International Journal of Disclosure and Governance最新文献

The main purpose of this paper is to examine the interaction effect of senior management support (SMS) on the factors affecting internal audit (IA) function effectiveness. Data were collected from 207 chief audit executives working in the Gulf Cooperation Council (GCC) countries using a quantitative survey method. The data were analyzed using partial least squares-structural equation modeling approach (PLS-SEM). In addition, a simple slope plots test was used to explore the moderating effect. The results show that SMS has a mixed moderating effect on IA effectiveness. The interaction effect of SMS is positive and significant with IA independence, IA staff competence, and adopting a risk-based audit approach, whereas the effect is negative and significant with the relationship between IA and audit committee, adopting a quality assurance and improvement program, and the role of IA in leading combined assurance implementation. The results also show that there is no moderation effect with IA size and cooperation between IA and external auditor. The paper provides IA practitioners, audit committees, and senior management in organizations with a broad understanding of the role played by senior management in supporting the IA effectiveness and the key factors that should be considered to make their IA functions more effective. Also, it provides an opportunity for policymakers and regulators to enhance the corporate governance legislations by considering the important factors that drive the effectiveness of IA function and senior management role in supporting the IA function.

Risk disclosures are crucial for a robust corporate governance framework. It permits shareholders to assess the financial health of banks by understanding various risks (credit, market, operational, etc.). This study investigated the impact of audit committee characteristics such as the size, meetings, and expertise of audit committee members on risk disclosures. For this purpose, we collected data from 20 commercial banks over 17 years, from 2006 to 2022, listed on the Pakistan Stock Exchange. We employed panel data analysis by incorporating both period- and firm-fixed effects, providing a clearer picture of risk disclosure across periods and cross sections. We find a positive and significant impact of the expertise of the audit committee members on the levels of transparency and adequacy of risk disclosure. However, the study also reveals that risk disclosure tends to decrease with increased audit committee size. The study also finds that the Bank of Punjab has the highest risk disclosure, while Habib Bank has the lowest disclosure. Additionally, the period effects show that banks disclosed the highest level of risk in 2020, whereas in 2007, banks provided the least risk disclosure. This study enhances the level of risk disclosure in the banking sector of Pakistan. It also reduces information asymmetry between management and shareholders by strengthening the audit committee and explaining changes across risk disclosure. The findings of this study are helpful for bank BODs in formulating and appointing effective audit committee boards in line with the factors that have been shown to impact risk disclosure significantly. Other sectors can also improve risk disclosure practices by enhancing audit committee expertise and managing committee size, leading to better transparency and stakeholder trust.

The influence of information asymmetry (IA) on the cost of equity capital (COEC) is a critical aspect of managing corporate capital markets. This study delves into the correlation between IA and COEC through an analysis of 24 pairs of proxies. We investigate how six corporate finance signals impact the positive correlation and the consequences of disregarding each signal in establishing this positive link. The results reveal that different corporate finance signals, including dividends, debt ratio, capital expenditure, institutional ownership, ownership concentration, seasoned equity offerings (SEO), and capitalization of retained earnings (CRE), have unique effects on the relationship between the 24 pairs of IA-COEC proxies.

This empirical study investigates the influence of ownership structure and board characteristics on firm performance in emerging market economies, with a focus on Bangladesh. By using data from DSE30 listed firms on the Dhaka Stock Exchange and applying accounting and market performance measures including return on assets, return on equity, market-to-book, and Tobin’s Q, the study provides comprehensive insights. The research employs industry fixed effects panel analysis, two-stage least squares (2SLS), and lagged variables to explore these relationships through the lens of agency theory. The results reveal that ownership structures and board characteristics have a mixed impact on firm performance. ROA is positively associated with foreign ownership, sponsor ownership, and board independence but negatively associated with institutional ownership, government ownership, and family firms. ROE is positively influenced by gender diversity and board expertise, whereas government ownership, board size, and family firm ownership have a negative impact. Similarly, Tobin’s Q is positively significant in relation to board size, board independence, gender diversity, and board expertise, while ownership structure shows a negative significance. Our results also confirm that government ownership and family firms negatively impact performance metrics. The primary implication for stakeholders is to contemplate both dimensions of firm performance when making investment and financing decisions.

This study used the board of directors, risk management committee (RMC), audit committee (AC) and Shari’a supervisory board (SSB) attributes and constructed a comprehensive corporate governance (CG) quality index and sub-indices to explore their influence on Islamic bank risk-taking. It used unbalanced panel data manually collected over 12 years (2010–2021) generated from the annual reports of a sample of 43 fully Shari'a-compliant Islamic banks operating in 15 different countries. Using the two-step system GMM estimator as a major regression, the findings indicate a significant positive relationship between the CG quality index and credit risk. Concerning sub-indices, board and AC quality sub-indices have a significant negative and positive association with credit risk. However, RMC and SSB quality sub-indices have an insignificant association with risk. The findings were substantially similar when we used portfolio risk as an alternative measure of risk-taking and FGLS and OLS robust regression as alternative regression models. Consequently, the study recommends the need for relevant regulators to review the CG codes related to the board and these committees, as well as credit and risk management policies, to rejuvenate the effectiveness of RMC, AC, SSB and the overall CG practices in enhancing Islamic bank stability.

