The Effect of Board Independence on the Earnings Quality: Evidence from Portuguese Listed Companies

Alves, Sandra

doi:10.14453/aabfj.v8i3.3

Cited by 83 publications

(96 citation statements)

References 95 publications

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“…It is believed that a smaller board is able to direct and make better decisions and that a larger board size may lead to less firm performance. Several prior studies document the favorable impact of outside directors on firm decisions aimed at enhancing shareholder wealth (Alves, 2014) but in KSA we can found that all performance measures are insignificantly affected by the independency of board of directors. Overall, the reasons behind insignificant results in Saudi might be as follow: Saudi's listed companies are recently adopted the corporate governance regulations and the effect of those practices are still not have been appears…”

Section: Empirical Studycontrasting

confidence: 61%

Corporate Governance and Firm Performance: Evidence from Saudi Arabia

Buallay¹,

Hamdan²,

Zureigat³

2017

AABFJ

210

144

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This study aimed to measure the impact of Corporate Governance on Firm performance of listed companies in Saudi stock exchange. The study methodology was a pooled data collected from the Saudi stock exchange (TADAUWL) for the period from 2012 to 2014. The study sample is 171 listed companies. The study independent variable is Corporate Governance principals. The dependent variable is Firm performance which was measured using ROA, ROE and Tobin's Q. The study also utilized five control variables in order to help measuring the relationship between Corporate Governance and Firm Performance. In conclusion, the study found that the governance level was 61.4% in Saudi stock exchange which is considered high compared to previous studies. The results of the study test indicate that there is no significant impact for corporate governance adoption on firm's operational and financial performance in the listed companies in Saudi stock exchange. By testing the Tobin's Q model the study also concluded that there's no significant impact for ownership of the largest shareholder and independency of Board of Directors on firm's market performance. Significant impact was found for the ownership and the size of the Board of Directors on firm's performance. AbstractThis study aimed to measure the impact of Corporate Governance on Firm performance of listed companies in Saudi stock exchange. The study methodology was a pooled data collected from the Saudi stock exchange (TADAUWL) for the period from 2012 to 2014. The study sample is

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Section: Empirical Studycontrasting

confidence: 61%

Corporate Governance and Firm Performance: Evidence from Saudi Arabia

Buallay¹,

Hamdan²,

Zureigat³

2017

AABFJ

210

144

View full text Add to dashboard Cite

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“…Board size refers to the total number of directors on the board of directors of a firm. The importance of board size in influencing firm performance is evidenced by number of empirical studies in recent years (Fuzi, Adliana, & Julizaerma, 2016;Alves, 2014;Hillman & Dalziel, 2003) However, empirical findings have been mixed and inconclusive. A number of issues have ISSN 2330-8362 2017 www.macrothink.org/rbm 2 been attributed with respect to the conflicting findings of past studies.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Corporate Board Size on Firm Performance: Evidence from Ghana and Nigeria

Badu¹,

Appiah²

2017

RBM

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This paper examines the impact of corporate board size on firm performance for a sample of 137 listed firms in Ghana and Nigeria. Our findings suggest a statistically significant and positive relationship between board size and firm performance, implying that in Ghana and Nigeria allowing corporate board size to be dependent of firm size tends to improve firm performance. Our findings are consistent across different kinds of models that deal with different types of endogeneities and corporate performance proxies. Our results provide empirical support for agency theory, which suggests that optimal corporate board size effectively advise, monitor and discipline management thereby improving firm performance.

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“…In short, it is affirmable that past research supports the hypothesis that high percentage of independent outside directors on the board clearly contributes in controlling the practices of earnings management (Alves, 2014). This implies that independent directors cause improvement of the level of earnings quality by reducing the earnings management's level.…”

Section: Board Independencementioning

confidence: 77%

Does the Monitoring Mechanisms Considered as Dilemma against the Practices of Earnings Management

Al-Sraheen¹,

Saleh²

2017

IBR

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This paper mainly aims to explore the role of monitoring mechanisms in limiting the earnings management practices among service firms in Jordan. The data used in this study were from the financial annual reports of 59 ASE listed service firms in 2015. The results of multiple regression analysis demonstrate the fairly varied influence of board of directors' variables. This paper presented three hypotheses covering board independency, CEO duality and audit committee. According to the results, internal monitoring mechanisms significantly impact the level of the practices of earnings management and the reduction of the agency conflict. Additionally, the regulatory bodies in Jordan should focus more on the role of internal monitoring mechanisms in Jordanian companies in terms of effectiveness in order to improve the quality of financial reports can be improved via the assurance of high quality of earnings. Finally, this study becomes a catalyst for more research on quality of financial reports and earnings quality in Jordan and other countries where there is still lack of studies in this domain.

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The Effect of Board Independence on the Earnings Quality: Evidence from Portuguese Listed Companies

Cited by 83 publications

References 95 publications

Corporate Governance and Firm Performance: Evidence from Saudi Arabia

Corporate Governance and Firm Performance: Evidence from Saudi Arabia

The Impact of Corporate Board Size on Firm Performance: Evidence from Ghana and Nigeria

Does the Monitoring Mechanisms Considered as Dilemma against the Practices of Earnings Management

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