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Corporate governance has been raised as one of the most important issues among the international business environment since the beginning of the twenty-first century. At first, corporate governance basic principles focused on firm’s strategies and the rights of their shareholders but these principles has been changed into the rights of all stakehol...
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... weighted least squares method (WLS) and White test were used to remove heteroscedasticity. Table 3 shows the results of second hypothesis estimation. The results of testing this hypothesis suggests that there is a positive and significant relationship between institutional ownership (INSOWN), the independence of the board (BRDIND), CEO duality (DUAL) and board's tenure (TENURE) with stock return, so that increasing these variables increases companies' performance (based on capital market's return). ...Similar publications
When capital market participants have more information about the firm and its financial circumstances, they must be more capable of detecting earnings management .Therefore, managers will have less motivation to manage earnings. This paper empirically tests the impact of capital market knowledge on the level of earnings management. The results show...
Aim of this study is studying relation of management earnings forecast error and information content of accruals. Thus, the sample consists of 71 companies were selected for the period 2003-2011. In this study discretionary accruals is used as independent variables. The results suggest that there is a significant negative relationship between earni...
Reported earnings and earnings management are among analysts' critical financial information and variables as prominent factors in reviews and judgments. The present study has investigated the effect of earnings management on the cost of capital of companies listed on the Tehran Stock Exchange on a case-by-case basis in the pharmaceutical, petroche...
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Citations
... The aim was to clarify the legal nature of this process and identify any potential problems that may arise. The ultimate goal was to produce specialized and accurate research in this field (Kohansal et al., 2017). ...
The article analyzes the importance of defining the process of discounting commercial papers and its legal nature in Jordanian legislation and the comparative French and Egyptian legislation. This will be done by discussing the provisions contained in the aforementioned laws and the relevant judicial rulings and their adequacy in clarifying the nature of this process and its legal adaptation in light of the absence of adequate legal regulation in the Jordanian Trade Law. The study required relying on the analytical approach to analyze the legal texts, they contained to determine their effectiveness and shortcomings in discounting commercial papers and their role in providing legal protection for them. It also concluded with a set of results and recommendations, the most prominent of which is the process of discounting commercial papers, which is banking and has its own legal system, which is usually subject to the provisions of banking custom and the provisions of general rules. The Jordanian legislator did not adequately address the issue of discounting commercial papers and did not organize it in a comprehensive legal manner. This contradicts the position of the comparative legislation mentioned in this study, which included this process in its relevant laws.
... He also asserted that discussing essential issues in large-scale BODs will be less honest. Therefore, it reduces the effectiveness of BOD's supervision, leading to the weakness of the company's information disclosure system [64,65]. also find a negative impact of BOD size on FIT. ...
... Studies by Refs. [64][65][66] all confirm this [64]. asserts that BOD independence positively affects FIT through earnings management behaviour. ...
... Studies by Refs. [64][65][66] all confirm this [64]. asserts that BOD independence positively affects FIT through earnings management behaviour. ...
This study aims to evaluate the impact of factors representing the Board of Directors (BOD) and Audit Committee (AC) on financial information transparency (FIT) in a frontier market. FIT is measured through three indicators that reflect financial non-transparency: earnings aggressiveness (EA), earnings smoothing (ES) and loss avoidance (LA). Research data was collected from 338 companies listed on the Vietnam Stock Exchange (HOSE and HNX) from 2012 to 2022. The study uses the panel data analysis method through OLS, FEM, REM regression steps and necessary tests to select the appropriate analysis model. At the same time, model defects are handled by GLS and Robust regression. Our findings show that the factor representing BOD tends to increase the transparency of financial information, while the factor representing AC tends to decrease the transparency of financial information. This is the first study to examine the impact of composite factors representing BOD and AC and their component factors on FIT.
