Does Corporate Governance Predict Firm Profitability?  an Empirical Study in Oman

Ahmed, Essia Ries; Alabdullah, Tariq Tawfeeq Yousif; Thottoli, Mohammed Muneerali; Maryanti, Eny

doi:10.21776/ub.ijabs.2020.28.1.7

Cited by 32 publications

(18 citation statements)

References 19 publications

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“…(Hoes and Gehlert, 2020) believe that the three-lines-of-defence model of compliance environment and culture within organizations can prevent major scandals. Corporate governance mechanisms in Oman are not as effective as in more developed countries and that therefore regulators in such a less developed country should impose and encourage substantial corporate governance practices instead of merely adhering to pro-forma practices (Ahmed et al , 2020; Baatwah et al , 2015). International Accounting Standards (IAS) are applicable to the Oman business environment (Ojha and Kashoob, 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

The relevance of compliance audit on companies’ compliance with disclosure guidelines of financial statements

Thottoli

2021

JOIC

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Purpose This paper examines the relevance of compliance audit on companies’ compliance with disclosure guidelines of financial statements with special reference to the case of companies registered in the Muscat Securities Market (MSM), Oman. Design/methodology/approach This paper adopts a direct measure of compliance prescribed and published in the annual report of Capital Market Authority (CMA) and its executive regulation from period 2011 to 2019. Findings The finding shows that there is a positive association with audit on companies’ compliance with disclosure guidelines of financial statements that enrich companies to ensures adherence to regulatory guidelines of Oman. Practical implications The key limitation of the study is that it depends on a transparency indicator from a secondary source. Further, this might encourage companies to appoint qualified compliance officer which will be a value addition for best practice of corporate governance (CG) of the organizations. Originality/value The evidence recommends that audit on companies’ compliance with disclosure guidelines of financial statements is a significant factor that helps the company to enhance its financial performance and provides assurance to the government that the company follows applicable rules and regulations. It also recommends that the appointment of designated compliance officer assures adherence to companies’ regulatory guidelines of Oman. Besides, conducting research in audit on companies’ compliance with disclosure guidelines of financial statements brings novelty in the literature in emerging countries. As per best knowledge of the researchers, there has been no empirical study (within the literature) observed, which inspires much encouragement to do this study.

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Section: Literature Reviewmentioning

confidence: 99%

The relevance of compliance audit on companies’ compliance with disclosure guidelines of financial statements

Thottoli

2021

JOIC

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“…It is to be noted that CG system deals with the setup tools that the forms, actions and activities are managed, to maximizing principal value via the duty of directors and enhance firm's performance (Ahmed, Alabdullah, Shaharudin, & Putri, 2020;Alabdullah, 2018). Ahmed, Alabdullah, Thottoli, and Maryanti (2020) in their study focused on testing the relation between CG tools and firms' performance in GCC companies. This study indicated that a positive relation among all predictors is found: ownership, board size, audit commission, gender and firm financial performance.…”

Section: Literature Reviewmentioning

confidence: 99%

“…CG in GCC is one of the oldest and most successful experiences in the Arab world (Ahmed, Alabdullah, Thottoli, & Maryanti, 2020). Also, it is one of the basics of monitoring the path of companies.…”

Section: Introductionmentioning

confidence: 99%

“…Several countries around the world are suffering from certain problems such as low level of performance, collapse in some large companies, financial scandals and corruption, weak regulatory system, and low level of disclosure and missing transparency. Hence, these problems have affected the global markets in the majority of the GCC countries (Ahmed, Alabdullah, Thottoli, & Maryanti, 2020).…”

Section: Introductionmentioning

confidence: 99%

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A cross-sectional analysis of the influence of corporate governance features on the organizational outcomes: An assessment

Alabdullah¹,

Ahmed²

2021

IIUC Studies

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This work aimed at testing the influence of corporate governance features on the organizational outcomes in one of the countries of the Gulf Cooperation Council (GCC) which is Qatar. The data was used for the organizations that belong to non-financial sector. The findings revealed that the size of audit commission, the board of directors size, and independency have positive influence on organizational outcomes represented by return on assets. In addition, the same positive influence could be found between the size of the audit commission and independency with return of equity as a second measurement of the organizational outcomes. Moreover, meeting of the board has a significant negative influence on organizational outcomes. The present work is considered as the first study that tests its predictor variables in its relationship with organizational outcomes. The considerable contribution of this study lies in identifying the previous studies gap for the GCC countries and analyses several viable studies that might probably be useful for improving corporate governance system in the non-financial sector. IIUC Studies Vol.17, December 2020: 9-26

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“…Successful implantation of complete functional (ICT enabled) software application boosts students' skills and knowledge and finally encourages the successful building of knowledge over the process of entrepreneurial innovation. Students from various disciplines showed higher confidence levels on ICT-enabled financial statements to prepare and compare CVP analysis and breakeven analysis (Banerjee et al, 2018;Ahmed et al, 2020;Alabdullah et al, 2019). Business start-ups used CVP ignorantly and have suggested that ICT-enabled CVP analysis, breakeven analysis and such other accounting tools to be introduced among young aspirant entrepreneurs so that improve productivity (Abdullahi et al, 2017).…”

Section: Proficiency In Preparing Cost Volume Profit Analysismentioning

confidence: 99%

Antecedent of lack of proficiency and the need for an automated financial plan for the course entrepreneurship creativity and innovation

Thottoli

2021

JEET

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Purpose This study aims to analyze antecedents of students’ lack of proficiency (in preparing financial statements, cash flow statements, cost volume profit analysis and budgeting) and the need for an automated financial plan (AFP) for the course entrepreneurship creativity and innovation within Higher Educational Institutions (HEIs) in Oman. Design/methodology/approach The study used a set of four instrument items containing questionnaires to measure the variables in this study. A cross-sectional study was carried out at various universities and colleges in Oman during the year 2020, comprising 174 students from different majors. The results were analyzed using structural equation modelling-partial least squares. Findings The findings of the study suggest that the students in the universities and colleges should be educated and facilitated to enable them to gain more knowledge in finance/accounting through an AFP and, thus, warrants preparation of fair financial estimation for their innovative business project. A majority of students strongly support the need for implementing an AFP for their compulsory course, entrepreneurship creativity and innovation in HEIs in Oman. Research limitations/implications This research is restricted to AFPs for the students in Oman who study the course entrepreneurship creativity and innovation. It is recommended that future study may extend to automated business plans for the students to improve their practical knowledge pertinent to the readiness of Omani students, as well as to give material transformation of internal environments in HEIs. Practical implications Unique AFP for university and college students for their compulsory course, entrepreneurship creativity and innovation provide important resources for policymakers responsible for HEIs, allowing them to improve the quality of preparing a financial plan for their innovative business ideas and new business start-ups. Originality/value There has been little discussion about the need for an AFP for the students who study the course entrepreneurship creativity and innovation. This study analyzes accounting standards as antecedents about students’ lack of proficiency towards an AFP for the course entrepreneurship creativity and innovation of universities and colleges in Oman which tries to fill this gap in the existing research. Hence, this study is considered as a novel approach that has not been broadly discussed in the earlier research.

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Does Corporate Governance Predict Firm Profitability? an Empirical Study in Oman

Cited by 32 publications

References 19 publications

The relevance of compliance audit on companies’ compliance with disclosure guidelines of financial statements

The relevance of compliance audit on companies’ compliance with disclosure guidelines of financial statements

A cross-sectional analysis of the influence of corporate governance features on the organizational outcomes: An assessment

Antecedent of lack of proficiency and the need for an automated financial plan for the course entrepreneurship creativity and innovation

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