Impact of Audit Committee Characteristics on Voluntary Disclosures: Evidence from Pakistan (original) (raw)
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The Impact of Audit Committee Characteristics on Corporate Voluntary Disclosure
Procedia - Social and Behavioral Sciences, 2014
The purpose of this study is to investigate the influence of audit committee characteristics on corporate voluntary disclosure of 146 Malaysian listed firms for the year 2009. Based on content analysis of disclosure, the empirical results of multiple regressions reveal that audit committee independence, size and multiple directorships of audit committee members are positively associated with corporate voluntary disclosure. Frequency of meetings and financial expertise of audit committee members are not significantly associated with corporate voluntary disclosure. The results offer evidence to policy makers, investors and accounting professionals on the extent to which audit committee characteristics associated with such committee effectiveness in monitoring corporate reporting processes.
Universal Journal of Accounting and Finance, 2022
This study examines the influence of audit committee characteristics on voluntary disclosure of non-financial firms considering the context of Amman stock exchange (ASE). As a result, a total number of 140 firms were annually considered as study samples between 2015 and 2019 making up to 4 years reports. To measure the impacts of audit committee on information of voluntary disclosure, a number of hypotheses were tested from selected firms listed in Jordan. On the test for hypotheses, a descriptive analysis was carried out followed by the model of multiple regressions. The outcome from the findings in this study however indicated a positive relationship between the factors of independent audit committee, the sizes, the multiple directorships of members of audit committee and the corporate voluntary disclosure. The rate at which meetings were held by financial expertise and members of audit committee was observed to be associated significantly with the corporate voluntary disclosure. The results further revealed a strong significance difference between investors in accounting sector and policy makers and the accuracy of monitoring the process of corporate reporting. The current research however projected foresight ideas to improve corporate governance of Jordan and other developing countries with the tendency of imposing reliable regulation bodies.
Audit Committee Attributes, Corporate Governance and Voluntary Disclosure: Evidence from Jordan
International Journal of Academic Research in Accounting, Finance and Management Sciences, 2020
This study examines the impact of audit committee attributes, corporate governance on voluntary disclosure of the non-financial firms listed on Amman stock exchange, the sample size consists of 72 listed firms covered the time period 2013-2016. Voluntary disclosure was measured using the relative disclosure index ratio. Multiple regression techniques were employed to test the study hypotheses, the results show that audit committee independence and audit committee meetings frequency have a significant positive impact on the level of voluntary disclosure, the results also revealed that independent board members and foreign ownership have a significant positive impact on the level of voluntary disclosure, however, family control exerts a negative significant impact on the level of voluntary disclosure. The findings of this study may have policy implications for the Jordanian corporate governance regulators as well as to regulators in the developing countries.
Audit Committee Characteristics and Voluntary Disclosure: Evidence from Malaysian Listed Firms
2017
Global economic crisis in 2008 has increased the focus on the role of audit committee in ensuring integrity and transparency in corporate reporting. Audit committee characteristics are crucial in determining the ability of audit committee in carrying out its responsibilities effectively. Hence, this study aims to investigate the contribution of audit committee characteristics; independence, accounting expertise, multiple directorship, size, and diligence to audit committee effectiveness over corporate voluntary disclosure by Malaysian listed firms.The study uses 146 firms listed on Bursa Malaysia for the year 2006.The empirical results have revealed that proportion of independent directors, and number of directors on audit committee is significantly associated with corporate voluntary disclosure, and hence enhances audit committee effectiveness.The study contributes to the understanding of the association between audit committee characteristics and such committee effectiveness in re...
International Journal of Managerial Studies and Research
This study intends to investigate the relationship between corporate governance and disclosure quality. The study uses disclosure index to find out the firm's disclosure quality. For this purpose a sample of eighty firms listed on Karachi Stock Exchange (KSE) for the period of ten years i.e. 2005 to 2014 has been considered. Corporate governance variables tested for this study are the audit committee independence, board size, board independence, CEO duality, family ownership, institutional ownership. To measure the disclosure quality of the individual firms, the study has used the index score and it is checked against the information disclosed in the annual reports. Panel data estimation models have been employed for the purpose of analysis. The results reveal that better disclosure quality of the annual reports in non-financial sector can be achieved by having higher proportion of independent non-executive directors, separate board leadership structure, larger board size, higher the institutional ownership and lower ownership by family members in case of Pakistan.
