Ownership structure and discretionary loss provisions: the moderating effect of audit committee independence
This study investigates the interactive effect of an independent audit committee on the relationship concerning ownership structure and discretionary loss provisions. The study utilizes 29 listed Nigerian financial institutions as a sample using data from 2006 to 2015. The results establish that aud...
| Main Authors: | , , |
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
2018
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| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/26069/1/ICAS%202018%2074%2079.pdf |
| _version_ | 1825805404536307712 |
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| author | Mohamed, Mudzamir Garba, Sunusi Ismail, Shahifol Arbi |
| author_facet | Mohamed, Mudzamir Garba, Sunusi Ismail, Shahifol Arbi |
| author_sort | Mohamed, Mudzamir |
| collection | UUM |
| description | This study investigates the interactive effect of an independent audit committee on the relationship concerning ownership structure and discretionary loss provisions. The study utilizes 29 listed Nigerian financial institutions as a sample using data from 2006 to 2015. The results establish that audit committee independence negatively influences discretionary loss provisions. Furthermore, it is found that CEO, block and foreign ownership have a direct influence on discretionary loss provisions. Moreover, audit committee independence moderates these direct relationships negatively. While institutional ownership has a direct influence on discretionary loss provisions, similarly, audit committee independence moderates this direct relationship positively. Additionally, audit committee independence fails to moderate but has a direct influence on discretionary loss provisions. Conversely, audit committee independence fails to moderate the relationship between the executive and non-executive ownership with discretionary loss provisions. The study suggests that relevant authorities should impose laws to motivate firms to have more independent members in audit committee to reduce conflicts of interest between the executive and non-executive ownership over the audit committee members’ composition to protect the interests of other shareholders. |
| first_indexed | 2024-07-04T06:31:46Z |
| format | Conference or Workshop Item |
| id | uum-26069 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:31:46Z |
| publishDate | 2018 |
| record_format | eprints |
| spelling | uum-260692019-06-12T06:00:19Z https://repo.uum.edu.my/id/eprint/26069/ Ownership structure and discretionary loss provisions: the moderating effect of audit committee independence Mohamed, Mudzamir Garba, Sunusi Ismail, Shahifol Arbi HF5601 Accounting This study investigates the interactive effect of an independent audit committee on the relationship concerning ownership structure and discretionary loss provisions. The study utilizes 29 listed Nigerian financial institutions as a sample using data from 2006 to 2015. The results establish that audit committee independence negatively influences discretionary loss provisions. Furthermore, it is found that CEO, block and foreign ownership have a direct influence on discretionary loss provisions. Moreover, audit committee independence moderates these direct relationships negatively. While institutional ownership has a direct influence on discretionary loss provisions, similarly, audit committee independence moderates this direct relationship positively. Additionally, audit committee independence fails to moderate but has a direct influence on discretionary loss provisions. Conversely, audit committee independence fails to moderate the relationship between the executive and non-executive ownership with discretionary loss provisions. The study suggests that relevant authorities should impose laws to motivate firms to have more independent members in audit committee to reduce conflicts of interest between the executive and non-executive ownership over the audit committee members’ composition to protect the interests of other shareholders. 2018 Conference or Workshop Item PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/26069/1/ICAS%202018%2074%2079.pdf Mohamed, Mudzamir and Garba, Sunusi and Ismail, Shahifol Arbi (2018) Ownership structure and discretionary loss provisions: the moderating effect of audit committee independence. In: 5th International Conference on Accounting Studies (ICAS 2018), 16-17 October 2018, Penang, Malaysia. http://icas.my/index.php/proceedings/8-icas-2018-proceedings |
| spellingShingle | HF5601 Accounting Mohamed, Mudzamir Garba, Sunusi Ismail, Shahifol Arbi Ownership structure and discretionary loss provisions: the moderating effect of audit committee independence |
| title | Ownership structure and discretionary loss provisions: the moderating effect of audit committee independence |
| title_full | Ownership structure and discretionary loss provisions: the moderating effect of audit committee independence |
| title_fullStr | Ownership structure and discretionary loss provisions: the moderating effect of audit committee independence |
| title_full_unstemmed | Ownership structure and discretionary loss provisions: the moderating effect of audit committee independence |
| title_short | Ownership structure and discretionary loss provisions: the moderating effect of audit committee independence |
| title_sort | ownership structure and discretionary loss provisions the moderating effect of audit committee independence |
| topic | HF5601 Accounting |
| url | https://repo.uum.edu.my/id/eprint/26069/1/ICAS%202018%2074%2079.pdf |
| work_keys_str_mv | AT mohamedmudzamir ownershipstructureanddiscretionarylossprovisionsthemoderatingeffectofauditcommitteeindependence AT garbasunusi ownershipstructureanddiscretionarylossprovisionsthemoderatingeffectofauditcommitteeindependence AT ismailshahifolarbi ownershipstructureanddiscretionarylossprovisionsthemoderatingeffectofauditcommitteeindependence |