دانلود رایگان مقاله انگلیسی اثر ویژگی های کمیته حسابرسی در ارائه مجدد مالی در مالزی - تیلور و فرانسیس 2018

ABSTRACT

This study investigates the influence of audit committee characteristics on the likelihood of financial restatements by firms in Malaysia. Annual reports of 350 firms that have restated their financial statements in the year 2008 and 2009 are analyzed. An additional 350 firms that did not restate their financial statements are considered, resulting in a total of 700 observations. Regression analysis identifies audit committee characteristics such as its independence, size, expertise and activity as statistically significant in explaining the likelihood of financial restatements. This article highlights the important role of the audit committee in mitigating financial restatements by firms in Malaysia.

Summary and conclusions

The main objective of this research is to investigate the implication of audit characteristics on firm’s financial restatement after the implementation of 14 W. M. WAN MOHAMAD ET AL. RMCCG2007 due to its heavy emphasizes on the role of the audit committee in improving firm’s corporate governance. In summary the results provides consistent evidence that audit committee size, the number of meetings it conducts, its members’ independence experiences have positive repercussions on firm’s financial restatement. The results suggest that efforts made by RMCCG2007 in improving the roles and functions of the audit committee have proven to be effective. However there are several limitations of this study.

Firstly, because Malaysia is unique and has different races that influence the country politically and economically, ethnicity has a major influence on how certain decisions may affect the business networking and rentseeking activities in major investment projects. Being a multiethnic country, board decision making may be influenced by the ethnic representation on the board. Ethnic Malays are argued to be politically influenced and may be subjected to higher audit fees due to their weaker governance structures, and some have argued otherwise. However some papers argue that ethnic Malay representation on the board may be due to their competency rather than political networking (Gomez & Jomo, 1997; Yatim, Kent, & Clarkson, 2006).