Board characteristics and demand for audit quality: a meta-analysis

Kalia, Deepali; Basu, Debarati; Kundu, Sayantan

doi:10.1108/ara-05-2022-0121

Cited by 12 publications

(7 citation statements)

References 138 publications

(173 reference statements)

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“…anti-corruption, sustainability and total score. Furthermore, this finding supports prior research arguments mainly in curbing corruption and that Big4 auditors represent high-quality auditors because of their scale, specialisation, technical proficiency, litigation risks and reputational incentives to uncover and expose financial reporting irregularities (Yu and Yu, 2011; Habib et al , 2019; Kao et al , 2019; Salehi et al , 2019; Kalia et al , 2023). Hence, firms are willing to equate quality with higher audit fees to send signals of credible financial reporting and reduce financial fraud.…”

Section: Discussionsupporting

confidence: 87%

Capital market effects of corporate transparency and sustainability: evidence from an emerging economy

Ko,

Subramaniam,

Devi

2024

JABS

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Purpose The study aims to examine the association between corporate transparency and firm value (capital market effect) and investigate whether auditor choice moderates this relationship. Design/methodology/approach This study uses the Malaysian Institute of Corporate Governance (2017) data set, which provides scores on anti-corruption commitment, organisational transparency and sustainability of Malaysia’s top 100 listed firms. The methodology entails an ordinary pooled least square regression method for empirical research. Findings The positive association between corporate transparency and firm value is more evident in anti-corruption and sustainability initiatives. More importantly, government-linked companies have higher scores. Firms with enhanced anti-corruption commitment are more likely to have higher firm value, and this relationship is more evident for politically connected firms. This study also finds that auditor choice is associated with the firm value in the sampled listed firms. Practical implications The findings provide implications for investors and regulators on the role of corporate transparency in an emerging capital market. Social implications The study recommends that emerging market regulators continue enhancing corporate governance codes and practices to improve reporting transparency for listed firms. Originality/value This study contributes to the growing literature on sustainability disclosures by incorporating corporate reporting transparency, explicitly relating to firms’ commitment to anti-corruption, organisational transparency and sustainability.

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Section: Discussionsupporting

confidence: 87%

Capital market effects of corporate transparency and sustainability: evidence from an emerging economy

Ko,

Subramaniam,

Devi

2024

JABS

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“…AC_ SIZE) will have a positive (negative) sign in the regression Model for which Ln_AFEES (TACR, Ln_ARL) is the dependent variable. In conjunction with Siagian and Tresnaningsih (2011) and Kalia et al (2023), we suggest that companies for which the majority of their boardroom directors (i.e. BO_INDE) and their audit committee members are independent (i.e.…”

Section: Control Variablesmentioning

confidence: 90%

“…Following the past published literature on the relation between the corporate boards' characteristics and audit quality (e.g. Sultana et al, 2015Sultana et al, , 2020Kalia et al, 2023;Yang, 2023), we anticipate that both the boardroom (i.e. BO_SIZE) and the audit committee size (i.e.…”

Section: Control Variablesmentioning

confidence: 93%

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The simultaneously representation of women at the audit demand and supply sides and audit quality

Mnif

Cherif

2023

ARA

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PurposeEven though the gender literature has addressed the independent effects of female audit committee members and female audit partners on audit quality, this research primary analyses whether the association between the presence of a female audit partner and audit quality depends on (fe)male participation on the audit committee of the audited client-firm. It further examines whether the relationship between female participation on the company's audit committee and audit quality is contingent on having a (fe)male audit partner.Design/methodology/approachA large sample of firm-year observations from the Swedish Corporation has been analyzed for the period that covers the years 2010–2019. The research hypotheses have been analyzed using the year and the industry fixed effect estimations clustered at the firm level.FindingsIn accordance with “the similarity-attraction theory”, the research findings provide support for a positively (negatively) significant relationship between female audit committee female representation and both audit fees and the audit reporting lag (earnings management) in client-firms of female audit partners, albeit insignificant in client-firms of male audit partners. This underscores that the presence of a female audit partner leads the beneficial link between female audit committee directorship and audit quality. Regression results on whether the relationship between female audit committee directorship and audit fees is contingent on having a (fe)male audit partner indicate that female audit partners earn higher (lower) audit fees in companies with gender-diverse (all male) audit committees. This corroborates (in somewhat) the male-female disparities in compensation within the public-audit firms' leading ranks, regarded as a male-dominated workplace worldwide. In conjunction with the argument that (compared to their male rivals) female auditors face more difficulties to reach partnership positions in the public-audit firms and are, thereby, more cautious about the loss of these positions through (in almost cases) exerting more audit efforts, and preventing their audited client-firms from manipulating earnings, the authors reveal that female audit partners are associated with longer (lower) audit reporting lags (earnings management) in both companies with gender-diverse and companies with all-male audit committees. The authors therefore conjuncture that the beneficial female auditor effect on audit quality is not contingent (in somewhat) on (fe)male participation on the company's audit committee. Collectively, the baseline reported results seem sound as they dissipate for a host of alternative metrics for both the dependent and the independent variables. Collectively, the baseline reported results seem sound as they dissipate for a host of alternative metrics for both the dependent and the independent variables.Originality/valueThis study heeds the recent claim for examining the gender effect on the interpersonal interaction between the main participants in the company's auditing process.

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“…In the paper titled "Board Characteristics and Demand for Audit Quality: A Meta-Analysis", Kalia, Basu, and Kundu (2022) (KBK hereafter) conduct a meta-analysis of the relationship between internal and external corporate governance mechanisms. The internal governance mechanisms examined by KBK include board of directors and the audit committee and the external mechanism is auditors.…”

Section: Summary Of the Papermentioning

confidence: 99%

An analysis of the meta-analysis of board characteristics and demand for audit quality

Yang

2022

ARA

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PurposeThe purpose of this study is to discuss Kalia, Basu and Kundu's (KBK’s) paper's motivation, findings and contributions and suggest further development.Design/methodology/approachThis paper is to discuss the meta-analysis of board characteristics and demand for audit Quqality by KBK.FindingsKBK paper is well motivated and makes new contributions to the literature. Future research can expand the sample and examine the moderating effects of institutional factors such as ownership structure, regulatory reforms and country-level investor protection and legal enforcement.Originality/valueBased on the review of KBK’ spaper, this study suggests that future research should expand the sample and examine the moderating effects of institutional factors such as ownership structure, regulatory reforms and country-level investor protection and legal enforcement.

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Board characteristics and demand for audit quality: a meta-analysis

Cited by 12 publications

References 138 publications

Capital market effects of corporate transparency and sustainability: evidence from an emerging economy

Capital market effects of corporate transparency and sustainability: evidence from an emerging economy

The simultaneously representation of women at the audit demand and supply sides and audit quality

An analysis of the meta-analysis of board characteristics and demand for audit quality

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