Universal Journal of Accounting and Finance, 2021
The objective of the present research is to examine the relationship between corporate governance and voluntary disclosure, and to determine how certain factors enhance governance practices and consequently increase voluntary disclosure. The study considers the content analysis of 22 Saudi listed companies from 2015 to 2019. A comprehensive index is developed, with a check-list covering 30 items to extract and measure corporate governance practices and levels of voluntary disclosure. The researchers use ordinary least squares (OLS) regression to examine whether corporate governance-specific mechanisms can explain any differences in voluntary disclosure levels among the listed companies. The results indicate a statistically significant relationship between the number of non-executive directors and board size and the level of voluntary disclosure. This study concluded that non-executive directors and board size are ranked the highest in terms of their positive effects on voluntary disclosure. The relationship between the independent directors and audit committees and voluntary disclosure is insignificant. The results suggest that the high number of non-executive directors and the increase in the number of directors on the boards lead to greater voluntary disclosure of information. This study helps regulators of corporate governance and company directors understand the factors affecting voluntary disclosure. Corporate governance regulators should require an increase in the minimum number of boards and non-executive directors for listed companies in order to gain the desired levels of voluntary disclosure and transparency. Saudi listed companies are advised to willingly increase their board members to the maximum number specified by regulation. This study has some limitations as participants represented a small sample; hence, the results cannot be generalised. Furthermore, the voluntary disclosure data were collected only from annual reports; sources such as websites, public announcements and press releases, were not taken into account, but would have provided many relevant details.
International Journal of Academic Research in Accounting, Finance and Management Sciences, 2018
Corporate governance has become common issues and the numbers of issues have increase gradually since the last two decades. Good corporate governance plays crucial part in developing better linkages in the organization which includes the vital role in the organization such as board members, managers, stakeholders and stockholders. Good practices of corporate governance not only can be seen in well-developed and business-oriented, but it also will promote organization events and enhance organization abilities in accessing all the sources. Besides, this practice will encourage organization in developing the values of business and systems controlled in facing any risk during the process of creating better organization. In achieving status of good status of corporate governance, a good organization should have good practices in the governance and disclosure also broad knowledge it is crucial elements for successful organization in the world. However, most of Arab Saudi listed companies have the foundation of good governance knowledge and this practice is one of the best elements for increasing and maintaining organization efficiency especially Index listed company. Nevertheless, previous studies on corporate governance always highlighted on controversial results on corporate governance impacts on the efficiency of company. However, this paper will be highlighted on factors that contribute corporate governance which include committees of board audit, the size of audit, independence, compensation and the frequency of meeting. On top of that, the result of this study will offer more suggestions for further research on the linkages between corporate governance and company also Saudi listed company disclosure in Saudi Arabia context. In aligned on the results, it will offer the implications on authority regulators, policymakers and shareholders with effective implication of best practices and information disclosure on corporate governance.
The Indonesian Journal of Accounting Research, 2015
Abstract: This study aims to examine the effect of the effectiveness of the board of commissioners, directors, audit committees and external audit (audit costs, the size of the Public Accounting Firm and the audit opinion) on the level of mandatory and voluntary disclosure. The study uses a sample of 142 non-financial public companies listed on the Indonesia Stock Exchange in 2011 and 2012. The result of the study concludes that the size of the public accounting firm has a significant negative effect on the level of mandatory disclosure, while the effectiveness of the board of commissioners and directors positively influence mandatory disclosure. The effectiveness of the directors and audit committee also positively influence the level of voluntary disclosure, whereas external audit does not influence the level of voluntary disclosure. Abstrak: Penelitian ini bertujuan untuk menguji pengaruh efektivitas dewan komisaris, direksi, komite audit dan audit eksternal (biaya audit, ukuran ...
European Journal of Business and Management Research
The aim of this study is report on the level of audit committee (AC) independence and different types of financial expertise and to empirically examine the effect of AC independence level and different types of AC financial expertise on corporate voluntary disclosure of Malaysian listed firms. Using multiple regression analysis on data drawn from annual reports of top 146 listed firms, the findings reveal that proportion of independent directors on audit committee, and totally independent audit committee members can lead to significantly a higher level of voluntary disclosure. Further, members with accounting expertise of AC are significantly associated with corporate voluntary disclosure. The findings of this study may be of interest to policy makers, regulators, shareholders and management as they could use them to understand and assess AC effectiveness and hence enhance the monitoring role of AC.
Determinants of Voluntary Disclosure in Annual Report: A Case Study of Pakistan
This study investigates the factors affecting voluntary disclosures in the annual reports of listed companies in Karachi stock exchange (KSE) of Pakistan. The degree of voluntary disclosure is calculated by an index which is based on financial, non-financial and strategic information. For exploring determinants of voluntary information latest data of 372 manufacturing companies of Pakistan in 2012 is collected. Most recommended cross sectional data analysis techniques multiple regression analysis was used in this study. In order to obtained robust results of regression analysis, diagnostic tests were applied. These tests check the assumptions of multi-collinearty and heteroskdasticity in regression analysis. The finding of this study shows that firm characteristics; profitability, firm size, age and auditor size have positive and significant relationship with voluntary disclosure while leverage has negative and significant relationship with voluntary disclosure. According to author’...