The Impact of Corporate Governance Regulations on Board Independence and Quality of Financial Information Reporting: A Proposed Study

Rahman, Haseeb Ur; Johl, Satirenjit Kaur; Ahmad, Ayoib Che; Ibrahim, Mohd Yussoff

doi:10.15405/epsbs.2016.08.107

Cited by 5 publications

(4 citation statements)

References 36 publications

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“…The presence of NEDs on the board helps to minimise the weaknesses of the board on the committee (Knyazeva et al, 2013). In this regard, Ibrahim et al (2016) argue that the number of NEDs can considerably influence the entity's financial information disclosure. According to the UK 2012 CG reforms, the balance between the executive board and NEDs tends to reduce both information asymmetry and conflict of interest.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

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Did corporate governance compliance have an impact on auditor selection and quality? Evidence from FTSE 350

2020

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This paper examines the possible effects of corporate governance (GC) on audit quality (AQ) among the FTSE 350 companies. Using a sample of 180 companies from 2012 to 2017 (i.e., 1080 firm-year observations) a binary logistic model has been employed to investigate the CG-AQ nexus. This analysis was supported by conducting a probit logistic model as a sensitivity analysis. Our findings are associative of a heterogeneous impact of CG on AQ post the implementation of the 2012 CG reforms in the UK. For example, although institutional ownership and management ownership can predict AQ, board independence, non-executive directors and audit committee are not attributed to AQ in the UK. This implies that corporate compliance with good CG practices has a limited impact on the decision to select a Big4 auditor in the UK. Despite the limitations of our study, we hope it can motivate further investigations in this area.

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Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…Audit Committee (AC) is seen as one of the most effective CG control tools used in Europe and the Anglo-Saxon model of CG, the 'comply-or-explain' principles (Ibrahim et al, 2016).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Did corporate governance compliance have an impact on auditor selection and quality? Evidence from FTSE 350

2020

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“…Board characteristics refer to the governing apparatus that guides corporate firm governance, given their direct link to managers and shareholders (Hafez, 2017). Board characteristics increase the prospect that owners of funds would be able to monitor, control, and supervise the activities of the managers either through voting on crucial matters or through the board of directors, which would safeguard shareholders' investment (Ibrahim, Che-Ahmad, Johl, & Rahman, 2016). In this study, board characteristics that were considered included board size, board independence, board gender diversity, and board meetings.…”

Section: Board Characteristicsmentioning

confidence: 99%

Effect of Board Characteristics on Financial Performance of Listed Healthcare Firms in Nigeria

Abu

Bamidele²

2022

amor

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Purpose: This study was conducted to investigate the relationship between board characteristics and the financial performance of listed healthcare firms in Nigeria. Research methodology: The study, which covered a seven-year period from 2015-2021, made use of secondary data sourced from published annual reports and accounts of five purposively selected companies on the Nigerian Stock Exchange. Data analysis was done by means of descriptive statistics, a correlation matrix, and some diagnostic tests using STATA 13. Results: The findings show that board characteristics consisting of board size, board independence, board gender diversity, and board meetings have a negative, non-significant relationship with performance. This study concludes that board size should be increased, the number of non-executive members of the board should be increased with members having vast knowledge and competency in governance, the number of women on the board should be increased, and frequent and necessary board meetings should be encouraged and possibly regulated in order not to create room for waste of resources and time. Limitations: The study’s main limitations are that it did not use other financial-based measurements for financial performance, used incomplete data, and used a small sample size. Contribution: The results of the study, based on the findings, will assist firms in the recommendation of the board size number and how its effectiveness should be increased and sustained. The study also contributes to other extant literature, as not many studies have been conducted in this area of the healthcare firms listed on the Nigerian Stock Exchange. Keywords: 1. Board independence 2. Board meeting frequency 3. Board gender diversity 4. Healthcare firms 5. Financial performance

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“…Research related to this board's characteristics was conducted [25][26][27], but these studies' results led to inconsistent conclusions. According to one study, inconsistent findings produced by corporate governance research resulted from differences in the legal and regulatory policies.…”

Section: Introductionmentioning

confidence: 99%

Corporate Governance Compliance in Banking Industry: The Role of the Board

Zulfikar

Lukviarman

Suhardjanto

et al. 2020

Journal of Open Innovation: Technology, Market, and Complexity

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This study seeks to supply empirical evidence for how board characteristics influence corporate governance compliance in the Indonesian banking industry. Corporate governance compliance level represents a company’s actions to fulfill regulatory obligations that aim to protect the public from potential investment losses in the banking industry. This research was conducted by analyzing the influence of board characteristics, specifically how a board of commissioners’ institutions and their instruments affect corporate governance compliance. The entire banking industry, which was listed on the Indonesia Stock Exchange from 2010 to 2015, was employed as the population for this research. Purposive sampling was used as the sampling technique, resulting in 195 observations. To test this study’s hypotheses, multiple regression was applied as the data analysis method. The results revealed that the size of the board of commissioners, the proportion of independent commissioners, the experience of commissioners, and the size of the audit committee were factors that encouraged management in the banking industry to improve their firms’ corporate governance compliance. This indicates that monitoring from the board acts as an effective mechanism for reducing information asymmetry. This research also proves that open innovation following regulations can increase compliance with laws.

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The Impact of Corporate Governance Regulations on Board Independence and Quality of Financial Information Reporting: A Proposed Study

Cited by 5 publications

References 36 publications

Did corporate governance compliance have an impact on auditor selection and quality? Evidence from FTSE 350

Did corporate governance compliance have an impact on auditor selection and quality? Evidence from FTSE 350

Effect of Board Characteristics on Financial Performance of Listed Healthcare Firms in Nigeria

Corporate Governance Compliance in Banking Industry: The Role of the Board

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