2021_Mediating Effects of Audit Committee Independence on The Relationship Between Firm Internal Governance, Financial Audit and Risk Management on Real Earnings Management
| Format: | General Document |
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| _version_ | 1860798043130953728 |
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| collection | Online Access |
| collectionurl | https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 |
| copyright | Copyright©PWB2025 |
| country | Malaysia |
| date | 2022-01-04 |
| format | General Document |
| id | 15610 |
| institution | UniSZA |
| internalnotes | Sila masukkan subject wajib Dissertations, Academic. Terima kasih... |
| originalfilename | 15610_4b17c31fd57b349.pdf |
| person | Ibrahim Garba |
| recordtype | oai_dc |
| resourceurl | https://intelek.unisza.edu.my/intelek/pages/view.php?ref=15610 |
| sourcemedia | Server storage Scanned document |
| spelling | 15610 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=15610 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 General Document Malaysia Library Staff (Top Management) Library Staff (Management) Library Staff (Support) Terengganu Faculty of Business and Management English application/pdf 1.5 324 Server storage Scanned document Universiti Sultan Zainal Abidin UniSZA Private Access Universiti Sultan Zainal Abidin SAMBox 2.3.4; modified using iTextSharp™ 5.5.10 ©2000-2016 iText Group NV (AGPL-version) Mediating effects Copyright©PWB2025 2022-01-04 15610_4b17c31fd57b349.pdf Ibrahim Garba Audit Committee Independence The Relationship Between Firm Internal Governance, Financial Audit And Risk Management On Real Earnings Management Audit committees – Independence Corporate governance – Internal controls Financial auditing – Corporate sector Risk management – Corporate finance Forensic accounting – Fraud detection 2021_Mediating Effects of Audit Committee Independence on The Relationship Between Firm Internal Governance, Financial Audit and Risk Management on Real Earnings Management Fraud cases and financial anomalies in Nigeria today are increasingly becoming strained. Corruptions and accounting misstatement could signal weaknesses in auditing, internal control, or even of the board of directors of companies. Thus, the Nigerian government is committed to improving the financial reporting quality of publicly listed companies to increase investors’ confidence and protect shareholders’ interests as well. The reporting practice in Nigeria is affected by lack of concerns of stakeholders’ needs, indiscipline, dishonesty, and employees’ misconduct. Various internal and external monitoring mechanisms have been introduced to align the managerial interest with that of the shareholders but these lingering issues continued to persist. Up till to date, research findings on fraud cases and financial anomalies are still not concluded and thus, there is need to examine the role of a mediator. Accordingly, this study examines the effects of three determinants namely – firm internal governance, financial audit, and risk management on financial reporting quality in Nigerian listed non-financial firms, mediated by the audit committee independence. A quantitative methodology was applied in this research using data sourced from Thomson Reuters DataStream and the annual financial reports for the period 2011-2017. In the first stage, cross-sectional regression analysis of Roychowdhury (2006) models was performed using the 469 firm-year observations. In the second stage, the panel data was analysed using the two-step Generalized Methods of Moments (GMM). Two key findings emerged from the data analyses. First, internal governance, financial audit, and risk management each has a significant positive effect on the effectiveness of financial reporting quality in the firms examined. Secondly, the results confirm that the mediating effect of the audit committee independence on the relationship between the three attributes and earnings manipulation in the Nigerian listed companies. Overall, the findings provide new insights into the three determining factors that could potentially improve the effectiveness of internal and external monitoring mechanisms to deter opportunistic behaviour. In addition, this study also offers several policies cum practical implications. The Nigerian reporting environment needs to improve the reporting attitude of listed companies and ensure the reporting of reliable and credible financial statements for the benefit of all stakeholders. The study also provides suggestions for further research in the area of earnings management and quality reporting. Dissertations, Academic Sila masukkan subject wajib Dissertations, Academic. Terima kasih... Thesis |
| spellingShingle | 2021_Mediating Effects of Audit Committee Independence on The Relationship Between Firm Internal Governance, Financial Audit and Risk Management on Real Earnings Management |
| state | Terengganu |
| subject | Audit committees – Independence Corporate governance – Internal controls Financial auditing – Corporate sector Risk management – Corporate finance Forensic accounting – Fraud detection Dissertations, Academic |
| summary | Fraud cases and financial anomalies in Nigeria today are increasingly becoming strained. Corruptions and accounting misstatement could signal weaknesses in auditing, internal control, or even of the board of directors of companies. Thus, the Nigerian government is committed to improving the financial reporting quality of publicly listed companies to increase investors’ confidence and protect shareholders’ interests as well. The reporting practice in Nigeria is affected by lack of concerns of stakeholders’ needs, indiscipline, dishonesty, and employees’ misconduct. Various internal and external monitoring mechanisms have been introduced to align the managerial interest with that of the shareholders but these lingering issues continued to persist. Up till to date, research findings on fraud cases and financial anomalies are still not concluded and thus, there is need to examine the role of a mediator. Accordingly, this study examines the effects of three determinants namely – firm internal governance, financial audit, and risk management on financial reporting quality in Nigerian listed non-financial firms, mediated by the audit committee independence. A quantitative methodology was applied in this research using data sourced from Thomson Reuters DataStream and the annual financial reports for the period 2011-2017. In the first stage, cross-sectional regression analysis of Roychowdhury (2006) models was performed using the 469 firm-year observations. In the second stage, the panel data was analysed using the two-step Generalized Methods of Moments (GMM). Two key findings emerged from the data analyses. First, internal governance, financial audit, and risk management each has a significant positive effect on the effectiveness of financial reporting quality in the firms examined. Secondly, the results confirm that the mediating effect of the audit committee independence on the relationship between the three attributes and earnings manipulation in the Nigerian listed companies. Overall, the findings provide new insights into the three determining factors that could potentially improve the effectiveness of internal and external monitoring mechanisms to deter opportunistic behaviour. In addition, this study also offers several policies cum practical implications. The Nigerian reporting environment needs to improve the reporting attitude of listed companies and ensure the reporting of reliable and credible financial statements for the benefit of all stakeholders. The study also provides suggestions for further research in the area of earnings management and quality reporting. |
| title | 2021_Mediating Effects of Audit Committee Independence on The Relationship Between Firm Internal Governance, Financial Audit and Risk Management on Real Earnings Management |
| title_full | 2021_Mediating Effects of Audit Committee Independence on The Relationship Between Firm Internal Governance, Financial Audit and Risk Management on Real Earnings Management |
| title_fullStr | 2021_Mediating Effects of Audit Committee Independence on The Relationship Between Firm Internal Governance, Financial Audit and Risk Management on Real Earnings Management |
| title_full_unstemmed | 2021_Mediating Effects of Audit Committee Independence on The Relationship Between Firm Internal Governance, Financial Audit and Risk Management on Real Earnings Management |
| title_short | 2021_Mediating Effects of Audit Committee Independence on The Relationship Between Firm Internal Governance, Financial Audit and Risk Management on Real Earnings Management |
| title_sort | 2021_mediating effects of audit committee independence on the relationship between firm internal governance, financial audit and risk management on real earnings management |