Independence and Financial Knowledge on Audit Committee with Non-compliance of Financial Disclosure: A Study of Listed Companies Issued with Public Reprimand in Malaysia

Hamid, Khamsi Che Abdul; Othman, Sarina; Rahim, Memiyanty Abdul

doi:10.1016/j.sbspro.2015.01.429

Cited by 12 publications

(13 citation statements)

References 16 publications

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“…As for EXPERT and LEGAL show that audit committee with financial expert and legal background members does not affect the contribution of environmental disclosure quality among the ESIs. The findings are insignificant with the previous studies' findings, Che Abdul Hamid et al (2015), and Krishnan et al (2011). This can be concluding that the requirement of the disclosure about the environmental is still on voluntary basis.…”

Section: Resultscontrasting

confidence: 74%

“…However, this study indicates that well-educated and expert AC members are better prepared for their monitoring roles and perform their duties effectively and efficiently. Any negative relation from the previous study is that they are further clarified that the span of the committee and financial expertise of the AC members give huge negative relationship (Che Abdul Hamid et al, 2015). Thus, the hypothesis can be developed as follow.…”

Section: Quality (Edq)mentioning

confidence: 94%

See 1 more Smart Citation

Audit Committee Characteristics and Environmental Disclosure Quality Among Malaysian Environmentally Sensitive Industries

Azman¹

2020

European Proceedings of Social and Behavioural Sciences

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Section: Resultscontrasting

confidence: 74%

Section: Quality (Edq)mentioning

confidence: 94%

Audit Committee Characteristics and Environmental Disclosure Quality Among Malaysian Environmentally Sensitive Industries

Azman¹

2020

European Proceedings of Social and Behavioural Sciences

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“…Consequently, H2 and H3 cannot be supported. The results are consistent with Khamsi et al (2015)'s study, where they discovered that even if companies had met the minimum requirements of the audit committee 's independent and financial knowledge, the companies are still being reprimanded for failure in financial disclosure. It means some attribute of audit committee effectiveness do not have an effect on the quality of reporting.…”

Section: Hierarchical Multiple Regressionsupporting

confidence: 88%

Audit Committee Effectiveness and Key Audit Matters

Abu¹,

Jaffar²

2020

AJAG

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Key audit matters (KAMs) are important for financial statement users as they provide clarity and in-depth understanding of financial statement audits. Empirical research on KAMs remains at an early stage particularly in Malaysia. Therefore, the aim of this study is to analyse the disclosure practises of KAMs and to investigate the effects of audit committee effectiveness on KAMs. The study sample consists of the top 100 FTSE index companies in 2016, the first year of implementation of mandatory KAM disclosure under the International Standard of Auditing 701 (ISA 701). Findings show that the majority of sample companies reported two KAMs, mainly about 'revenue recognition' and 'impairment of goodwill and intangible assets'. Results indicate that independent, financial experts and the number of audit committee meetings have a negative relationship with the number of KAMs. However, only companies that have frequent audit committee meetings are able to reduce the number of KAMs. Results provide support on the role of audit committee effectiveness to reduce agency problem between manager and shareholders. Additionally, results provide important policy implications whether imposing unnecessarily high criteria of audit committee members can contribute towards an informative auditor's report.

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“…Previous studies assessed the influence of independence (Delgado-García et al , 2010; Zhang et al , 2007), numbers of meetings (Delgado-García et al , 2010), size (Bédard and Gendron, 2010; Madi et al , 2014), existence (Samaha et al , 2012; Alves, 2013,) and financial expertise (Liu et al , 2014; Iyer et al , 2012) of the AC. These studies evaluate the influence of AC on earning management (Alves, 2013; Inaam and Khamoussi, 2016; Mohd Saleh et al , 2007), corporate governance (Rahim et al , 2015; Crişan and Fülöp, 2014), agency cost (Cai et al , 2015) and financial reporting (Othman et al , 2014; Hamid et al , 2015). However, the role AC plays in the level and quality of voluntary disclosures is still ambiguous.…”

Section: Introductionmentioning

confidence: 99%

Do audit committee structure increases influence the level of voluntary corporate governance disclosures?

Talpur

Lizam

Zabri

2018

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Purpose The purpose of this paper is to provide an insight into the voluntary corporate governance disclosure and AC practices among Malaysian property listed companies. Along with that, the influence of AC characteristics on voluntary corporate governance disclosure was also examined. Design/methodology/approach The study used the content analysis of annual reports to extract voluntary corporate governance disclosures and audit committee (AC) practices. The relationship between voluntary corporate governance disclosures and AC characteristics was examined by using the panel data regression analysis. Findings Based on the results of the study, it can be concluded that all three variables: AC size, AC independence and AC meetings are the factors that influence the level of voluntary corporate governance disclosure among sampled companies. Practical implications This study provides an overview of voluntary corporate governance disclosures practices, which have shown an increasing trend of information disclosed by Malaysian listed property companies. Additionally, the AC structure was also found satisfactory with highly independent and higher number of meetings as required by Malaysian Code of Corporate Governance and Bursa Malaysia requirement. Social implications By filling the gap identified in this study, investors’ confidence will boost as they will have sufficient information about the Malaysian listed property companies – resulting in strengthening competitiveness and growth by attracting local and foreign investments in the country. The influence of AC attributes over the quality of disclosure among Malaysian listed properties companies is identified, and regulators introduce more explicit rules for AC mechanism for improving the disclosure quality. The increase in the quality of information provided in the annual reports will lead toward highly efficient and transparent stock market. Originality/value This study has provided an insight into corporate governance of listed companies in Malaysia, which will contribute to the extended literature. Along with that, it will also provide an overview of corporate governance structure among Malaysian listed companies to the policy makers.

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Independence and Financial Knowledge on Audit Committee with Non-compliance of Financial Disclosure: A Study of Listed Companies Issued with Public Reprimand in Malaysia

Cited by 12 publications

References 16 publications

Audit Committee Characteristics and Environmental Disclosure Quality Among Malaysian Environmentally Sensitive Industries

Audit Committee Characteristics and Environmental Disclosure Quality Among Malaysian Environmentally Sensitive Industries

Audit Committee Effectiveness and Key Audit Matters

Do audit committee structure increases influence the level of voluntary corporate governance disclosures?

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