... حجم األصغر الشركات أن ً حجم األكبر الشركات عن األرباح غموض زيادة إلى تميل ا ا ؛ وذلك على للحفاظ أرباحها غموض الستخدام ًا جهود تبذل األصغر الشركات ألن عدم من يقلل مما الشركات هذه تماثل المعلومات، عن اإلفصاح وأن أصحاب يحتاجها التي الطوعية المعلومات من المزيد المصالح سليمة قرارات واتخاذ الشركة أداء لتقييم إلى يؤدي المعلومات بيئة تحسين المالية التقارير غموض مستوي وتخفيض . ماسبق ضوء وفي المالية؛ التقارير وشفافية الملكية هيكل بين الطردية العالقة علي الدراسات من العديد أكدت أنه يتضح أكد كما ، الشفافية تعزيز في ًا مهم ا دورً المليكة تركز وتلعب التنفيذين، المديرين كبار لمراقبة فعالة أداه الملكية هيكل يعتبر حيث ت الم الملكية دور علي الدراسات تلك المؤسسات من المستثمرون به يقوم الذي الرقابي الدور خالل من الشفافية تعزيز في ؤسسية األقلية المساهمين مصالح وحماية اإلدارة إجراءات بمراقبة(Mohammed et al.,2022;Liu et al., 2018;Kohansal et al., 2017; Zuhrohtun&Baridwan, 2015;Boubaker et al., 2015) األسهمأسعار انهيار وخطر المالية التقارير غموض بين طردية عالقة وجود الصلة ذات األدبيات وثقت المالية التقارير غموض مستوى زيادة ر تطورً األقل المالية النظم ذات الدول فى ضعيفة شركات حوكمة بيئات وذات ا معدل علي للمستثمرين منخفضة حماية توفر والتي الشركات أسهم أسعار انهيار خطر حدوث تكرار علي بالتطبيق وذلك 40 إلى وتوصلت العالم. حول دولة الت الدول أن ي فيها تكون ً غموض أكثر الشركات خ ارتفاع بها يزداد للمستثمرين بالنسبة ا أسعار انهيار طر األ سهم . ...
... التقارير وغموض الملكية هيكل بين المباشرة العالقة : ) يتم سبق ما على وبناء الفرض قبول األول القائل المالية التقارير غموض على الملكية لهيكل معنوى تأثير بوجود . وتتفق مثل السابقة الدراسات نتائج مع الدراسة تلك نتائج(Mohammed et al.,2022;Liu et al., 2018;Kohansal et al., 2017; Zuhrohtun&Baridwan, 2015;Boubaker et al., 2015;Munisi, 2023) النتيجة تلك وراء السبب ويرجع . باإلفصاح مرتبط الملكية هيكل أن إلي المعلومات عن والملكية المليكة، تركز وتلعب التنفيذين، المديرين كبار لمراقبة فعالة أداه ويعتبر اإلدارة إجراءات بمراقبة المؤسسات من المستثمرون به يقوم الذي الرقابي الدور خالل من الشفافية تعزيز في ًا مهم ا دورً المؤسسية األقلية. ...
... Al-Khonain and Al-Adeem (2020) found that corporate governance improves reporting quality. However, Kohansal et al. (2017) showed a negative and significant correlation between the board of directors size and management duality with reporting transparency. This mixed outcome requires further study to ensure the effect of corporate governance on transparency. ...
... H1: There is a significant impact of corporate governance on corporate transparency Torea, Fejioo and Gonzalez (2016) found that no impact is created by independent directors on corporate transparency whereas Kohansal, Rostami and Rostami (2017) revealed that financial transparency is positively influenced by independent directors. Thus following hypothesis is traced. ...
... Zaheer (2013) examined the larger and smaller boards and found that larger boards have a positive effect on transparency comparatively. But Durnev and Kim (2005) information transparency is negatively impacted by board size whereas Kohansal et al. (2017) also showed that financial reporting transparency is impacted by board size. Thus it can be developed following hypothesis to be tested. ...
The main purpose of the research is to explore the impact of corporate governance on the corporate transparency of public listed companies in Sri Lanka. The content analysis was applied to measure the dependent variable, corporate transparency while independent directors, board size, female directors, dual leadership, cross directorship, audit firm size, related party transaction review committee and remuneration committee were used as the variables of corporate governance. This research study covers 100 public listed companies which have been listed on Colombo Stock Exchange in Sri Lanka representing eight sectors and secondary data were gathered from annual reports published on Colombo Stock Exchange for the period from 2018 to 2020. The data analysis was performed through correlation and regression analysis using EViews software. As per the results of regression analysis, it was shown that there is a significant impact of audit firm size and female directorship on corporate transparency. Distinct from the previous empirical research, corporate transparency was measured using a newly updated transparency and disclosure index based on the most recent corporate governance codes in 2017. The outcome of the study gives an insight into corporate governance and corporate transparency to regulators, policymakers, practitioners, researchers and investors by adding value to the existing literature.