The aim of this study was to investigate the impact of corporate governance on the internationalisation of African firms from the perspective of institutional investors. While African firms have significantly expanded their international operations over the past two decades, international business literature has not given the related corporate governance aspects enough attention. In particular, the complex interaction between firm-level corporate governance mechanisms and country-level corporate governance systems has considerable implications for the value creation of internationalisation strategies. To address this research gap, semi-structured interviews were conducted with 24 senior decision-makers of institutional investors operating in South Africa, Botswana, Zambia, Mauritius, Ghana, and Nigeria to gain an unprecedented view of the internationalisation of African firms. Based on the findings of the thematic analysis, this study developed a theoretical framework of high practical relevance that combines the concepts of corporate governance and internationalisation in the dynamic and diverse African context. The study further provides novel insights into the cultural dimension of corporate governance by demonstrating that the outcome of corporate governance practices depends on cultural norms and values across a multinational firm’s international operations.

The demise of prominent cooperatives around the world raises questions about the viability of cooperative governance. One important aspect rarely discussed in the field of cooperative governance is the role of member activism. This study investigates whether member activism can influence cooperative performance through good cooperative governance as a mechanism. Using a newly developed member activism measure derived from mutual incentive theory and the dynamic capability theory, along with a cooperative performance measure that incorporates both financial and non-financial aspects, the results suggest that member activism enhances the governance and performance of cooperatives. The study also finds that member activism is a factor that can improve governance, subsequently leading to better cooperative performance. The impact of this study is relevant to regulatory bodies such as the Cooperative Commission of Malaysia, as well as to cooperatives’ boards and management, highlighting the importance of improving member activism to ensure better accountability to stakeholders.

This paper aims to analyse the quality of green accounting disclosure and provide insight into the perceptions of corporate insiders and academics about the challenges that impede green accounting information disclosures in an emerging economy, India. Content analysis was used to evaluate the degree of disclosure of green accounting data in yearly reports. Ten prominent managers and academics (subject experts) participated in partially structured interviews that aided in interpreting the difficulties associated with disclosing green accounting data. The results suggest that green accounting data disclosure is in its early stages in India. Companies focus more on disclosing environmental policies and responsibilities while ignoring environmental financial information. The significant challenges that obstruct the growth of green accounting statistics and data divulgence include the following: the absence of precise legal requirements about green accounting, inadequate green accounting and reporting theory, lack of knowledge, shortage of environmental accountants, unclear and conflicting job roles, cost concerns of the companies, deficiency of government-funded incentives and robust non-governmental organisations, and the fear of change. The research should be valuable for regulatory authorities because green accounting standards are currently developing, and it can aid company executives due to the cautious deliberation of revelations. This study employs a multidimensional index to assess the green accounting disclosure practices of top-ranking firms in the manufacturing division dealing in industrial equipment from both a quantitative and qualitative standpoint in the institutional theory framework. It documents how the challenges of green accounting disclosure may lead to explicative strategies by various actors, thereby contributing to shaping green accounting information disclosure norms.

This study aims to identify current topics in the corporate governance literature by conducting a bibliometric review of corporate governance bibliometric reviews published in the Scopus database. It applies different bibliometric analyses, including keyword cartography, authors’ citations, countries’ citations, organizations’ citations, documents’ citations, references’ citations, and journal citations. In addition, it applies evolution and content analyses. It reviewed 87 bibliometric reviews of corporate governance published in Scopus. VOSviewer was used as software for conducting bibliometric analysis, whereas author used CiteSpace and WordStat software for evolution and content analyses. The results identified four major clusters: (1) private equity, (2) corporate social responsibility, (3) gender diversity, and (4) sustainability. In addition, the results reveal that journals on Corporate Social Responsibility and Environmental Management, Management Review Quarterly, and Meditari Accountancy Research contribute to bibliometric reviews of corporate governance in terms of number of papers and citations. This study provides recommendations for future research in this area. This study has implications for bibliometric reviews of corporate governance topics such as corporate governance in specific legal and industrial contexts, ownership structure, attributes of the board of directors, and different financial decisions. This is the first study to review bibliometric analyses of corporate governance topics. These results will be useful in future bibliometric reviews of corporate governance. This study presents an overview of the bibliometric review development of corporate governance and a summary of the most productive authors, organizations, journal sources, and references. It also provides potential research opportunities for future bibliometric reviews of corporate governance topics.

This study investigates how the COVID-19 pandemic, as measured by its morbidity and mortality, impacts the audit of companies, specifically how auditors make going-concern opinion (GCO) decisions. The pandemic created the conditions of a natural experiment, making it possible to disentangle the economic and psychological effects of COVID-19 on the auditors’ GCO decisions. Additionally, the lockdowns amplified the difference in the information sets of local and non-local auditors, thus making it possible to evaluate the information advantage due to geographic proximity. This study further tests the effects of geographic proximity on the accuracy of auditors’ GCOs during the pandemic by comparing them with clients’ subsequent bankruptcy filings. The results of this study show that both COVID-19 morbidity and mortality rates increase the likelihood of auditors’ GCOs, which can be explained from economic and psychological perspectives. The geographic proximity between audit offices and client headquarters mitigates the influence of COVID-19 morbidity information; however, it does not mitigate the psychological effects of COVID-19 mortality information. The results also indicate that local auditors can make more accurate GCO decisions due to their information advantage.