Board Monitoring and Endogenous Information Asymmetry

Tian, Jie

doi:10.1111/1911-3846.12022

Cited by 17 publications

(5 citation statements)

References 42 publications

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“…This study is in line with the research found by Lisic et al (2016), Hendry (2002), Tian (2014) and Cheung et al (2017), who found management to be self-interested and found that management with high capabilities had low communication with the company's internal audit so that the quality of the provision of financial reports provided has a low quality. This makes auditors have a higher oversight risk which makes companies need to pay higher audit fees.…”

Section: Variablesupporting

confidence: 90%

“…Several studies found different results. Hendry (2002), Tian (2014), andCheung et al (2017) find that highly skilled managers can be better able to engage in enriching their wealth and harming shareholders. Lisic et al (2016) found the quality of providing low financial reports in companies with high managerial abilities.…”

Section: Hypotesis Development Managerial Ability Affects Audit Feesmentioning

confidence: 99%

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Financial Distress and Managerial Ability on Audit Fee

Lauwangsa¹,

Suryadi²,

Adelina³

et al. 2023

JAKO

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Research Purposes. This paper examines the effect of managerial ability on audit fees, examines the effect of financial difficulties on the relationship between managerial ability and audit fees, and examines the effect of opportunistic reporting carried out by management in the form of earning management on audit fees. Research Method. The studies that were carried out used secondary data from 139 non-financial companies listed on the Indonesia Stock Exchange from 2016 to 2020. Research Result and Findings. Through a linear regression of panel data, the study found that higher amount of audit fees was positively influenced by the manager's ability to manage company resources and found that abnormal cash flow real earning management had a positive influence on audit fees. The study also found that financial difficulties did not moderate the relationship between a company's managerial ability and its audit fees, but found that companies with financial difficulties had higher audit fees.

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Section: Variablesupporting

confidence: 90%

Section: Hypotesis Development Managerial Ability Affects Audit Feesmentioning

confidence: 99%

Financial Distress and Managerial Ability on Audit Fee

Lauwangsa¹,

Suryadi²,

Adelina³

et al. 2023

JAKO

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“…Without managerial authority, managers may know about strategic objectives and approach correct execution data, yet with minimal possibility of using this data to change hierarchical structures and schedules in the quest for performance upgrades (Nielsen, 2013). To cap it all, although it is vital to have high authority to enhance performance, “the dark side” of managers' ability should be considered (Mishra, 2014; Tian, 2014). Capable managers may misuse their authority, which leads to manipulation.…”

Section: Introductionmentioning

confidence: 99%

The relationship between supervision quality, CEO’s ability and authority with firm performance

Salehi

Bazrafshan

Hosseinkamal

2021

JFM

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Purpose This paper aims to investigate the relationship between a CEO's ability and authority with firm performance. The authors used a sample of 127 Iranian listed firms for over seven years, from 2011 to 2017. Design/methodology/approach The authors used data envelopment analysis (DEA) to evaluate managers' abilities, and the authors used business strategies to gauge authorities. Also, the methods of Fama–French and Herfindal–Hirschman were used for 889 firm-year observations. Findings The results show that managers' ability based on return on assets can affect firm performance, and skilled managers can improve performance. Originality/value In Iran, managers' abilities and other variables can impact it has been studied. Still, no study has been conducted on managers' strength and their level of authority with the presence of supervision on them.

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“…Another possibility is that executives take advantage of capabilities related to weaknesses in internal control systems and financial reporting practices to design appropriate strategies to undertake fraud (Dellaportas, 2013). Besides, the discretion given to superior managers will be dangerous for the company if it is not balanced by an effective monitoring system (Mishra, 2018;Tian, 2014). Weak monitoring systems also provide a wide opportunity for the executive to act maliciously.…”

Section: Resultsmentioning

confidence: 99%

“…However, several studies have taken the opposite view by proving that managers with superior abilities had a detrimental effect on firms. Tian (2014) and Cheung et al (2017) demonstrated that managers with superior abilities could better create value for their benefit than maximize shareholder value. Managers with superior abilities are also likelier to engage in insider transactions (Wang, 2013).…”

Section: Introductionmentioning

confidence: 99%

The Role of Political Connections in the Relationship Between Managerial Ability and Fraudulent Financial Statements

Ahmad

Subroto

Atmini

2022

JAI

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Research aims: This study seeks to prove empirical evidence regarding the effect of managerial ability on fraudulent financial statements.Design/Methodology/Approach: The population of this study was manufacturing firms listed on the Indonesia Stock Exchange in the 2017-2019 period. The data met the criteria of as many as 90 companies with a total of 270 observations. Then, hypothesis testing in this research used moderated regression analysis.Research findings: Study outcomes demonstrated that managerial ability positively impacted fraudulent financial statements. Furthermore, the positive influence of managerial ability on the fraudulent financial statement was weaker when the company was politically connected.Theoretical contribution/Originality: This study provides empirical evidence regarding the heterogeneity of managerial ability and political connections as predictors of fraudulent financial statements.Practitioner/Policy implication: The study result provides a reference for regulators to provide more effective oversight of companies with superior managerial capabilities and is politically connected.Research limitation/Implication: The limitations in this research can be considered to formulate further research related to variable measurement. In addition, no single measurement method can explain various conditions.

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Board Monitoring and Endogenous Information Asymmetry

Cited by 17 publications

References 42 publications

Financial Distress and Managerial Ability on Audit Fee

Financial Distress and Managerial Ability on Audit Fee

The relationship between supervision quality, CEO’s ability and authority with firm performance

The Role of Political Connections in the Relationship Between Managerial Ability and Fraudulent Financial Statements

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