Template-Type: ReDIF-Article 1.0 Author-Name: Sophie Brière Author-X-Name-First: Sophie Author-X-Name-Last: Brière Author-Name: Natalie Rinfret Author-X-Name-First: Natalie Author-X-Name-Last: Rinfret Author-Name: Hélène Lee-Gosselin Author-X-Name-First: Hélène Author-X-Name-Last: Lee-Gosselin Author-Name: Maude Villeneuve Author-X-Name-First: Maude Author-X-Name-Last: Villeneuve Title: Impact of the presence of women on public sector and private corporations in Quebec: what may be learned from the multiple discourses of board members? Abstract: This study presents a qualitative research conducted with boards of directors in large organisations from various sectors of the Quebec economy. From a critical perspective, this research documents element related to the perceived impact of the presence of women on boards through the members discourse and the boards practices. The results show that the two types of discourse mentioned in the literature - competence and individual gendered - are present among board members. The results reveal the presence of a discourse on diversity distinct from the other two. Perceived as a catalyst for change, that discourse attaches importance to the significant impact of mixing men and women. However, in the respondents diversity discourse, few tangible changes in gender dynamic within boards are observed. This study highlights the relevance of examining the presence and impact of women on boards from a new angle with a perspective that goes beyond statistical data and multiple discourses. Journal: Int. J. of Corporate Governance Pages: 1-22 Issue: 1 Volume: 9 Year: 2018 Keywords: boards of directors; women; organisations; Québec; impact; diversity; discourse; gender; changes. File-URL: http://www.inderscience.com/link.php?id=90609 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:9:y:2018:i:1:p:1-22 Template-Type: ReDIF-Article 1.0 Author-Name: Aymen Mselmi Author-X-Name-First: Aymen Author-X-Name-Last: Mselmi Author-Name: Boutheina Regaieg Author-X-Name-First: Boutheina Author-X-Name-Last: Regaieg Title: Corporate governance and systemic risk of Tunisian banks Abstract: This paper studies the relationship between systemic risk measures and internal governance mechanisms of banking institutions and managers' entrenchment level. Our study examines a sample of 11 Tunisian listed banks over the 2006 to 2013 period. The aim is to determine systemic banks, the main governance internal mechanisms and managers' entrenchment level that contributed to attenuating or amplifying individual and overall systemic risk. The empirical results indicate that the internal governance mechanisms of banking institutions are positively associated with the long run marginal expected shortfall (LRMES), and that the presence of a risk management committee has no effect on the level of systemic risk incurred by banks. However, the regression on the LRMES and the firm's percentage of financial sector shortfall reveals that the respect of the norms of governance of the banking institutions leads to the minimisation of the individual contribution of the banks to the overall systemic risk of the Tunisian banking sector. Journal: Int. J. of Corporate Governance Pages: 23-51 Issue: 1 Volume: 9 Year: 2018 Keywords: corporate governance; entrenchment; financial performance; systemic risk. File-URL: http://www.inderscience.com/link.php?id=90611 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:9:y:2018:i:1:p:23-51 Template-Type: ReDIF-Article 1.0 Author-Name: Ekta Sikarwar Author-X-Name-First: Ekta Author-X-Name-Last: Sikarwar Author-Name: Ganesh Kumar Nidugala Author-X-Name-First: Ganesh Kumar Author-X-Name-Last: Nidugala Title: Ownership structure, hedging incentives and exchange rate exposure Abstract: The study examines the impact of ownership structure on exchange rate exposure using a sample of 651 Indian firms over the period 2001 to 2013. The study finds that ownership structure, in which agency costs and monitoring problems are lower, is associated with a reduced level of exchange rate exposure. The evidence also reveals that currency derivative usage is associated with greater reduction in exchange rate exposure for firms that have lower agency and monitoring problems obtained from their ownership structure. This study has important implications for managers, shareholders and investors who are associated with assessing a firm's exposure to exchange rate