Board independence and internal control quality in Egypt: does CEO duality matter?

Khlif, Hichem; Samaha, Khaled

doi:10.1108/ijlma-08-2017-0202

Cited by 11 publications

(6 citation statements)

References 29 publications

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“…Big 4 auditors may enjoy more independence and exert more pressure on management to disclose internal control information [49]. Board independence provides the monitoring role for effective control to mitigate the management self-dealing behavior and this would improve the internal control quality for their effective monitoring role [50,51]. Lastly, the internal audit department plays a crucial role in overseeing and detecting internal control weaknesses and assisting management in improving financial reporting [22].…”

Section: Control Variablementioning

confidence: 99%

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The Impact of Family Ownership on Quality and Disclosure of Internal Control in Pakistan

et al. 2021

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The role of family owners in the internal control environment is characterized by contradictory theoretical arguments i.e., entrenchment and alignment behavior. Therefore, the objective of this study is to investigate the behavior exhibited by family owners concerning the internal control environment in an underdeveloped regulatory setting. The study collected both primary and secondary data to use a multivariate regression research design to investigate the impact of family owners and CEOs on the internal control quality and disclosure of enterprises. The results of the current study demonstrated that family owners and family CEO have a negative impact on the internal control quality and disclosure, which validates the entrenchment behavior exhibited by family owners in the Pakistani setting. The results of the current study imply that policymakers should promote strict policy initiatives regarding the effectiveness of internal controls and their reporting so that companies are compelled to have better engagement in internal control practices for the protection of minority shareholders.

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Section: Control Variablementioning

confidence: 99%

“…• Board Independence Number of independent board member sitting on board divided by total number of board [50,51]…”

Section: Control Variablementioning

confidence: 99%

The Impact of Family Ownership on Quality and Disclosure of Internal Control in Pakistan

et al. 2021

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“…It is worth noting that the control environment involves a set of standards of conduct, processes and structures that help provide the basis for carrying out internal control across the organization. The board of directors and senior management establish the top rank regarding the importance of internal control (Goh, 2009;Khlif and Samaha, 2019). The control environment involves the organization's integrity and ethical values, making up the parameters enabling the directors' board to carry out its governance oversight responsibilities; the organizational structure and assignment of authority and responsibility; the process for attracting, developing and retaining competent individuals; and the rigor around performance measures, incentives and rewards to drive accountability for performance (Uwadiae, 1992).…”

Section: Relationship Between Internal Control Components and Earnings Managementmentioning

confidence: 99%

Internal control and real earnings management in the French context

Wali

Masmoudi

2020

JFRA

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Purpose This study aims to examine whether the internal control system quality in the French context improve the information quality having been reflected by the level of real earnings management (REM) measured by inventory overproduction, discretionary expenses reduction and sales manipulation. Design/methodology/approach The research uses a multiple regression analysis to examine the association between internal control and REM. The years 2010-2015 are used as analysis period by focusing on the French context. Three panel data are applied to the companies belonging to the Cotation Assistée en Continu (CAC) 40 index for the entire study period. Findings The results show that high internal control index has a negative impact on the REM and that better internal control indeed makes financial reporting more credible to investors. Further, the results demonstrate that control environment, risk assessment, control activities and monitor are the components that mainly affect REM. Originality/value The results contribute to the literature dealing with the relationship between internal control quality and REM by shedding light on the importance of internal control quality in improving information quality in the French context. Moreover, this study is using a quantitative measure of the internal control quality while much of the prior literature uses material weaknesses to estimate the effectiveness of internal control system.

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“…Thus, a large board is likely to be more able to reduce information asymmetries, ensuring better internal controls. According to Khlif and Samaha (2019), the board of directors acts on behalf of shareholders and is an effective tool for improving internal control quality.…”

Section: Board Sizementioning

confidence: 99%

The Impact of Board of Directors and Islamic Shariah on Company Internal Control: Evidence from Jordan

Amayreh,

Ananzeh,

Bugshan

2024

IJEFI

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The purpose of this paper is to examine the impact of corporate governance and compliance with Shariah on internal controls over financial reporting. It also examines the moderating role of Shariah compliance on the relationship between corporate governance structures and internal reporting controls. Ordinary least square (OLS) models are applied to 94 listed Jordanian companies on Amman Stock Exchange over the period 2015-2021. The empirical evidence shows board size, board meetings, Shariah compliance, and auditor type have a negative impact on material weaknesses in internal controls (MWIC). Second, unitary leadership, where the same individual is both the chair and CEO, is positively correlated to MWIC. Third, Shariah compliance strengthens the effect of board meetings, suggesting that Shariah compliance and good corporate governance mechanisms reinforce each other to ensure higher-quality internal financial reporting controls.

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Board independence and internal control quality in Egypt: does CEO duality matter?

Cited by 11 publications

References 29 publications

The Impact of Family Ownership on Quality and Disclosure of Internal Control in Pakistan

The Impact of Family Ownership on Quality and Disclosure of Internal Control in Pakistan

Internal control and real earnings management in the French context

The Impact of Board of Directors and Islamic Shariah on Company Internal Control: Evidence from Jordan

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