The impacts of tenure diversity on boardroom and corporate carbon emission performance: Exploring from the moderating role of corporate innovation

Cahyono, Suham; Harymawan, Iman; Kamarudin, Khairul Anuar

doi:10.1002/csr.2500

Cited by 20 publications

(14 citation statements)

References 69 publications

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“…The control variables were selected based on previous research, including the number of directors (DIRSIZE) (Roiston & Harymawan, 2022), number of commissioners (COMSIZE) (Guan et al, 2016;Ningsih et al, 2021), and independent directors (INDCOM) (Muttakin et al, 2018) to represent good corporate governance. Firm size (FIRMSIZE) (Abdullah et al, 2023) and leverage (LEV) (Cahyono, Harymawan, & Kamarudin, 2023) were chosen to represent company characteristics, while return on assets (ROA) (Ningsih et al, 2021) and loss (LOSS) were selected as profitability ratios to represent company performance, as in Guan et al (2020). The definitions of the variables used in this study for further information are listed in Table 2.…”

Section: Data and Research Methodologymentioning

confidence: 99%

The School-ties Between Top Management Executive and Audit Partner: Exploring From Earnings Management in Indonesia

Soeprajitno,

Ningsih,

Harymawan

et al. 2023

Sage Open

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The objective of this study is to investigate the impact of school ties between top management executives, such as the Chief Executive Officer and Chief Financial Officer, and external parties, including auditors, on a company’s earnings management practices. This study uses fixed effect regression method to test the hypotheses, whether school ties between top management executives and audit partner will affect on the practical earnings management. The authors obtained sample from Indonesia Stock Exchange Commission during 2010 to 2022 and includes several causality tests to robust the empirical result from current study. Our findings suggest a noteworthy positive association between school-ties linking the Chief Executive Officer (CEO) and the Auditor with Earnings Management. However, our analysis reveals that other combinations of school ties exhibit an opposite effect. The findings of this study suggest that ties between internal and external parties within a company may be a factor that investors should carefully consider when evaluating the accuracy and reliability of financial reports. As such, it may be prudent to avoid investing in such companies. Despite prior research extensively examining the measurement of accrual-based earnings management, the literature lacks discussion regarding its association with the potential influence of ties. Thus, this study aims to fill this gap by investigating the relationship between top management school ties and earnings management.

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Section: Data and Research Methodologymentioning

confidence: 99%

The School-ties Between Top Management Executive and Audit Partner: Exploring From Earnings Management in Indonesia

Soeprajitno,

Ningsih,

Harymawan

et al. 2023

Sage Open

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“…Board gender diversity has been reported to positively affect a company's environmental decisions (Van Hoang et al, 2021) and its plans to reduce emissions (Cicchiello et al, 2021;Haque, 2017). The diversity of the board determines the company's overall tendency toward implementing green governance activities (Cahyono et al, 2023). Qiu et al (2022) demonstrated that the existence of female directors has a significant effect on companies' decisions and that the higher the number of female directors, the higher the ESG performance.…”

Section: Board Gender Diversity Emission Reduction Targets and Carbon...mentioning

confidence: 99%

Emission targeting and carbon emissions: The moderating effect of female directors

Nimer,

Abdelqader,

Kuzey

et al. 2024

Bus Strat Env

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This study first investigates emission reduction targeting among polluting firms in the basic materials sector. We assess whether firms that produce a greater amount of carbon emissions are more likely to set emission reduction targets in the basic materials sector. Further, we test whether female directors are influential in moderating between emission reduction targeting and carbon emissions. The sample covers publicly traded firms in the basic materials sector listed in the Thomson Reuters Eikon database between 2010 and 2021. We perform country and year fixed effects regression analysis, as the firms in the sample are from diverse countries. We find that firms that produce more carbon emissions are more likely to set emission reduction targets and that female directors negatively moderate the relationship between emission reduction targeting and carbon emissions. Thus, firms with more female directors on their boards are more likely to reduce their carbon emissions via emission reduction targeting.

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“…Specifically, auditors from specific ethnic backgrounds may have a market advantage in providing high-quality and cost-effective audit services. However, the Indonesian audit market operates under a unique audit mechanism, necessitating further exploration of the impact of auditor ethnicity on the determination of audit fees Cahyono et al . (2023).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Does auditor ethnicity matter in determining audit fees? Some empirical evidence from Indonesia

Cahyono¹,

Harymawan²,

Wardani³

et al. 2023

ARJ

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Purpose This study aims to investigate the presence of the audit partner ethnicity on audit fees within the Indonesian context. Design/methodology/approach The sample consists of 803 firm-year observations from the Indonesia Stock Exchange during the period of 2014–2018. The study uses fixed-effect regression analysis to examine the relationship between audit partner ethnicity and audit fees. Findings This study reveals that firms audited by audit partners from the main ethnic group demonstrate lower audit fees, indicating a more extensive audit business network for this particular group of auditors compared to those from minority ethnic groups. Particularly, the study finds that firms audited by audit partners from the three largest ethnicities, namely, Balinese, Javanese and West Sumatranese, are associated with lower audit fees compared to others. These findings further contribute to the existing narrative and literature that highlight the ethnic background of audit partners as a form of social capital that influences lower audit fees. Research limitations/implications This study provides valuable practical and academic implications regarding the impact of audit partner ethnicity on audit fees. The findings highlight the importance for audit firms to strive for a balanced representation of ethnic diversity in their auditor characteristics, as it can positively influence both governance and marketing strategies. By recognizing and addressing the significance of ethnic diversity among audit partners, firms can enhance their overall effectiveness and success in the auditing profession. Originality/value This study makes a unique contribution by providing empirical data on audit pricing theory in Indonesia, specifically focusing on the role of ethnic diversity as a determinant of audit pricing. Previous research has not extensively explored the connection between auditor ethnicity and audit fees, particularly in relation to the business network as a channel mechanism. The theoretical explanations for the fee differentials have also been limited in prior studies. The current study addresses this gap by offering a theoretical basis that highlights the advantage of the dominant ethnic group in establishing an efficient audit market system. Consequently, these auditors are able to charge lower fees to clients without compromising on the quality of their services. This finding aligns with the existing literature on audit fees and underscores the importance of the main ethnic group in fostering an effective audit market, resulting in lower audit fees compared to mixed audit markets.

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The impacts of tenure diversity on boardroom and corporate carbon emission performance: Exploring from the moderating role of corporate innovation

Cited by 20 publications

References 69 publications

The School-ties Between Top Management Executive and Audit Partner: Exploring From Earnings Management in Indonesia

The School-ties Between Top Management Executive and Audit Partner: Exploring From Earnings Management in Indonesia

Emission targeting and carbon emissions: The moderating effect of female directors

Does auditor ethnicity matter in determining audit fees? Some empirical evidence from Indonesia

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