Evaluating The Factor Of Cost And Benefit Of Internal Audit

The financial and operational cost and benefits of internal auditing plays very vital role in the organizations. The main aim of this study is determine the importance and impact of both internal audit and internal audit outsourcing with in organizations. A 15 items perception of a financial and operational cost and benefit of internal audit usage survey was conduct to one organization of Oil and Gas Development Company Limited. The finding of the study shows that three variables were significant in the selection of internal audit but the two variables shows the negative results which indicate outsourcing is cheaper than in sourcing. A very common conclusion is that the internal facilities is more costly another choice to be used in outsourcing so that internal provider is less efficient than external providers as they developed the technological efficiencies, a study of this type would explain the factors dependable for the significance of in sourcing compare to outsourcing and to compare the cost and benefit of internal audit. Key Words: Cost, Benefit, Internal Audit, OGDCL, Pakista

Measuring Relationship between Digital Skills and Employability

In the growing economies like Pakistan and other countries, digital skils such as computer, communication, internet and advance digital skills are predictable to offer possible employees a major rim in securing their jobs and also protecting relatively high-paying jobs. Digital skills are not dual it has ranges and stages. There are number of International organizations that are making efforts on improving the people’s employability. I need more data in order to know the relationship between digital skills and employability in terms of which level of digital skills are enough for civilizing emplyability.  In this study I observe the digital skills assosiation with the employabilty using the Paf-Kiet University and National Foods Limited as a comparative study. Findings highlighted that digital skills can be a interpreter of employnment, the level of digital skills necessary to achieve these jobs is very high as one might imagine. In the rising economies perspective, digital skills are linked with high status jobs mainly combine with other reasons such as higher education. Implementation strategy  on the basis of the finiding of this study in order to improve employabilty, advising that revise the education policy and training efforts should focus on digital skills. Key words: Digital Skills, employabilty, Students’s, Employers, Relationship

The Role Of Auditor Characteristics: Earnings Management and Audit Committee Effectiveness

This study aims to analyze the moderating effect of auditor characteristics on the relationship between audit committee effectiveness and earnings management. Mechanisms of good corporate governance can limit and control the opportunistic actions of management. A highly effective audit committee will reduce the prevalence of earnings management. In addition to the audit committee as an internal party that oversees the credibility of financial statements, it is also necessary to supervise external parties, through the use of external auditors. With expectations of reducing earnings manipulation, this study examines the effects of the combination of an effective audit committee and an independent auditor. The research sample selection uses a purposive judgmental non-probability sampling technique. The sample obtained is 754 firm years, consisting of three years of company observations in the Indonesian capital market between 2016 and 2018, except those in the financial sector. Earnings management is measured by accrual value using a modified Jones model. The independent variable of the study is the effectiveness of the audit committee (EFAC) which will be assessed using the DeZoort index. The results of the empirical testing support the research hypothesis; the more effective the audit committee is and the longer the external audit period is, the more prevalent earnings management will be. In addition, the more effective the audit committee is, coupled with the use of one of the big four auditors, the less prevalent earnings management will be, which means the auditor's reputation also strengthens the relationship between the effectiveness of the audit committee and earnings management. Further, the moderating effect of auditor specialization on the influence of the audit committee on earnings manipulation did not provide significant results

US States Business Incentives and Investment Efficiency of Domestic Firms: Is Monitoring Necessary? by Moon Kyung Cho - Texas A&M International University, United States

PS 3.04 Accounting and Governance Discussant: Kashan Pirzada – Birmingham City University, United Kingdom Abstract: Using the US data from 2004 to 2018, this study investigates whether and how various forms of state business incentives influenced investment efficiency of domestic firms. This study further elucidates the role of market-driven monitoring mechanisms (economic competition) versus firm-level monitoring mechanisms (corporate internal control systems) in conjunction with state business incentives and firm-level investment efficiency. I find that state business incentives (in the form of tax-based business incentives) provided by either the state or the federal government increase investment efficiency, whereas those provided by private sources decrease investment efficiency. In addition, sales- or asset-based economic competition have a negative impact on the relation between state business incentives and investment efficiency, whereas economic competition based on market size have a positive impact on this relation. Lastly, corporate internal control systems based on the Sarbanes-Oxley Act Sections 302 and 404 have a positive impact on the relationships between using indirect financing methods of supplying state business incentives and investment efficiency. This study provides evidence of the positive effects of equity-oriented state business incentives on firm-level investment efficiency and suggests careful selection of monitoring mechanisms enhancing firm-level investment efficiency in relation to state business incentives

Aligning Corporate Strategies with the Sustainable Development Goals

The preceding three decades have been characterised by several social, technological, and environmental changes, which have customized the operational environment of corporations. One of those changes is the emergence of green sustainability (Gray, 1994; Abbas, 2019), which has an interlacing effect on creating customer value and sustaining companies’ environmental, social, and financial performance. The responses to these important issues are gaining relevance, increasing the impetus for companies to develop new business models consistent with this paradigm and share this information with external stakeholders, including the public. Such an approach will help create a holistic, integrated view of implementing sustainable development practices and foster a new culture consistent with a large-scale transition to a green sustainable future

Corporate strategies for sustainable development and adoption of new technologies

