Dynamics of audit lag − board of directors and audit committees’ effect

Nehme, Rabih; Assaker, Guy; Khalife, Rita

doi:10.22495/cocv12i3c3p1

Cited by 16 publications

(49 citation statements)

References 31 publications

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“…We observe varying degrees of significance with regard to the industry control variables (Nehme et al, 2015). With regard to complexity measured by the ratio of inventory and receivables to total assets, a positive association with ARD has been established by studies such as Lee and Jahng (2008), Habib (2015) and Ghafran and Yasmin (2017).…”

Section: Literature Review and Hypotheses 31 Theoretical Reviewmentioning

confidence: 72%

“…Oussii and Taktak (2018) establish a negative association between AC's financial expertise and ARD. However, Nehme et al (2015) hold the view that having a large number of financial experts on the board is a potential source of conflicts with the auditors and may lead to a longer ARD. Nehme et al (2015) argue that firms having large ACs with more frequent meetings and financial experts tend to exhibit longer ARD.…”

Section: Literature Review and Hypotheses 31 Theoretical Reviewmentioning

confidence: 99%

“…The relatively few studies on ARD and CG have focused on certain board features (Nehme, Assaker and Khalife, 2015;Alfraih, 2016) or audit committee (AC) features (Tauringana et al, 2008;Nehme et al, 2015;Sultana et al, 2015;Ghafran and Yasmin, 2017). A handful of the studies have attempted to study the influence of the combined CG characteristics on ARD.…”

Section: Introductionmentioning

confidence: 99%

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Corporate governance and the timeliness of audited financial statements

Mathuva

Tauringana

Owino

2019

JAEE

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Purpose The nature of corporate governance (CG) mechanisms in an entity may influence the timeliness of the audited annual report. The purpose of this paper is to argue that the “quality” of CG in a firm has a significant association with the time it takes the audited annual report and financial statements to be released. Design/methodology/approach Using a set of 543 firm-year observations over the period 2007–2016, the authors examine whether a validated CG-Index is associated with audit report delay (ARD). The authors employ both granular as well as aggregated approaches to the analyses. In addition, the authors include control variables known to have an association with ARD in the panel data regressions. Findings The findings, which are robust for self-selection among other checks, reveal that financial expertise in the audit committee, board size, board meetings and independence in the board are associated with longer ARDs. Some CG attributes such as board diversity (i.e. women and different nationalities in the board) are associated with improved timeliness of the annual reports. The results also reveal that a longer tenure for independent directors in the board is associated with a shorter ARD. Overall, the authors find that the composite CG score has a positive influence on the timeliness of annual reports. Research limitations/implications The study focuses on listed companies in one developing country. Additional studies focusing on other jurisdictions could yield more results. Practical implications The study is useful in highlighting those CG characteristics firms should focus on toward the attainment of timely corporate reporting to aid in decision making by users. Originality/value The study is unique since it emphasizes the importance of focusing on an aggregate CG-Index, and the contribution of the CG-Index toward the timeliness of annual reports.

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Section: Literature Review and Hypotheses 31 Theoretical Reviewmentioning

confidence: 72%

Section: Literature Review and Hypotheses 31 Theoretical Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Corporate governance and the timeliness of audited financial statements

Mathuva

Tauringana

Owino

2019

JAEE

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“…The signaling power of CSR is determined by its effective communication to the largest group of stakeholders (McWilliams and Siegel, 2001;Godfrey et al 2009). Indeed, discussing a firm's social activities, charitable contributions, environmental projects and their development to human capital acts as a dialogue signaling bank's good standing and interest in responding to society's obligations (Simpson and Koher, 2002;Gray, Kouhy and Lavers, 1995;Nehme et al 2015). Consequently, firms with better disclosure levels have better stock prices (Gelb and Zarowin 2002).…”

Section: Csr and Stock Performancementioning

confidence: 99%

Do social responsibility disclosures show improvements on stock price?

Jizi

Nehme

Salama

2016

The Journal of Developing Areas

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The 2007 financial crisis was the largest shock to the financial markets not only to the United States but the world as a whole since 1930. Lack of information and confusion in financial markets causes sharp declines in banks capitalization. The link between stock price behavior and the content of social disclosure is lacking in the literature and there is no clear understanding whether they are valued or disregarded by financial markets. CSR is the voluntary interaction between the firm and its stakeholders through addressing their social and environmental concerns with business activities. This paper contributes to the literature by drawing conclusions on whether CSR disclosure, which communicates firm involvement and level of commitment to society, shows improvement on banks' stock prices. Banks' social behavior is equally important to investors and customers risk assessment on one hand, and to regulators' reputation and the public confidence in the banking system on the other hand. Poorly controlled and operated banks can impose extensive negative effects not only on investors but also on their societies; therefore, effective management manages risk not only through financial performance but also through reflecting their good citizenship. The research examines a sample of national commercial banks, as the banking sector was experiencing increasing pressure that scratched stakeholders and investors trust during the latest financial crisis. In addition to examining a unique sample of banks during 2009-2010, the study contributes by employing content analysis technique to measure the content; i.e. the existence and comprehensiveness; of CSR disclosure in banks' annual reports. We find that the informative content of CSR disclosure is appreciated by stock participants and is of value. The reported results signal investors' interest in and consideration to CSR disclosure when valuing assets. Moreover, our results suggest that management involvement and communication of their CSR activities through better disclosure content is a potential tool to enhance shareholders value. The documented results are likely to encourage banking institutions in the developing countries to invest and report on their social activities. Banking institutions may enhance their shareholders welfare by investing in effectual social engagements and considering the content of CSR disclosure rather than classifying social involvement as nonrewarding activity.JEL Classifications: M140, G120, G010

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“…Potential problems in financial reporting are more likely to be discovered by larger audit committees because easily to reduce audit report lag (Husaini et al, 2019, Hussin et al, 2018, Hassan, 2016, Sultana et al, 2015, Li et al, 2014and Shukeri & Islam, 2012. Different from those studies, research conducted by Maggy & Diana (2018), Ahmed & Che-Ahmad (2016), Nehme (2015) and Wan-Hussin & Bamahros (2013) found that the size of the audit committee has an insignificant effect on audit report lag.…”

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confidence: 86%

Corporate governance mechanisms and audit report lag moderated by audit complexity

Sari

Subroto²,

Ghofar³

2019

IJRBS

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This study aims to verify the correlation between corporate governance mechanisms, reflected independent commissioners, audit committee and audit tenure to audit report lag, and the audit complexity has able to moderate the relationship between corporate governance mechanisms to audit report lag. This study uses a population of manufacturing companies that publish their financial statements on the Indonesian Stock Exchange in 2015-2017. The samples are selected with a purposive sampling method. There is 100 manufacturing company selected as the sample for the period of 2015-2017. This study was tested by using the Moderate Regression Analysis test. The results of this study indicate that the audit committee and audit tenure have a negative effect on audit report lag, but the independent commissioner has an insignificant effect on audit report lag. Audit complexity is proven to increase audit report lag as an increase audit committee. This research provides the capital market authority (OJK) to issue policies and strict sanctions, thus encouraging companies to publish audited financial statements more time.

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Dynamics of audit lag − board of directors and audit committees’ effect

Cited by 16 publications

References 31 publications

Corporate governance and the timeliness of audited financial statements

Corporate governance and the timeliness of audited financial statements

Do social responsibility disclosures show improvements on stock price?

Corporate governance mechanisms and audit report lag moderated by audit complexity

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