risk. Journal: Int. J. of Corporate Governance Pages: 52-72 Issue: 1 Volume: 9 Year: 2018 Keywords: ownership structure; exchange rate exposure; hedging; corporate governance; India. File-URL: http://www.inderscience.com/link.php?id=90618 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:9:y:2018:i:1:p:52-72 Template-Type: ReDIF-Article 1.0 Author-Name: Teddy Ossei Kwakye Author-X-Name-First: Teddy Ossei Author-X-Name-Last: Kwakye Author-Name: Godfred Matthew Yaw Owusu Author-X-Name-First: Godfred Matthew Yaw Author-X-Name-Last: Owusu Author-Name: Rita Amoah Bekoe Author-X-Name-First: Rita Amoah Author-X-Name-Last: Bekoe Title: Audit committee roles, responsibilities and characteristics in Ghana: the perception of 'agency stakeholders' Abstract: This paper examines the perception of firms' major 'agency stakeholders' - external auditors, investors and senior management - of Ghanaian listed companies on the roles, responsibilities and desirable characteristics of an effective corporate audit committee (AC). Employing a survey approach to this study, the paper documents that 'agency stakeholders' in Ghana associate the role and responsibilities of AC more with firms' internal audit function and processes than any other unit which AC has oversight responsibilities. It also demonstrates that corporate stakeholders do not attach the same level of importance to the roles, responsibilities and characteristics of AC. The paper, therefore, highlights the need for stakeholders to be aware of and consider the new dynamics of AC functions and processes with equal importance to promote effective practice. Journal: Int. J. of Corporate Governance Pages: 73-90 Issue: 1 Volume: 9 Year: 2018 Keywords: audit committee; corporate governance; GSE; Ghana Stock Exchange; internal audit; stakeholders; agency; perception; board of directors; emerging markets; effectiveness; roles and responsibilities; characteristics. File-URL: http://www.inderscience.com/link.php?id=90620 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:9:y:2018:i:1:p:73-90 Template-Type: ReDIF-Article 1.0 Author-Name: Veerma Puri Author-X-Name-First: Veerma Author-X-Name-Last: Puri Author-Name: Manoj Kumar Author-X-Name-First: Manoj Author-X-Name-Last: Kumar Title: Factors influencing adoption and disclosure of voluntary corporate governance practices by the Indian listed firms Abstract: This study is aimed at ascertainment of factors influencing adoption and disclosure of voluntary corporate governance practices (VCGP) of Indian listed firms. Results revealed that: a) there exists a large variation in VCGP across Indian firms; b) VCGP of Indian firms are significantly affected by their size, financial leverage, ownership concentration, industry type, the effectiveness of their audit committees, foreign listing status and type of external auditors. Further, this study confirmed: a) the substitution effect of 'Leverage' and 'Ownership Concentration' on adoption and disclosures of VCGP; b) the presence of interaction (interplay) between 'Leverage' and 'Ownership Concentration'. While firms with high and moderately diversified shareholding pattern depict substitution effect of leverage on adoption of VCGP, firms with highly concentrated shareholding pattern depict substitution effect of ownership concentration on adoption of VCGP. Journal: Int. J. of Corporate Governance Pages: 91-126 Issue: 1 Volume: 9 Year: 2018 Keywords: VCGP; voluntary corporate governance practices; voluntary corporate governance index; India; corporate governance theories; substitution theory. File-URL: http://www.inderscience.com/link.php?id=90621 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:9:y:2018:i:1:p:91-126 Template-Type: ReDIF-Article 1.0 Author-Name: Nelson Waweru Author-X-Name-First: Nelson Author-X-Name-Last: Waweru Title: Audit committee characteristics, board ethnic diversity and earnings management: evidence from Kenya and Tanzania Abstract: This paper investigates the relationship between audit committee characteristics, board ethnic diversity and earnings management in Eastern Africa. We attempt to determine whether compliance with audit committee guidelines has constrained earnings management in companies operating in an environment where control of corruption is considered weak. We include firm performance to the modified Jones model to measure discretionary accruals. The data are collected from annual reports over