Purpose
The purpose of this paper is to analyse the influence of audit committee characteristics and external audit quality on the performance of non-financial public limited companies listed on the ...National Stock Exchange 100.
Design/methodology/approach
One-way random effect panel data regression was applied to 74 non-financial firms in the Nifty 100 from 2014 until 2019. The overall audit committee index and external audit index were built based on the new Indian Companies Act, 2013 and on a review of the literature to capture the impact of the new Act on firm financial performance.
Findings
The outcome of the study revealed that there is lack of evidence to show that audit committee characteristics improve the performance of top Indian non-financial listed firms. However, external audit quality was found to have a significant positive impact on the financial performance of firms as measured by Tobin’s Q, while firm size and leverage were found to have a significant impact on the financial performance of firms as measured by return on assets and return on equity.
Practical implications
This paper will be greatly beneficial for financial practitioners and policymakers because it provides practical suggestions and recommendations about the types of external audit that are indispensable for the overall effectiveness and performance of firms. The study findings may also aid strategic policy formulation and execution for better corporate governance practices for the purpose of profit and wealth maximisation.
Originality/value
To the best of the authors’ knowledge, to date, no previous research has evaluated the effects of audit committee features and external audit quality on the financial performance of firms in India after the implementation of the new Companies Act, 2013. Hence, this study fills this void in the present literature by examining the overall features of the audit committee and external audit and their impact on firm performance in the setting of India.
This research is motivated by the application of countercyclical policy, such as credit restructuring, by banking companies during the COVID-19 pandemic. The credit restructuring that the banks ...carried out had the potential to affect their financial performance and increase the tendency of financial statement manipulations. The purpose of this study is to review the significance of the changes in banks’ financial performance before and after the implementation of the credit restructuring, as well as its relationship to the potential for fraudulent financial statements. The population in this study was the financial sector companies listed on the Indonesia Stock Exchange in 2020, a total of 105 companies. The 96 samples consisted of 32 banking companies in the commercial banking category that have implemented countercyclical policies in the form of credit restructuring during the COVID-19 pandemic. The research method was a quantitative method using secondary data obtained from the official website of the Indonesia Stock Exchange and the official websites of the related companies. The results showed no significant change in the banks’ financial performance. Although the credit restructuring had an impact, such as a decrease in their profits, it did not encourage them to manipulate their financial statements.
For the proper functioning of the capital markets it is essential to provide users faithful and relevant information, about the company financial position, its performance, and cash-flows, which to ...be available in time for the decision-making process. In order to increase the transparency of the financial information communicated by the companies traded on a regulated market, the European Union (EU) gave digitalization a special position by requiring the use of a single electronic format for the annual financial reports prepared for years beginning on or after 1 January 2020. The European Single Electronic Format (ESEF), which draft Regulatory Technical Standards (RTS) were prepared by the European Securities and Markets Authority (ESMA), implies that issuers prepare their entire annual financial reports in eXtensible Hypertext Markup Language (XHTML) format and use eXtensible Business Reporting Language (XBRL) for the consolidated financial statements prepared under International Financial Reporting Standards (IFRS). It is well known that digital technologies facilitate the process of collecting, preparing, analyzing, and interpreting information, and in this study the authors concentrate on the extent which the Romanian companies traded on Bucharest Stock Exchange (BSE), Regulated Market, introduced the new digital technologies in the reporting process, on a mandatory or a voluntary base, trying to capture specific aspects of the auditor’s reporting on the new statutory requirements in the context of ESEF implementation.
In this study, the concept of the expectation gap (AEG), which is thought to be at the center of the criticism towards the audit profession, is discussed. The AEG can be explained as the difference ...between the performances and expectations of the parties to the audit. The aim of the study is to examine the current status and global trends of AEG scientific publications in Scopus and Web of Science (WOS) databases with bibliometric analysis. For this purpose, in the search conducted with the keyword "Audit Expectation Gap" in both databases, 117 publications covering the years 1992-2024 were evaluated comparatively. The data were analysed by using Excel and VOS viewer programs. The findings show that approximately 40 per cent of AEG research has been conducted in the last five years. The leading countries are the United Kingdom, Australia, Malaysia and Iran. The most productive authors are Humphrey, C., Coram, P. J. and Lee, T.H. The common keywords that stand out are auditing, auditors, auditor's report, key audit matters and audit quality. The overlap rate of the databases is 35% and the coverage of Scopus was found to be wider. To the best of the author's knowledge, this is the first study to evaluate the effects/interactions of AEG research in terms of both databases.
To deter financial misstatements, many companies have recently adopted compensation recovery policies—commonly known as "clawbacks"—that authorize the board to recoup compensation paid to executives ...based on misstated financial reports. Clawbacks have been shown to reduce financial misstatements and increase investors' confidence on earnings information. We show that the benefits come with an unintended consequence of certain firms substituting for accruals management with real transactions management (e.g., reduce research and development R&D expenditures), especially firms with strong incentives to achieve short-term earnings targets, such as firms with high growth or high transient institutional ownership. As such, the total amount of earnings management does not decrease subsequent to clawback adoption. We further show that although real transactions management temporarily boosts those clawback adopters' short-term profitability and stock performance, this trend reverses after three years. In summary, clawbacks may have unexpected effects for a subset of firms whose managers are under greater pressure to meet earnings goals.
