Accounting
Tanzina Haque
Abstract
The establishment of the nomination and remuneration committee (a key element of corporate governance structures) arises from the imperative to uphold principles of fairness, impartiality and transparency within the organization which serves to strengthen stakeholders’ confidence and enhance overall ...
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The establishment of the nomination and remuneration committee (a key element of corporate governance structures) arises from the imperative to uphold principles of fairness, impartiality and transparency within the organization which serves to strengthen stakeholders’ confidence and enhance overall business performance. The purpose of this paper is to investigate the relationship between a firm’s financial performance and its nomination and remuneration committee (NRC). As shown in the section delineating the research technique, the statistical software STATA was employed to analyze the correlation between the independent and dependent variables in this inquiry. The dataset consisted of total 48 insurance firms listed in the Dhaka Stock Exchange over the time period of 2015 to 2022 resulting in a total of 384 firm-year observations. The results show that there is a statistically significant positive relationship between the financial measures (EPS, ROE) and the independent variable (NRC) except the ROA which is not statistically significant. This investigation seeks to address a gap in the existing literature by examining the company financial performance within the emerging insurance sector of Bangladesh. The study concludes by suggesting that further investigation and research in this area are warranted. Presumably, this means there are more aspects to explore regarding the relationship between financial performance and NRC in the context of the insurance sector in Bangladesh.
Saif Khan; Hashim Khan; Faisal Khan
Volume 6, Issue 1 , January 2019, , Pages 22-47
Abstract
In this study we have examined the effect of internal audit committee and external auditor quality on accrual-based measures of accounting conservatism, and the benefits of accounting conservatism on firms’ market performance. Moreover, this study also investigates whether the accrual-based conservatism ...
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In this study we have examined the effect of internal audit committee and external auditor quality on accrual-based measures of accounting conservatism, and the benefits of accounting conservatism on firms’ market performance. Moreover, this study also investigates whether the accrual-based conservatism mediate the relationship between audit committee and external auditor quality factors with market-based firms’ performance. A total of 543 sample firms are selected from the Bursa Malaysia for the period from 2004 to 2013. For data analysis, panel data methodology is employed and structural equation modeling (SEM) technique is used to test the developed hypotheses of this study. Results show that audit committee effectiveness and external auditor quality found to be significant with two-year-lagged effect on accrual-based measure of conservatism. Furthermore, accrual-based measure of conservatism mediated the relationship between (a) audit committee effectiveness and market-based firms’ performance, and (b) external auditor quality and market-based firms’ performance. The findings of this study contribute to the signaling theory, agency theory, reputation theory and accounting conservatism literature in emerging economies settings.
