• The Journal of Asian Finance, Economics and Business
• /
• v.6 no.1
• /
• pp.59-69
• /
• 2019

The auditor, an important instrument of corporate governance, ensures the transparency and accountability of the firm to the stakeholders. The objective of this paper is to explore the impact of audit characteristics on firm performance. In this study, external audit quality (BIG4), frequencies of audit committee meetings, and audit committee size are used as the proxies of audit characteristics and firm performance is measured through ROA, profit margin and EPS. A total of 503 firm years are considered as sample size from the listed manufacturing firms of Dhaka Stock Exchange (DSE) during the period of 2013 to 2017 to find out the impact of audit characteristics on firm performance. In this study, multivariate regression analysis is conducted using the pooled OLS method. Moreover, time dummy and lag model of multivariate analysis are also analyzed as robust check. The multivariate regression results find that external audit quality (BIG4) and audit committee size are significantly positively associated with firm performance. This study also finds that there is a significant negative relationship between audit committee meeting and firm performance. This study recommends that the regulatory authority and audit committee should review the frequencies of audit committee meeting to make it more effective to ensure better firm performance.

• Korean Business Review
• /
• v.18 no.1
• /
• pp.19-41
• /
• 2005

The informativeness of accounting earnings to investors may be used as a measure of the quality of accounting information. The ownership structure is considered to be related to both of two variables, the reliability of earnings reflecting the economic performance of the enterprise and the existence of alternative information sources. Earnings manipulation may mitigate the correlation between accounting earnings and the economic performance and alternative information sources decrease the value of accounting earnings as an information. Thus ownership structure could influence the informativeness of accounting earnings. This paper classifies ownership into three categories, management or inside ownership, institutional investors and large outside blockholders, and diffuse outside ownership and examines theoretically the difference of information effectiveness under each ownership structure. The earnings manipulation hypothesis supports the assertion that the separation of ownership from control motivates earnings manipulation. And differential information hypothesis suggests that more non-accounting information of firms with institutional or concentrated outside ownership is provided. Outside blockholders have alternative information sources that make accounting manipulation ineffective. While most previous studies have examined the effect of ownership on the informativeness of earnings from earnings manipulation hypothesis, this study is motivated by both earnings manipulation hypothesis and differential information hypothesis.

• The Journal of the Korea Contents Association
• /
• v.6 no.4
• /
• pp.125-135
• /
• 2006

The objective of this study is to verify effects of employees' cognition of their job characteristics in production department of manufacturing companies on production performance and also to verify the moderating effect of the characteristics of managerial accounting information in the relationship between job characteristics and productivity. To achieve this purpose, this study divides the factors of job characteristics into task diversity, task significance, autonomy, and task identity and production performance into flexibility, time, and quality. The results of this study are as follows. First, There is a significant relationship between job characteristics and production performance according to employees' cognition of their job characteristics. Second, There is a significant relationship between job characteristics and production performance according to the characteristics of managerial accounting information.

• Journal of the Korean Operations Research and Management Science Society
• /
• v.28 no.4
• /
• pp.61-84
• /
• 2003

This study empirically examined the impact of national culture on the amount of information provided by management accounting information systems (MAIS). Two very different cultures, the Korean and Australian cultures, were considered in our study The results showed that the much more flexibility performance information is provided in Korean firms, while the amount of quality performance information and traditional cost control information (TCCI) produced in Australian firms is much more than in Korean firms. However, it was found that in the amount of financial performance information and advanced cost control information (ACCI), there exist no significant differences between Korean firms and Australian firms. We also investigated the effect of the three-way interactions among national culture, level of advanced manufacturing technology (AMT), and information on production performance. The results of this study revealed a significant impact of three-way interactions on the improvement of production performance. In conclusion, we suggest that under high levels of AMT, Korean firms need a large amount of information-based MAIS, while Australian firms require the ACCI and nonfinancial performance information-oriented MAIS.