Technological advancements might have positive or negative impacts on sustainability. It’s essential to understand the adoption of these technologies to achieve better sustainability. The United Nations 2030 Agenda and the associated SDGs have been promoted as tools suitable to alleviate poverty, protect Planet Earth, and contribute to worldwide prosperity (UN, 2015; Tsalis, 2020). But governments alone cannot achieve sustainable development; they must be supported by the private sector, which plays a colossal role in advancing and achieving the SDGs. Specifically, the private sector can integrate the ‘green’ principles into their corporate strategies. This integration depends on, and requires, an effective approach to green development and the knowledge generation of SDGs as embedded in the companies’ functions, values, and day-to-day operations. The papers in this special issue investigate the role of corporate strategies for sustainable green development and knowledge generation in the implementation of the SDGs or principles by Asian and Eastern European companies from Malaysia, Vietnam, Indonesia, Emirates, Zimbabwe and Russia. Hence, there is a need to expand the research in further studies to gauge the contribution of corporate strategies towards the achievement of the SDGs in a wider group of countries. These further studies could also focus on a comparative cross-country analysis to provide insights into how institutional differences among countries influence the implementation and achievement of the SDGs. In addition, there is also a need to understand the role of other corporate strategies, including integrated reporting and long-term value, in the achievement of the SDGs. It is a matter of great importance for companies to explain how businesses create value for their key stakeholders in the long term by implementing the SDGs. The insights drawn from this special issue contribute to the existing literature and provide valuable practical information for practitioners, policymakers, and developers. Practitioners can rely on the insights provided in this special issue to make informed decisions that consider both the short-term and long-term impacts of technology solutions and their adoption in organizations. They need to consider the opportunities and challenges associated with technology adoption and develop plans to mitigate the negative impacts and maximize the positive effects of technology adoption. Additionally, policymakers can use the findings of the eight papers to establish policies and regulations that encourage the adoption of sustainable technologies that serve society while minimizing the negative impacts on the environment, economy, and the general public. Further, developers can consider the barriers identified in the analysis to develop more effective solutions. They can also incorporate sustainable practices into the development process to ensure their technologies align with sustainable development principles

The Link Between ESG Performance and Earnings Quality

The field of study pertaining to environmental, social, and governance (ESG) concerns has gained significant interest in recent years, primarily driven by increasing worldwide concern about climate change and environmental challenges. Prior research has examined corporate social responsibility (CSR) and environmental, social, and governance (ESG) initiatives as actions that may be susceptible to opportunistic conduct by managers, which may be observed via earnings management. This research aims to investigate different perspectives of earnings quality (EQ) by examining the determinants of EQ described as inherent operating environment and risk of the industry business process (innate factors of EQ) and management reporting decision (manager’s discretion of EQ). Separating the components of EQ determinants individually is considered an advantage by the previous researcher. Using fixed effect panel data, this study demonstrates that ESG performance is positively associated with discretionary accruals and negatively related to innate earnings quality. This phenomenon might perhaps be attributed to the challenges posed by the sector, characterized by rapid digital transformation and unexpected digital development in the markets. This observation suggests that over time, the utilization of symbolic ESG business practices, which are susceptible to greenwashing, would have a detrimental effect on the fundamental earnings quality influenced by the operational context and the risk of uncertainty associated with the organization

Nexus among Corporate Governance, Intellectual Capital Disclosure, and Firm Performance

Objective - This study conceptually examines a link between corporate governance, intellectual capital disclosure, and firm performance. With the support of signaling theory, this paper develops propositions for the relationship among corporate governance, intellectual capital disclosure, and firm performance. Methodology/Technique - The development and conclusion of this discursive paper as a conceptual one point out the possible relationship among corporate governance, intellectual capital disclosure, and firm performance. The underlying methodology of institutional discourse and integration with dynamic parameters is formalized. Findings - The results of the conceptual framework of this paper on corporate governance are contrasted with the approach to corporate governance in mainstream literature. Also examined is the theoretical and philosophical background of corporate governance, intellectual capital disclosure, and firm performance. Novelty - Although the importance of intellectual capital to firm performance is well established, the triple relationship between the board nomination and governance committee and the board remuneration committee, intellectual capital disclosure, and firm performance is exposed based on the effect of one on another

Board Governance Mechanisms and Liquidity Creation: A Theoretical Framework

Objective - The highly concentrated ownership structure, lack of quality information, and weak regulatory environments caused imbalances in the movement of cash flows and thereby put the liquidity levels of Gulf Cooperation Council (GCC) banks on a downward trend. This prompted policymakers in the GCC region to modify their Corporate Governance (C.G.) codes to boost the financial position of the GCC banking industry as liquidity providers and minimize systemic risk. Therefore, the purpose of this study is to conceptually investigate the relationship between board governance attributes and liquidity creation in the GCC banking sector. Methodology – The methodology employed in this study is a review of prior research on bank governance mechanisms and liquidity creation to gather perspective and establish a prediction about the association between board attributes and liquidity creation in the GCC banking industry. Findings – The study concludes that there is a positive correlation between the analyzed board governance features and the creation of liquidity based on several theories gleaned from a review of prior research. Novelty – The study evaluates bank liquidity creation and how board attributes influence it

Board governance mechanisms and liquidity creation: Empirical evidence from GCC banking sector

While various board governance mechanisms, such as board independence, expertise, diversity, and committee structures, play a crucial role in over-seeing and guiding bank operations, the extent of their impact on liquidity creation as the preeminent function of the GCC banking sector remains unclear and unexplored. To fill this gap, therefore, this study examines the impact of board governance attributes on liquidity creation in the GCC banking sector. In addition, this study investigates the moderating effect of government ownership on the association between board governance features and bank liquidity creation. To accomplish the objectives of our study, a sample of 68 listed banks over the period of 2010– 2021 in the GCC region were employed, and feasible generalized least squares (FGLS) regression was used. The findings indicate that board governance mechanisms in terms of independence, foreign directors, education level, meetings, and board size play a positive role in enhancing bank liquidity creation, whereas the presence of female board members does not affect liquidity creation. Moreover, the supplementary analyses and endogeneity tests provide further validation for the primary regression results, thereby confirming the robustness of the findings. The study’s findings are among the earliest empirical evidence of the effect of board governance attributes on liquidity creation in the GCC banking sector