... Research has also examined the effect of corporate governance characteristics on financial reporting transparency. For instance, Kohansal et al. (2017) showed a positive correlation between ownership centralisation, institutional ownership, independence of the board of directors, management tenure with financial reporting transparency and a negative and significant correlation between the board of directors' size and management duality with financial reporting transparency. Independence is useful in reducing conflicts at the governance level and helps increase transparency and disclosures (Mathuva et al., 2019). ...
... The findings are in line with the results of research by Felo (2010) and Kohansal et al. (2017), who also showed that there is a positive relationship between board independence and audit committee independence with financial reporting transparency and a negative and significant relationship between management duality with financial reporting transparency. These contrast to Kohansal et al.'s (2017) research findings, which showed a positive relationship between managerial ownership and institutional ownership with financial reporting transparency. ...
... The findings are in line with the results of research by Felo (2010) and Kohansal et al. (2017), who also showed that there is a positive relationship between board independence and audit committee independence with financial reporting transparency and a negative and significant relationship between management duality with financial reporting transparency. These contrast to Kohansal et al.'s (2017) research findings, which showed a positive relationship between managerial ownership and institutional ownership with financial reporting transparency. ...
Purpose
The present study aims to examine the relationship between corporate governance factors and financial reporting transparency pre and post of ISIS.
Design/methodology/approach
A multivariate regression model was used to test the hypotheses for this purpose. The research hypotheses were tested on a sample of 35 companies listed on the Iraqi Stock Exchange from 2012 to 2018 using a multivariate regression model based on panel data technique.
Findings
The results indicate a negative and significant correlation between the board independence, audit committee independence, management team stability and remuneration of the board of directors and financial reporting transparency. In contrast, there is a positive and significant correlation between the board expertise, audit committee expertise and managerial ownership, with financial reporting transparency. Moreover, ISIS has had a direct and significant impact on the correlation between the board of directors’ independence and remuneration with financial reporting transparency. The present study also tested research models using additional methods (such as feasible generalised least squares, ordinary least squares, random effects and T + 1) to obtain better results. The results of these different methods were entirely in line with the main results of the research.
Originality/value
The political and economic instability resulting from the entry of ISIS into Iraq has created severe problems for society’s economic, political, security and performance dimensions. Macroeconomic uncertainty driven by terrorist activities can negatively affect managers’ perceptions of firms’ future performance and result in poor judgments and estimations, significantly impacting business units' financial reporting transparency. Because no study has examined the relationship between corporate governance and financial reporting transparency on the Iraq stock exchange before and after the presence of ISIS, this study examines such a relationship. Although the economic and political situation in Iraq may not be identical to that in other nations, much of the experience in Iraq is anticipated to apply to other countries in the region.
... This is in line with Ahmed et al. (2002) who mentioned that profit-making companies tend to use greater accounting conservatism by measuring total assets as a representative of profits of magnitude. The company (Kohansal et al 2017, Beaver and Ryan 2005, Gassen et al. 2006 have unconditional conservatism to check financial reports. 3. Real Earning Management Roychowdhury (2006) and said that business transactions resulting from the actual operating performance of the company can be divided into 3 categories which are 1) cash flow from operation 2) discretionary expenses 3) production costs. ...
The research aimed to study the impact of mediating role of accounting conservatism on corporate governance characteristics and real earning management of Thai Listed Companies. The secondary data were collected from Thai listed companies in 2016 – 2018. The sample consisted of 702 data from 234 companies. Descriptive statistics and multiple regression analysis were implemented. According to the impact analysis between variations, the results showed that companies with corporate governance characteristics demonstrated positive relationship with unconditional real earning management with statistical level at statistical significance of 5%. The board leadership of the companies has positive relationship with unconditional real earning management at statistical significance of 5%. Real earning management with normal discretionary expense, abnormal discretionary expense and proxy variable on real management (REM) had positive relationship with unconditional real earning management at statistical significance of 5%. It was also used as a tool by the companies to manage the higher profits to show the performance that had a significant impact on unconditional real earning management which does not have any accrual criteria in the measurement of Thai listed companies.
... The underlying discipline based on the so-called ownership approach adopted by the main Anglo- Saxon setters and whose justification of the capitalisation of lease contract components is based on the transfer to the lessee of the majority of the risks and associated benefits of the leased asset, has left a wide margin of discretion to the statement editors. This allowed, as claimed by the Securities and Exchange Commission (SEC), a repeated and expressive use of instrumentalized qualifications, with the result of avoiding the capitalisation of the transaction and improving performance and leverage ratios, distorting the correct perception of stakeholders and reducing the information quality of the financial accounting in terms of faithfulness, accuracy and transparency (Kohansal, S., Rostami, S., & Rostami, Z., 2017). According to a study performed by IASB and FASB, it has led listed companies to account for an off-balance sheet about 76% of total operations worldwide, for a current value of approximately $ 2.16 trillion. ...
