Working and Impact of Parliamentary Committees in the UK and Bangladesh: A Theoretical Analysis

Abstract

not available Dhaka University Law Journal, Vol. 32(2), 2021 P.175-198

Audit Committee Independence, Director Ownership, Audit Quality and Non-Performing Loans

“…Further, we explore the impact of external audit quality on NPLs. We find that external audit quality (AQ) has significant negative impact on the NPLs (see also Chowdhury 2012;Prakash et al 2021). It reveals that quality audit can reduce NPLs, identified as white collar crime in banking industry of Bangladesh (see also Ghosh et al 2020).…”

“…EXTERNAL AUDIT QUALITY AND NPLs Chowdhury (2012) argued that the existence of independent audit, compensation, nominating and governance committees increases the value of corporate governance, and, in turn, contributes to the performance of the business. Next, Prakash et al ( 2021) developed an audit index as a construct of governance practices to identify association between audit work and efficiency.…”

“…However, taking decision about the unwillingness to pay loans by the borrowers is complex due to the existence of social, psychological, and political issues in this tendency (Ghosh et al 2020). Hence, we demand for an appropriate governance and control framework, recommended in many literature (such as, Chowdhury 2012;Prakash et al 2021;Tarchouna et al 2021a), in controlling NPLs arising from unwillingness to pay, mostly classified as a white collar crime. Therefore, this paper explores the impact of audit committee independence, director ownership, CEO power, audit quality and bank size along with several bank-specific and macroeconomic control variables on the NPLs.…”

“…Therefore, this paper explores the impact of audit committee independence, director ownership, CEO power, audit quality and bank size along with several bank-specific and macroeconomic control variables on the NPLs. This paper assumes that NPLs, arising from unwillingness to pay, can be controlled by establishing internal and external independent control and supervisory mechanisms through audit committee independence and external audit quality (Chowdhury 2012;Tarchouna et al 2021a;Fiador & Sarpong-Kumankoma 2021). Next, ownership effect can reduce the conflict of interest between management and shareholder, encouraging directors to work more and take more care when taking risks (Fahlenbrach & Stulz 2011;Tarchouna et al 2021a).…”