• Proceedings of the Korea Association of Information Systems Conference
• /
• 2005.12a
• /
• pp.281-295
• /
• 2005

The study of purpose is to analyze the effects of quality factors of ERP system on organizational performance. Where as many preceding studies have been focused on the factors of general service quality, this study analyzed interrelation between quality factors and organizational performance of corporation implemented ERP system using questionnaire. As compared with preceding studies which mainly concerned with system quality factors and information quality factors, this study specially added service quality to analyzing interrelation with organizational performance. Questionnaire consists of survey for the interrelation between ERP system implemented corporation and organizational performance. The results are as follows. First, quality factors of ERP system effected on organizational performance by t-test. Second, quality factors of ERP system showed significance statistically on the effects of organizational performance by t-test. The results of this study have a great expectation for the role of offering useful insight and information in the field of business and education. First, make sure that quality factors have significant effects on organizational performance when implemented ERP system in the business, investment and research on quality factors should be combined with. Second, in a sense that this study was added to service quality in research of quality factors by the detailed approaches which different from preceding studies, it is of highly practical use. Third, this study presents scientific foundation on quality improvement for quality factors of ERP system.

• Korean Management Science Review
• /
• v.20 no.2
• /
• pp.113-133
• /
• 2003

This study developed the ISM (Electronic Store Success Model) by basing upon the revised D&M IS Success Model and reflecting the characteristics of marketing and e business. The theoretical rationale of this model was as following : 1) Though the revised D&M IS Success Model (2002) must be more logical and complete model than the original D&M IS Success Model (1992), it did not reflect characteristics of marketing and e business. 2) In the marketing studios, Service Quality has been suggested as one of basic strategies for success. 3) In e business studies, Trust has been emerging as a potentially important antecedent of e loyalty. 4) There has been a paradigm shift from satisfaction to loyalty in marketing emphasis. 5) Nowadays, ERP (Enterprise Resource Planning) has been pervaded in many organizations and has supported PCA (Profit Center Accounting) or Channel based Accounting, so it has not been difficult to evaluate financial performance of Electronic Store. The ESM that has six dimensions (System Quality, information Quality. Service Quality, Trust, Loyalty, Financial Performance) and expresses the causal relationship among them was proposed and was compared with BSC (Balanced Scorecard), WebQual, and EWAM (Extended Web Assessment Method). The results showed that the ESM coincides with BSC and contains dimensions of WebQual, and EWAM.

• The Journal of Asian Finance, Economics and Business
• /
• v.9 no.6
• /
• pp.127-137
• /
• 2022

This paper aims to investigate the impact of corporate governance on the quality of integrated reporting. Corporate governance includes internal (board size, board independence, and board diversity) and external (audit quality and enforcement) governance factors. This paper develops an index to capture the quality of integrated reporting by employing the completeness of information required by the International Integrated Reporting Council (IIRC). For an international sample, the paper manually collects 160 integrated reports along with internal and external governance factors and employs multivariate analyses to examine the association between these governance factors and the quality of integrated reporting. The empirical results suggest that firms with a larger board of directors, a larger proportion of female members on board, and located in countries with enforcement for integrated reporting requirements have a higher quality of integrated reporting. Our conclusions still hold after accounting for several conditions, including the industry-fixed and year-fixed effects. Together, these results suggest that both internal and external governance factors are important determinants for the quality of integrating reporting. These results have several theoretical and practical implications as they fulfill the absence of relevant studies on addressing the impact of internal and external corporate governance factors on the quality of integrated reporting.