the period 2005-2014 resulting to a total of 480 firm-year observations. Panel data models are employed in the analyses. The results show that absolute discretionary accruals average about 11.5%, while the independence of the audit committee, the presence of a financial expert on the audit committee and board ethnic diversity were negatively and significantly related to earnings management. We also find that audit committee structures are not country specific. Journal: Int. J. of Corporate Governance Pages: 149-174 Issue: 2 Volume: 9 Year: 2018 Keywords: corporate governance; board ethnic diversity; BED; earnings management; discretionary accruals; Kenya; Tanzania. File-URL: http://www.inderscience.com/link.php?id=91271 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:9:y:2018:i:2:p:149-174 Template-Type: ReDIF-Article 1.0 Author-Name: Athula Manawaduge Author-X-Name-First: Athula Author-X-Name-Last: Manawaduge Author-Name: Anura De Zoysa Author-X-Name-First: Anura De Author-X-Name-Last: Zoysa Author-Name: Kathy Rudkin Author-X-Name-First: Kathy Author-X-Name-Last: Rudkin Title: Corporate governance and postcolonialism: the experience of Sri Lanka Abstract: This paper explores the perceived adequacy of Anglo-American corporate governance reforms in an emerging market. Using a perception survey of Sri Lanka's corporate governance stakeholders, 277 questionnaire survey responses from five stakeholder groups in Sri Lanka are used in factor and regression analyses. This empirical study finds that adoption of best practice Anglo-American policies and regulations do not result in the perception of good corporate governance by stakeholders. The application of postcolonial theory offers an insight into this discrepancy. Current technical modes of investigation only replicate the modernity narrative. Policy setters and regulators should consider corporate governance as a cultural practice as well as a technical practice, to better serve stakeholder perceptions. This study introduces postcolonial theory as a means of cultural evaluation of corporate governance practices. Journal: Int. J. of Corporate Governance Pages: 127-148 Issue: 2 Volume: 9 Year: 2018 Keywords: stakeholder; postcolonial; emerging markets; Sri Lanka; factor analysis; quality of corporate governance. File-URL: http://www.inderscience.com/link.php?id=91272 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:9:y:2018:i:2:p:127-148 Template-Type: ReDIF-Article 1.0 Author-Name: Mahendra Raj Author-X-Name-First: Mahendra Author-X-Name-Last: Raj Author-Name: Rajesh Kumar Author-X-Name-First: Rajesh Author-X-Name-Last: Kumar Author-Name: Sujit Sukumaran Author-X-Name-First: Sujit Author-X-Name-Last: Sukumaran Title: Agency costs in US banks - have the factors changed post crisis? Abstract: This study analyses the effectiveness of the series of post-2008 regulatory reforms in the banking industry. The paper aims to identify and classify new measures of agency costs. The results suggest that agency costs have increased in the post economic recession period. Agency costs have increased for all banks irrespective of sizes. A new theoretical framework on behavioural lines is proposed for the manifestation of agency costs. The study suggests that four types of behavioural factors result in agency costs - self-enrichment, complacency, cover-up and risk affinity. Agency costs originate due to the self-enrichment behavioural nature of managers. The study provides insights to the fact that management behaviour may adapt to both the external and internal environment to facilitate agency costs. The study suggests that the new regulatory measures may not have worked well on expected lines or may have provided adverse incentives which would have increased agency costs. Journal: Int. J. of Corporate Governance Pages: 175-200 Issue: 2 Volume: 9 Year: 2018 Keywords: agency costs; self-enrichment; complacency; cover-up; risk affinity. File-URL: http://www.inderscience.com/link.php?id=91276 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:9:y:2018:i:2:p:175-200 Template-Type: ReDIF-Article 1.0 Author-Name: Haileslasie Tadele Author-X-Name-First: Haileslasie Author-X-Name-Last: Tadele Author-Name: Helen Roberts Author-X-Name-First: Helen Author-X-Name-Last: Roberts Author-Name: Rosalind H. Whiting Author-X-Name-First: Rosalind H. Author-X-Name-Last: Whiting Title: Transparency and microfinance institutions' risk in Sub-Saharan