickiness in companies listed on the Tehran Stock Exchange, which is the first study of its type in Iran.

scholarly journals Exploring Linkages Between Corporate Governance and Business Performance: Does Good Corporate Governance Lead to Enhanced Business Value?

2020 ◽  
Vol 27 (1) ◽  
pp. 37-61
Author(s):  
Tirthankar Nag ◽  
Chanchal Chatterjee
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Business Performance ◽  
Stock Exchange ◽  
Random Effect ◽  
Corporate Boards ◽  
Market Returns ◽  
Good Corporate Governance ◽  
Governance Practices ◽  
The Relationship

This study explores the influence of corporate governance practices in corporate boards on firm performance and draws insights on the relative importance for companies for fostering the development of governance mechanisms in business. The study examines 50 firms belonging to the benchmark index of the National Stock Exchange of India (NIFTY 50) and tracks them for over a five-year period. The study uses fixed and random effect econometric models to explore the relationship between corporate governance variables, and firm performance using both accounting returns (EVA, ROA and ROE) and market returns (MVA). The study finds that corporate governance variables significantly improve firm performance or value creation. Especially, multiple directorships, involvement of foreign institutional investors and increase in promoter holdings may significantly affect returns of the firm. The study suggests that it may be useful to foster better corporate governance practices and monitor linkages with firm performance as the effect is influenced by other control variables also.

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.

scholarly journals The Impact of Audit Committee Performance and Composition on Financial Reporting Quality in Jordan

2021 ◽  
Vol 12 (3) ◽  
pp. 55
Author(s):  
Qasim Ahmad Alawaqleh ◽  
Nashat Almasri
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Audit Committee ◽  
Work Performance ◽  
Stock Exchange ◽  
Internal Audit ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Governance System ◽  
The Impact

The corporate governance literature indicates efforts to investigate the role of the audit committee (AC) in improving the financial reporting quality (FRQ) after the emergence of financial scandals in many countries in the world, inclusive Jordan. To date, empirical findings are inconclusive enough to address all audit committee characteristics regarding its competency and responsibilities by employing a questionnaire to collect data about this relationship. Thus, this study measures the correlation between AC (performance and composition) and FRQ of manufacturing corporations registered on the Amman Stock Exchange (ASE). To test this impact empirically, the target population was financial managers, audit committee members, and internal audit managers who are working in manufacturing corporations listed on the (ASE). According to the coefficient (β), the independent variables (Audit Committee Performance and Audit Committee Composition influence the dependent variable FRQ. This research recommends that firms enhance the audit committee work performance and composition to ensure audit committee members effectively enhance the FRQ audit committee is a vital mechanism of the firm's corporate governance system.

The ISIS Impacts on the Political Connections, Board Interlock, and Quality of Financial Reporting

2021 ◽  
pp. 234779892110324
Author(s):  
Mahdi Salehi ◽  
Ali Zuhair Maalah ◽  
Hamideh Nazaridavaji
Keyword(s):  
Multiple Regression ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Political Connections ◽  
Islamic State ◽  
The Relationship

This research examines the relationship between political connections, board interlock, and the quality of financial reporting of the listed companies on the Iraq Stock Exchange (ISE) with ISIS's mediating role (the Islamic State of Iraq and Syria). This research is about the mediating part of ISIS in the relationship between board interlock, political connections, and financial reporting quality. The study attempts to reveal whether or not political connections and board interlock can improve financial reporting quality. A multiple regression model is used to test the research hypothesis. The samples consist of 245 (firm-year) companies listed on the ISE from 2012 to 2018, and the hypothesis is tested by multiple regression based on integrated data models. The results demonstrate a significant and negative relationship between political connections, board interlock, and financial reporting quality. Thus, higher political connections reduce the quality of financial reporting. The results also conveyed that ISIS contributes to the decline of this relationship. This research expands the literature review on ISIS’s impact on these engaged countries' economies.

Financial reporting quality and firms’ information environment: a case of Iranian firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yasser Rezaei Pitenoei ◽  
Mehdi Safari Gerayli ◽  
Ahmad Abdollahi
Keyword(s):  
Financial Reporting ◽  
Capital Market ◽  
Stock Exchange ◽  
Reporting Quality ◽  
Information Environment ◽  
Financial Reporting Quality ◽  
Multivariate Regression Model ◽  
Content Type ◽  
Composite Measures ◽  
The Relationship

Purpose The purpose of this study is to investigate the relationship between financial reporting quality and information environment (IE) in firms listed on the Tehran Stock Exchange (TSE). Design/methodology/approach In this study, composite measures were used as the proxy to measure financial reporting quality and IE. In this regard, a sample of 1,490 firm-year observations of the firms listed on the TSE during the years 2008 to 2017 and a multivariate regression model was used to examine the research hypothesis. Findings Findings indicate that financial reporting quality has a positive relationship with firms’ IE. This result is robust to the alternate measure of financial reporting quality and endogeneity problem. Originality/value The present study is the first study to develop a composite measure for the firms’ IE in the Iranian capital market. As a result, it not only expands the theoretical literature on the firms’ IE but also helps policymakers, regulators, investors and financial reporting users make informed decisions.

Optimizing good Corporate Governance Mechanism to Improve Performance: Case in Indonesia’s Manufacturing Companies

2020 ◽  
pp. 097215092091987
Author(s):  
Ilham Hidayah Napitupulu ◽  
Anggiat Situngkir ◽  
Ferry Hendro Basuki ◽  
Widyo Nugroho
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Financial Reporting ◽  
Audit Committee ◽  
Audit Committees ◽  
Managerial Ownership ◽  
Company Performance ◽  
Governance Mechanism ◽  
Manufacturing Companies ◽  
Good Corporate Governance

The application of good corporate governance (GCG) aims to improve company performance. In implementing GCG, a mechanism is needed, namely a procedure and a clear relationship between the decision-maker and the party overseeing the decision. The mechanism of GCG can be measured by the numbers of board of directors, independent board of commissioners, audit committees, and also managerial ownership. This research is conducted at manufacturing companies listed on the Indonesia Stock Exchange, with a total sample of 52 companies determined by purposive sampling technique. Data are analyzed by using multiple regression analysis with statistical package for the social sciences (SPSS) tools. The findings show that the board of directors and independent commissioners have an influence on company performance, while audit committees and managerial ownership do not affect the company’s performance. The company’s performance is improved by the existence of an independent board of commissioners that provides guidance and direction as well as supervision to the company management. Meanwhile, the audit committee has no influence, because the audit committee is only responsible for assisting the board of commissioners in monitoring the financial reporting process by the management to improve the credibility of financial statements, and managerial ownership does not affect the company’s performance because the number of management shares is quite low, because of which the management cannot influence the decisions taken at the general meeting of shareholders to improve the company’s financial performance. Thus, if the GCG mechanism goes well, then the company’s performance will increase.

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