Effectiveness Score of the Board of Directors and Modified Audit Opinion: Empirical Evidence from Malaysian Publicly-Listed Companies

• 발행기관: 한국유통과학회
• 저자명: Waddah Kamal Hassan OMER Khaled Salmen ALJAAIDI Mohd Atef Md. YUSOF
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 7 No.8, 289~296쪽, 전체 8쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2020.08.30

영문 초록

The study investigates the association between the effectiveness of the board of directors and the likelihood that a company receives a modified audit opinion (as a measure of the quality of companies’ external financial reporting) in Malaysia. The sample companies were extracted from the population of publicly-available information mainly the annual reports of publicly-listed companies on the Bursa Malaysia. 136 firm-year observations listed on Bursa Malaysia were identified to examine the relationship between the effectiveness of the board of directors and a modified audit opinion. Data used in this study are collected from two separate sources – annual reports and Datastream. Any missing financial figure from Datastream was acquired from the annual reports. To test the study’s hypotheses;we use the pooled cross-sectional logistic regression analysis for 136 firm-year observations listed on Bursa Malaysia over the period 2009-2011. The evidence we have uncovered is consistent with the hypothesis that companies with large score of the board of directors’ effectiveness are less possible to receive a modified audit opinion. Therefore;the result confirms that the combined effect of the board of directors’ characteristics has a significant negative association with the likelihood of the companies receiving a modified audit opinion.

목차

1. Introduction

2. Literature Review

3. Data and Methodology

4. Empirical Results and Discussion

5. Conclusion

References

키워드

Modified Audit Opinion Financial Reporting Quality Board of Directors Effectiveness Score Malaysia