The Corporate Governance Effects of Audit Committees

Turley, William S.; Zaman, Mahbub

doi:10.1007/s10997-004-1110-5

Cited by 271 publications

(230 citation statements)

References 54 publications

Supporting

Mentioning

213

Contrasting

Unclassified

Order By: Relevance

“…This finding is indeed similar to Turley and Zaman (2004) and Peasnell et al (2005). They find no evidence that the mere existence of audit committee affects the extent of earnings management and suggest that the effectiveness of audit committees should be assessed from the perspective of their quality, experience, independence and modes of operation in future research.…”

Section: Exploratory Statistics Results Interpretation and Discussionsupporting

confidence: 65%

The Impact of Managerial Opportunism on Earnings Reliability

Chang¹

2015

IJEF

View full text Add to dashboard Cite

This study is motivated by the increasing incidences of corporate failures caused by fraudulent accounting and breaches in corporate governance and ethical conducts. For example, it is expected that managers will resort to activities that are not consistent with appropriate governance and ethics just to keep up with the market expectations to safeguard their position. This study investigates the impact of five managers" opportunistic incentives on the reliability of firms" reported earnings (namely free cash flow, abnormal capital expenditure, bonus plan, distress sign and leverage), controlled by six other widely implemented standard structural governance mechanisms. The earnings reliability tests are conducted using the balanced panel data analysis specification covering 323 sample firms with continuous accounting and corporate governance data of 15 years beginning 1993. Consistent with literature, the results reveal that firms" earnings reliability is significantly related to all managerial opportunism attributes, implying the adverse effect of these incentives on the usefulness of accounting information in assessing management"s stewardship. These findings suggest the need for a better management mechanism to integrate governance and effective enforcement of control requirements to mitigate managerial opportunism and hence uphold the quality of published accounting information.

show abstract

Section: Exploratory Statistics Results Interpretation and Discussionsupporting

confidence: 65%

The Impact of Managerial Opportunism on Earnings Reliability

Chang¹

2015

IJEF

View full text Add to dashboard Cite

show abstract

“…This means that audit committee can strengthen the internal audit function by protecting their independence and ensure that audit recommendations are implemented by management. Internal auditors on the other hand, can be important resources to the audit committee as it strives to fulfil its responsibilities (Turley and Zaman, 2004). The assertion of Turley and Zaman (2004) is in line with Bishop et al (2000) who posit that, internal audit is a valuable resource that can provide information needed for audit committee to meet their governance mandate.…”

Section: Introductionmentioning

confidence: 56%

The Organizational Independence of Internal Auditors in Ghana: Empirical Evidence from Local Government

Dawuda

Aninanya

Alnaa

2015

Asian Journal of Economic Modelling

View full text Add to dashboard Cite

show abstract

“…Therefore, in an environment without monitoring tools and effective market regulations, managers are more likely to deviate from protecting the shareholders' interests (Turley and Zaman 2004;Al-Matari et al 2012). Thus, the existence of successful and effective corporate governance practices such as an audit committee is essentially to reduce such conflicts (Al-Matari 2013) and to achieve good performance (RamCharan 1998;Ainuddin and Abdullah 2001).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Audit Committee Effectiveness and Company Performance: Evidence from Jordan

Alqatamin¹

2018

AFR

121

106

View full text Add to dashboard Cite

This paper seeks to investigate the effect of audit committee characteristics on the company's performance. The sample consists of 165 non-financial companies listed on the Amman Stock Exchange (ASE) over the period [2014][2015][2016]. The results of the study show that the audit committee size, independence and gender diversity have a significant positive relationship with firm's performance, whereas experience and frequency of meetings has an insignificant association. The results of the study could be beneficial for managers and boards in making suitable choices about audit committee characteristics and corporate governance mechanisms to enhance the company's performance. The study gives policy makers a better understanding of the different characteristics required of an audit committee, for incorporation in future policy preparation to protect the shareholders' interests. The relationship between audit committee characteristics and company performance is still ambiguous. This study contributes to the literature by identifying the role of audit committee characteristics in company performance, providing evidence for the view that performance is driven by specific audit committee characteristics.

show abstract

The Corporate Governance Effects of Audit Committees

Abstract: accountability, audit committee effectiveness, audit committee research, corporate governance,

Cited by 271 publications

References 54 publications

The Impact of Managerial Opportunism on Earnings Reliability

The Impact of Managerial Opportunism on Earnings Reliability

The Organizational Independence of Internal Auditors in Ghana: Empirical Evidence from Local Government

Audit Committee Effectiveness and Company Performance: Evidence from Jordan

Contact Info

Product

Resources

About