Africa Abstract: Using a sample of 151 MFIs from 21 countries over the 2005-2014 period, we examine the impact of transparency on MFIs' risk in Sub-Saharan Africa (SSA). We use a three-stage least squares method to address the issue of reverse causality between transparency and risk. Our results indicate that SSA MFIs have low levels of failure risk and operate in a moderate business disclosure environment. We find that higher MFI transparency reduces Not-for-profit MFIs (NFP MFIs') financial and insolvency risk. However, greater transparency is associated with higher credit risk for both for-profit (FP) and NFP MFIs and increases FP MFIs' failure risk. Country-level business disclosure does not influence MFI risk. Overall, our results provide new empirical evidence identifying the difference between for-profit and not-for-profit MFIs' risk behaviour and highlight the impact of transparency on MFI risk. Journal: Int. J. of Corporate Governance Pages: 201-226 Issue: 2 Volume: 9 Year: 2018 Keywords: microfinance institution; MFI; risk; Sub-Saharan Africa; SSA; transparency. File-URL: http://www.inderscience.com/link.php?id=91277 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:9:y:2018:i:2:p:201-226 Template-Type: ReDIF-Article 1.0 Author-Name: Shinu Vig Author-X-Name-First: Shinu Author-X-Name-Last: Vig Author-Name: Manipadma Datta Author-X-Name-First: Manipadma Author-X-Name-Last: Datta Title: Reviewing and revisiting the use of corporate governance indices Abstract: The recent developments in the regulatory framework on corporate governance worldwide have drawn the attention of the academic world on corporate governance issues, and especially on the measurement of the quality of corporate governance. Corporate governance is a complex mechanism with multiple attributes. A comprehensive corporate governance index is thus needed to concentrate all of the governance mechanisms into a single integrated, yet informative score which can reflect upon the overall quality of a firms' corporate governance. Several methods of measurement of quality of corporate governance have been employed by the academic researchers and the commercial service-providers to measure the same underlying phenomenon, i.e., the quality of corporate governance. This paper examines, through extensive review of the extant literature, the use, problems and prospects of CG indices as a correct and dependable measure of quality of corporate governance and analyses the challenges in the construction and interpretation of corporate governance indices. Journal: Int. J. of Corporate Governance Pages: 227-241 Issue: 3 Volume: 9 Year: 2018 Keywords: corporate governance; index; rating; measures of quality; firm performance; indices; good governance. File-URL: http://www.inderscience.com/link.php?id=94510 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:9:y:2018:i:3:p:227-241 Template-Type: ReDIF-Article 1.0 Author-Name: Ohaness G. Paskelian Author-X-Name-First: Ohaness G. Author-X-Name-Last: Paskelian Author-Name: Stephen Bell Author-X-Name-First: Stephen Author-X-Name-Last: Bell Author-Name: Julia Creek Author-X-Name-First: Julia Author-X-Name-Last: Creek Title: The impact of ownership structure on dividend policy and cash holdings for Chinese privatised firms Abstract: This paper examines the impact of ownership structure on dividend policies and cash holdings of privatised Chinese firms. In particular, we examine investor valuation of dividends and cash holdings between firms where the Chinese Government holds majority ownership versus firms where private and foreign stockholders possess substantial ownership. We also examine measures designed to reflect agency problems in privatised Chinese firms to determine if dividend and cash holding policies can alleviate these agency problems. We find that government ownership has negative impact on firm value in China. In addition, we find that in firms where the government ownership is substantial, holding large reserves of cash does not impact on the firm's future profitability. In contrast, we find that firms with low government ownership concentration have better use for cash thus, relatively lower dividend payments constitutes positive signal about the firm's future prospects. Finally, we find foreign ownership has positive impact on firm value and contributes to mitigation of agency problems in Chinese firms. Journal: Int. J. of Corporate Governance