• The Journal of Industrial Distribution & Business
• /
• v.11 no.4
• /
• pp.39-46
• /
• 2020

Purpose: This study looks at the relevance between discretionary revenue and book-tax differences (hereafter BTDs). While the study of earnings management, which focused on discretionary accruals and real earnings management, has largely made, it has not yet been actively researched on discretionary revenues. Therefore, it was believed that discretionary revenue would expand the preceding study by looking at its relevance to BTD, known as financial reporting quality and measures of tax avoidance. In general, prior research suggested that earnings management make BTDs larger. Thus, the relationship between discretionary revenue and the amount of BTD is predicted positive. Research design, data and methodology: To this end, the method of discretionary revenues was used and BTDs measured in four ways. First, Earnings before income tax - estimated taxable income divided by total asset (BTD). Second is fractional rank variable of BTDs (FBTD). Third is Indicator variable equals 1 if the firm-year has a positive BTD, 0 otherwise (PBTD). Fourth is that Indicator variable equals 1 if the firm-year has a BTDs in top(bottom) quartile, 0 otherwise (LPBTD, LNBTD). 4,251 samples were analyzed in the Korean Security market (KOSPI) from 2003 to 2014. Results Empirical analysis shows that BTDs increases as discretionary revenue increases. These results were equally observed when BTDs was measured as a ranking variable or as a indicating variable. These results indicate that earnings management through the revenue of managers exacerbate the quality of financial reporting. Conclusions: In sum, discretionary revenues can be used as an indicator of making BTDs larger and meaningful as the first study of the Korean capital market where discretionary revenues affect accounting information quality. Investors need to increase interest in discretionary revenues because intervention in financial reporting through revenue accounts by managers can increase information asymmetry and agency costs. This means that studies on discretionary revenues that have been relatively small should be expanded. The results also provide important implications for the relevant authorities and investors. Despite these benefits, however, measurement error problems with estimates still appear as limited points, and prudent interpretations are required, and additional follow-up studies are needed in that variables that are not yet considered in this study may affect our findings.

• Asian Journal of Business Environment
• /
• v.10 no.1
• /
• pp.37-43
• /
• 2020

Purpose: The purpose of this study was to examine the relationship between portfolio quality and financial sustainability of microfinance institutions in Kenya. Research Design, Data, and Methodology: The analysis was based on a panel dataset of 30 microfinance institutions for the period of 2010 to 2018. Data was obtained from the Microfinance information exchange (MIX) database, and it was analyzed through descriptive and inferential statistics with the aid of STATA. Based on the results of the Hausman test, the study adopted the fixed effect regression model to test the research hypothesis. Results: The study found that portfolio quality had a positive significant effect on financial sustainability of Microfinance institutions in Kenya (β= 0. 211; p-value < 0.05). For the control variables; firm age had a positive effect (β= 0.773; p-value <0.05), while firm size (β= -0. 749; p-value < 0.05) had a negative effect on financial sustainability. Conclusions: The study concluded that portfolio quality has an important influence on the financial sustainability of microfinance institution. The study recommends that managers of microfinance institutions should devise good collection policies to improve portfolio quality while lessening loan default rate. The portfolio quality may improve the overall profitability and enhance investor confidence in their strategic decision-making on refinancing.

• Asia-Pacific Journal of Business
• /
• v.11 no.4
• /
• pp.271-289
• /
• 2020

Purpose - This paper examined the relation between Correction of Annual Reports and Earnings management. The annual reports are used as key reports for critical decision making by providing useful information to various stakeholders across the firm. Design/methodology/approach - The sequence of this study is analysed that each of the following two cases affects the earning management: 1. that corrections have been made; 2. Where financial information have been modified or non-financial information have been modified during the correction of the annual report. We draw an initial sample of firms listed on the Korea Stock Exchange from 2014 to 2017. Among these, we excluded firms that were not able to obtain the variables needed to measure the correction of Annual Reports and the earnings management. Finally, we use the 7,035 firm-year observations. Findings - Our empirical results of this study are as follows; First, it turned out that the earnings management of companies that report business reports on corrections is larger than those that do not. Second, among the types of annual report corrections, the correction of non-financial information is significantly larger on earnings management than the correction of financial information. Research implications or Originality - The correction disclosure of business reports is a very important issue in terms of accounting information accuracy and reliability. The results of this study will provide policy implications for correction disclosures and regulations due to an important issue as accounting information. An entity that initially prepares accounting information should advanced in such a way that it provides high quality accounting information and then complements and accepts it by various stakeholders.