Lease accounting will never be the same again. The endorsement of IFRS 16 on November 2017 sets out new rules for the recognition and measurement of the lease. The new standard removes the lessee’s distinction between operating and financial lease and it will have a substantial impact for companies have previously kept a large proportion of their financing off balance sheets.Under IAS 17 companies have exploited a financial accounting loophole by structuring lease transactions as operating leases, favouring opportunistic behaviours by managers and distorting the investors’ perception of the disclosure. IFRS 16 removes the so-called bright lines companies used to avoid capitalisation of leases and turns any attempt to hide lease liabilities off the balance sheet into a futile exercise to improve transparency of information.The purpose of this research is to analyse the potential impact of the new accounting rules on key financial ratios of Italian listed companies using a refined constructive capitalisation method. The results of the study show that the reflection of the operating leases on the balance sheet shall cause a significant increase in the assets and liabilities and for this reason, there shall be a significant effect on the main debt, liquidity and profitability ratios.
Growth not compatible with the financial capacity of the business, uncontrolled growth, imbalance of resources, dependence on external funding, and financial risks may occur. That is the current situation of some securities companies, in the context of a volatile world economic context. Meanwhile, theoretical and empirical research on this special type of enterprise on the relationship between financial capacity and sustainable development is still limited, especially in countries with marginal stock markets, which are making emerging transformation efforts. The goal of the article is to clarify whether or not financial capacity has an impact on the sustainable development of securities companies. Data was collected by the authors from 78 securities companies, with 591 observations in the period from 2013 to 2022 operating on the Vietnam Stock Exchange. By using linear regression methods (OLS, FEM, REM, GLS regression models), the article has identified seven factors affecting the sustainable development of securities companies, those factors are 1) scale of total assets of securities companies; 2) self-financing coefficient; 3) financial leverage (debt ratio); 4) profitability of equity; 5) profitability of assets; 6) retained profits, and 7) financial safety ratio. With the experimental results obtained, the authors propose a number of solutions aimed at sustainable development for securities companies such as increasing equity capital, promoting debt capital mobilization, restructuring capital sources, and providing strengthened risk management capacity.
هدفت الدراسة إلى إختبار تأثير خصائص آليات الحوكمة الداخلية على شفافية الافصاح، وكذا تأثير توقيت إصدار التقارير المالية كمتغير معدل للعلاقة بين خصائص آليات الحوكمة الداخلية وشفافية الافصاح، على عينة مكونة من 53 شركة مدرجة بسوق المال السعودي بمجموع 159 مشاهدة، للفترة من 2019-2021، أظهرت النتائج وجود تأثير إيجابي معنوي لخصائص آليات الحوكمة الداخلية المتمثلة في (حجم وعدد اجتماعات مجلس الإدارة، استقلالية لجنة التدقيق)، و تأثير سلبي معنوي لعدد اجتماعات لجنة التدقيق على شفافية الافصاح ، وكذا عدم وجود تأثير لتوقيت إصدار التقارير المالية كمتغير معدل للعلاقة بين خصائص آليات الحوكمة الداخلية و شفافية الإفصاح، وأخيرا فقد أوصت الدراسة بضرورة تعزيز فعالية لجنة التدقيق بالتركيز على عنصر الخبرة المالية.
The dominating perspective grounded in agency theory predicts that independent boards are more effective in monitoring and thereby reducing earnings management, yet the extant empirical evidence is inconclusive. We nuance the relationship between board independence and earnings management by introducing two additional theories that explain independent directors’ role on the board: the theory of personal dependence and praxis theory. According to personal dependence theory, the influence of independent directors on earnings management is a function of their competitiveness in the labor market, whereas the praxis theory attributes directors’ influence to the influence of the dominant coalition. We focus on two dimensions of earnings management accrual and real activities management, and account for both direction and magnitude of directors’ influence. Through an empirical test on 148 Swedish corporations from 2017, our findings indicate that the presence of independent directors may not necessarily reduce earnings management. Instead, independent directors may be subject to multiple and sometimes conflicting task demands which differently influence both magnitude and direction of earnings management. Implications for our understanding of the role of independent directors and their influence on corporations are presented