Pages: 242-259 Issue: 3 Volume: 9 Year: 2018 Keywords: cash holdings; ownership structure; corporate governance; Chinese firms; dividend policy; government ownership. File-URL: http://www.inderscience.com/link.php?id=94512 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:9:y:2018:i:3:p:242-259 Template-Type: ReDIF-Article 1.0 Author-Name: Abdul-Nasser El-Kassar Author-X-Name-First: Abdul-Nasser Author-X-Name-Last: El-Kassar Author-Name: Walid El Gammal Author-X-Name-First: Walid El Author-X-Name-Last: Gammal Author-Name: Samir Trabelsi Author-X-Name-First: Samir Author-X-Name-Last: Trabelsi Author-Name: Bilal Kchouri Author-X-Name-First: Bilal Author-X-Name-Last: Kchouri Title: Corporate governance in Lebanese banks: focus on board of directors Abstract: This study investigates the corporate governance (CG) mechanisms applied in the Lebanese banks with a focus on the board of directors (BOD). We collected board data for 67 banks between 2013 and 2015. The results document a lack of consistency in the disclosure of BOD practices where half of the banks do not abide by international standards with disclosed information being minimal. Moreover, banks applying the ISS standards at the BOD level did not prove any better financial performance. These findings are based on the fact that Lebanese banks have the right to lend the central bank while foreign banks do not, thus giving the local banks higher chances for profitable and less risky investments. The central bank also provides continuous support to the Lebanese banks through financial facilities to stimulate the economy in Lebanon. Journal: Int. J. of Corporate Governance Pages: 260-299 Issue: 3 Volume: 9 Year: 2018 Keywords: corporate governance; board of directors; BOD; banks; Lebanon. File-URL: http://www.inderscience.com/link.php?id=94514 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:9:y:2018:i:3:p:260-299 Template-Type: ReDIF-Article 1.0 Author-Name: Ahmed Abousamak Author-X-Name-First: Ahmed Author-X-Name-Last: Abousamak Author-Name: Tamer Mohamed Shahwan Author-X-Name-First: Tamer Mohamed Author-X-Name-Last: Shahwan Title: Governance mechanisms and earnings management practices: evidence from Egypt Abstract: This study develops an aggregate corporate governance index (ACGINX) composed of four individual corporate governance (CG) indices - disclosure and transparency index, board of directors index (BoDINX), shareholders' rights and investor relations index and ownership and control structure index - to investigate the assumed effect of each sub-index and the ACGINX on mitigating the practices of earnings management in the Egyptian context during 2008-2016. In addition to the effect of board size, institutional ownership, and ownership concentration, the current study executes panel data analysis to regress the practices of earnings management on the above-mentioned CG mechanisms. It does so after controlling for seven variables that may affect this relationship, i.e., firm size, leverage, state ownership, losses, book-market ratio, type of audit report, and year effect. The results are inconclusive, showing traded-off significant relationships among control variables and earnings management practices assessed via different earnings management measures. Journal: Int. J. of Corporate Governance Pages: 316-346 Issue: 3 Volume: 9 Year: 2018 Keywords: corporate governance; earnings management; Egypt; emerging market; panel data analysis. File-URL: http://www.inderscience.com/link.php?id=94515 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:9:y:2018:i:3:p:316-346 Template-Type: ReDIF-Article 1.0 Author-Name: Neeti Khetarpal Sanan Author-X-Name-First: Neeti Khetarpal Author-X-Name-Last: Sanan Title: Influence of board characteristics on CSR: a study of Indian firms Abstract: This study examined the relationship between corporate social responsibility (CSR) and board characteristics among large Indian firms. The examined board characteristics included the proportion of independent directors and female directors on the board. The final study sample included 171 firms that operate across multiple representative industries, and period of the study was from 2014 to 2016. Panel data analysis used the proportion of independent directors and female directors on the board as independent variables and CSR spending as the dependent variable. Board size, firm age, firm size, industry type, and profitability