The article examines financial hardship (FH) that appears as one of the essential socio-economic-financial categories reflecting a financial burden on society and therefore having a significant ...impact on the social and economic development of the country. The purpose of this article is to propose and approve a methodology for the complex quantitative assessment of financial difficulty, which allows comparing countries one another. The novelty of the conducted research is manifested by the formed financial hardship adequately exposing a system of indicators and suggesting the transformation of incomparable indicators into the comparable ones. The paper proposes a methodology for the integrated assessment of financial hardship based on multi-criteria methods, which contributes to solving the problems of the social sustainability and economic development of the countries employing different research methods. The proposed methodology provides a possibility of moving to a higher level of research comparing the countries as a whole, in line to the current status of FH. The actual benefits of the carried out research arise from the opportunity to envisage targeted measures for increasing social sustainability subject to the specific situation of the financial hardship of the countries thus removing the burdens of further economic development.
This study examines the investigation of accounting factors through audited financial statements in businesses by analyzing the qualified staff and investment in technology for sustainable profit. ...Therefore, the main goal is to analyze whether qualified staff and investment in technology affect the sustainability of profit in businesses through the investigation of accounting factors in the audited financial statements toward a circular economy, more specifically in these financial items: total assets (TASS), and intangible assets (IASS), total liabilities (TLIA), total income (TREV), and net financial income (NFI), based on questions about which financial items businesses should take care of, as well as businesses that do not invest in technologies and skilled staff: does this hinder profit sustainability? Therefore, for this study, data are collected from the financial statements (balance sheet and income statement) of (N = 800) businesses according to their activity (manufacturing businesses = 256, service businesses = 192, and distribution businesses = 353) during the period (2020-2022). The results show that each of the variables and factors had a significant impact on sustainable profit through the circular economy in (N = 800) businesses. However, to have a sustainable profit in business, it is strongly recommended to pay attention to these findings: businesses should (a) be careful with total liabilities, (b) increase the performance of total assets, (c) increase the performance of net financial income, (d) increase the performance of total business income, and (e) increase and develop the skills of workers, as well as improve technology (equipment, machinery, etc.). With implications and limitations, it was difficult to access some of the financial statements; there are only a limited number of variables, so the same models can be analyzed for other businesses, variables, and countries.
Embodied Neoliberalism Sweet, Elizabeth; DuBois, L. Zachary; Stanley, Flavia
International journal of health services,
07/2018, Letnik:
48, Številka:
3
Journal Article
Recenzirano
A growing set of epidemiological data links personal financial debt to negative mental and physical health outcomes. These findings point to debt as a potentially significant socioeconomic ...determinant of population health, especially given rising rates of household and consumer debt in industrialized nations. However, the political and economic contexts in which rising consumer debt is embedded and the ways in which it is experienced in everyday life are underexplored in this epidemiological literature. This gap leaves open questions about how best to situate and understand debt as a health determinant with both psychosocial and neo-material attributes. In this article, we discuss findings from a qualitative study of personal debt experience in Boston, Massachusetts. Participants’debt narratives highlight the powerful feelings of shame, guilt, and personal responsibility that debt engenders. The findings point to the influence of neoliberal ideology in shaping emotional responses to debt and suggest that these responses may be important pathways through which debt affects health. We discuss our findings within the broader landscape of American neoliberal economic policy and its role in shaping trends of consumer debt burden.
PurposeThis paper aims to explore how innovation capability and market response capability of small and medium-size enterprises (SMEs) affect their supply chain financing performance (SCFP) through ...supply chain financing solutions (SCFS) adoption. At the same time, the mechanism by which supply chain financing reduces information asymmetry before (ex-ante) and after (ex-post) SCFS adoption to promote SCFP is also inquired.Design/methodology/approachDrawing on enterprise competence theory, this paper proposes a theoretical model and tests it using survey data from a sample of 218 SMEs in China. Multiple regression analysis is employed to test the hypothesis.FindingsThe study finds that: (1) SMEs' innovation capability and market response capability positively affect SCFP. (2) SMEs' innovation capability and market response capability exert significantly positive effects on SCFS adoption. (3) SCFS adoption plays a mediating role between SME capabilities and SCFP. (4) Supply chain integration (SCI) and information technology application have no moderating effects on the relationship between SME capabilities and SCFS adoption. Finally, (5) SCI and information technology application have positive moderating effects on the relationship between SCFS adoption and SCFP.Originality/valueBased on enterprise competence theory, this study sheds light on the internal mechanism through which SMEs' capabilities affect SCFP by introducing SCFS adoption and explores the role of situational factors in SCF in reducing ex-ante and ex-post information asymmetry. This study provides an innovative theoretical perspective on supply chain financing and enriches the existing research.