were the control factors. Available empirical evidence using the ordinary least squares and random effects estimation models showed that while female directors influenced a firm's CSR, independent directors did not have an impact. The results remained robust using alternate measures of a firm's CSR and different estimation methods. Journal: Int. J. of Corporate Governance Pages: 300-315 Issue: 3 Volume: 9 Year: 2018 Keywords: corporate social responsibility; CSR; Indian firms; female directors; independent directors. File-URL: http://www.inderscience.com/link.php?id=94516 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:9:y:2018:i:3:p:300-315 Template-Type: ReDIF-Article 1.0 Author-Name: Nirosha Hewa Wellalage Author-X-Name-First: Nirosha Hewa Author-X-Name-Last: Wellalage Author-Name: Stuart Locke Author-X-Name-First: Stuart Author-X-Name-Last: Locke Title: Do female directors create value for the shareholders? Case study of New Zealand publicly listed companies Abstract: The potential contribution from moving toward an even gender balance for those bodies charged with corporate governance, especially boards of directors, is discussed in this paper. Prior empirical research, reported in the literature, provides conflicting results. The likelihood of these opposite findings resulting from endogeneity suggests a dynamic GMM model as a preferable tool for analysing gender balance on boards. Agency theory is core for finance modelling of governance and increasing from the low level of female director proportion on boards reduces agency costs in the publicly listed companies in New Zealand. The positive effects diminish as the proportion of female directors reach higher levels. Is it the gender balance or competency set of the board contributing the gains? Our interpretation is that gender diversity quotas for women need to focus on acquiring relevant skills and qualifications required in boardrooms and gradually increasing participation goals is likely to be most efficacious through signalling the core competency base for improved performance. Journal: Int. J. of Corporate Governance Pages: 347-371 Issue: 4 Volume: 9 Year: 2018 Keywords: women; financial performance; principal-agent agency costs; principal-principal agency costs; New Zealand. File-URL: http://www.inderscience.com/link.php?id=96270 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:9:y:2018:i:4:p:347-371 Template-Type: ReDIF-Article 1.0 Author-Name: Naufal Alimov Author-X-Name-First: Naufal Author-X-Name-Last: Alimov Title: Public pension funds as shareholders and firm performance Abstract: Public pension funds are important shareholders around the world. How these funds manage their holdings is of a considerable interest. Are public pension funds likely to 'vote with their feet', or do they instead try to have an impact when they become dissatisfied with the performance of companies in their portfolios? This study thus tests two competing hypotheses on data from the Swedish pension system restructured at the turn of the millennium: 'exit', that is, sell underperforming company shares, or 'direct impact', that is, contribute actively to securing the resignation of underperforming CEOs and boards of directors. The findings indicate that public pension funds tend to sell their shares in underperforming companies, instead of seeking to influence them through corporate governance mechanisms that would increase the likelihood that underperforming CEOs or the boards of directors be replaced. Journal: Int. J. of Corporate Governance Pages: 372-400 Issue: 4 Volume: 9 Year: 2018 Keywords: institutional investors; public pension funds; shareholders; firm performance; corporate governance; investment decisions. File-URL: http://www.inderscience.com/link.php?id=96272 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:9:y:2018:i:4:p:372-400 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaolu Xu Author-X-Name-First: Xiaolu Author-X-Name-Last: Xu Author-Name: Susan M. Albring Author-X-Name-First: Susan M. Author-X-Name-Last: Albring Title: Audit committee director-auditor interlocking, audit pricing and industry specialisation Abstract: This study examines the relation between audit committee director-auditor interlocking and audit fees, as well as the effect of auditor industry specialisation on this relation. Using a sample of S%P 1,500 firms in the USA during the years 2004-2014, we find a positive relation between audit committee director-auditor interlocking and audit fees only for firms that select industry specialist auditors. Firms that select non-industry specialist auditors pay lower audit fees compared to the control firms which do not have either interlocked audit committees or interlocked audit committees through director-auditor links. The findings are robust after controlling for sample selection bias and unobserved omitted variables and using alternative measures of audit committee director-auditor interlocking. Additional analyses show that firms with audit committee director-auditor interlocking are more likely to select industry specialist auditors. These results indicate that audit committees with director-auditor interlocking demand high quality audits and extensive audit coverage due to reputation effects only when the selected auditors have higher reputational cost and more bargaining power. Journal: Int. J. of Corporate Governance Pages: 428-461 Issue: 4 Volume: 9 Year: 2018 Keywords: audit committee director-auditor interlocking; audit fees; auditor industry specialisation; USA. File-URL: http://www.inderscience.com/link.php?id=96273 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:9:y:2018:i:4:p:428-461 Template-Type: ReDIF-Article 1.0 Author-Name: Angie M. Abdel Zaher Author-X-Name-First: Angie M. Abdel Author-X-Name-Last: Zaher Author-Name: Dina M. Abdel Zaher Author-X-Name-First: Dina M. Abdel Author-X-Name-Last: Zaher Title: Towards a more accurate audit assessment: can corporate social performance provide clues? Abstract: Regulators have been particularly concerned with the increased frequency of auditor's deficiencies related to material misstatement as reported in the 2017 Public Company Accounting Oversight Board (PCAOB) inspection brief. This research examines the relationship between auditor's risk of failing to capture material misstatement and the clients' social responsibility concerns. The findings indicate that clients with social performance concerns (human rights, environment, and governance) were associated with higher auditor's risk assessment, as indicated by higher audit fees. The results are consistent after controlling for various auditor and client variables. Implications of this study support the importance of incorporating social performance of clients in the auditor's evaluation since it can provide key insights into the client's underlying risk of future litigations which can arise due to socially irresponsive behaviours. In doing so, we seek to come closer to an accurate client assessment as well as respond to the call of PCAOB for minimising the deficiencies of the auditing process particular in the area of material misstatement. Journal: Int. J. of Corporate Governance Pages: 401-427 Issue: 4 Volume: 9 Year: 2018 Keywords: audit quality; audit fees; corporate social performance; client risk; audit effort; audit risk; material misstatement. File-URL: http://www.inderscience.com/link.php?id=96274 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:9:y:2018:i:4:p:401-427 Template-Type: ReDIF-Article 1.0 Author-Name: Supriti Mishra Author-X-Name-First: Supriti Author-X-Name-Last: Mishra Author-Name: Pitabas Mohanty Author-X-Name-First: Pitabas Author-X-Name-Last: Mohanty Title: Does good governance lead to better financial performance? Abstract: The relationship between corporate governance and financial performance of firms has been a widely debated topic. More particularly, the direction of the relationship, whether better corporate governance leads to better financial performance or the vice versa has often been debated. More often, firms decide whether to have better governance standards within the company and this self-selection gives biased OLS regression results. In this paper, using data for Indian companies, we adjust for this endogeneity and find that corporate governance is positively related to financial performance. We finally find that the average ROA of well-governed firms would have decreased by almost 40% if they were poorly-governed. Journal: Int. J. of Corporate Governance Pages: 462-480 Issue: 4 Volume: 9 Year: 2018 Keywords: corporate governance in India; counter-factual outcomes; endogeneity; financial performance; switching regression. File-URL: http://www.inderscience.com/link.php?id=96276 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:ids:ijcgov:v:9:y:2018:i:4:p:462-480