Factors of audit committee independence: An empirical study from an emerging economy

References

• Abbott, L. J., Park, Y., & Parker, S. (2000). The effects of audit committee activity and independence on corporate fraud. Managerial Finance, 26(11), 55–23. https://doi.org/https://doi.org/10.1108/03074350010766990
   Google Scholar
• Abbott, L. J., Parker, S., & Peters, G. F. (2004). Audit Committee Characteristics and Restatements. AUDITING: A Journal of Practice & Theory, 23(1), 69–87. https://doi.org/https://doi.org/10.2308/aud.2004.23.1.69
   Google Scholar
• Adhikary, B. K., & Mitra, R. K. (2016). Determinants of audit committee independence in the financial sector of Bangladesh. Applied Finance and Accounting, 2(2), 46. https://doi.org/https://doi.org/10.11114/afa.v2i2.1591
   Google Scholar
• Agrawal, A., & Knoeber, C. R. (1996). Firm performance and mechanisms to control agency problems between managers and shareholders. The Journal of Financial and Quantitative Analysis, 31(3), 377. https://doi.org/https://doi.org/10.2307/2331397
   Google Scholar
• Akter, S., Ali, M. H., Abedin, M. T., & Hossain, B. (2020). Directors’ remuneration and performance: Evidence from the textile sector of Bangladesh. The Journal of Asian Finance, Economics and Business, 7(6), 265–275. https://doi.org/https://doi.org/10.13106/jafeb.2020.vol7.no6.265
   Google Scholar
• Al-Dhamari, R., Almagdoub, A., & Al-Gamrh, B. (2018). Are audit committee characteristics important to the internal audit budget in Malaysian firms? Contaduria Y Administracion, 63(2), 1–23. https://doi.org/https://doi.org/10.22201/fca.24488410e.2018.1480
   Google Scholar
• Al-Najjar, B. (2011). The determinants of audit committee independence and activity: Evidence from the UK. International Journal of Auditing, 15(2), 191–203. https://doi.org/https://doi.org/10.1111/j.1099-1123.2011.00429.x
   Google Scholar
• Al-Najjar, B. (2013). The financial determinants of corporate cash holdings: Evidence from some emerging markets. International Business Review, 22(1), 77–88. https://doi.org/https://doi.org/10.1016/j.ibusrev.2012.02.004
   Google Scholar
• Al-Sayani, Y. M., Mohamad Nor, M. N., Amran, N. A., & Ntim, C. G. (2020). The influence of audit committee characteristics on impression management in chairman statement: Evidence from Malaysia. Cogent Business & Management, 7(1), 1. https://doi.org/https://doi.org/10.1080/23311975.2020.1774250
   Google Scholar
• Ariff, A. M., Ibrahim, M. K., & Othman, R. (2007). Determinants of firm level governance: Malaysian evidence. Corporate Governance: The International Journal of Business in Society, 7(5), 562–573. https://doi.org/https://doi.org/10.1108/14720700710827158
   Google Scholar
• Asogwa, C. I., Ofoegbu, G. N., Nnam, J. I., Chukwunwike, O. D., & Ntim, C. G. (2019). Effect of corporate governance board leadership models and attributes on earnings quality of quoted nigerian companies. Cogent Business & Management, 6(1), 1. https://doi.org/https://doi.org/10.1080/23311975.2019.1683124
   Google Scholar
• Bala, S. K. (2018). Corporate governance code 2018 in Bangladesh: Reforms and Revisions. Monthly Review, 24–35. https://www.researchgate.net/publication/326409968
   Google Scholar
• Be´dard, J., Chtourou, S. M., & Courteau, L. (2004). The effect of audit committee expertise, independence, and activity on aggressive earnings management. AUDITING: A Journal of Practice & Theory, 23(2), 13–35. https://doi.org/https://doi.org/10.2308/aud.2004.23.2.13
   Google Scholar
• Beasley, M. S. (1996). An empirical analysis of the relation between the board of director composition and financial statement fraud. Accounting Review, 71(4), 443–465. https://doi.org/https://doi.org/10.2469/dig.v27.n2.79
   Google Scholar
• Beasley, M. S., & Salterio, S. E. (2001). The relationship between board characteristics and voluntary improvements in audit committee composition and experience. Contemporary Accounting Research, 18(4), 539–570. https://doi.org/https://doi.org/10.1506/RM1J-A0YM-3VMV-TAMV
   Google Scholar
• Bhuiyan, M., Hossain, D., & Biswas, P. (2008). Audit committee in banks: Current regulatory framework and disclosure practices in Bangladesh. The Cost and Management, 35(2), 5–18. https://www.academia.edu/5024330/Audit_Committee_in_Banks_Current_Regulatory_Framework_and_Disclosure_Practices_in_Bangladesh
   Google Scholar
• BSEC. (2012). Corporate Governance Code. Dhaka Stock Exchange. http://www.drewnapier.com/DrewASPX/media/assets/Publications/SID-Directors-Bulletin-Iss-4-2012_A-Calling-for-more-Independent-Directors-by-FAS_LSN.pdf
   Google Scholar
• BSEC. (2018). Corporate governance code. Dhaka Stock Exchange. https://www.dsebd.org/pdf/Corporate_Governance_Code_10.06.2018.pdf
   Google Scholar
• Carcello, J. V., & Neal, T. L. (2000). Audit committee composition and auditor reporting. The Accounting Review, 75(4), 453–467. https://doi.org/https://doi.org/10.2308/accr.2000.75.4.453
   Google Scholar
• Collier, P. (1993). Factors affecting the formation of audit committees in major UK listed companies. Accounting and Business Research, 23(sup1), 421–430. https://doi.org/https://doi.org/10.1080/00014788.1993.9729909
   Google Scholar
• Cotter, J., & Silvester, M. (2003). Board and monitoring committee independence. Abacus, 39(2), 211–232. https://doi.org/https://doi.org/10.1111/1467-6281.00127
   Google Scholar
• Daily, C. M., & Dalton, D. R. (1994). Corporate governance and the bankrupt firm: An empirical assessment. Strategic Management Journal, 15(8), 643–654. https://doi.org/https://doi.org/10.1002/smj.4250150806
   Google Scholar
• Deli, D. N., & Gillan, S. L. (2000). On the demand for independent and active audit committees. Journal of Corporate Finance, 6(4), 427–445. https://doi.org/https://doi.org/10.1016/S0929-1199(00)00016-X
   Google Scholar
• Demsetz, H., & Lehn, K. (1985). The structure of corporate ownership: causes and consequences. Journal of Political Economy, 93(6), 1155–1177. https://doi.org/https://doi.org/10.1086/261354
   Google Scholar
• Eichenseher, J. W., & Shields, D. (1985). Corporate director liability and monitoring preferences. Journal of Accounting and Public Policy, 4(1), 13–31. https://doi.org/https://doi.org/10.1016/0278-4254(85)90010-9
   Google Scholar
• Eisenhardt, K. M. (1989). Agency theory: An assessment and review. Academy of Management Review, 14(1), 57–74. https://doi.org/https://doi.org/10.5465/amr.1989.4279003
   Google Scholar
• Fama, E. F., & Jensen, M. C. (1983a). Agency problems and residual claims. The Journal of Law & Economics, 26(2), 327–349. https://doi.org/https://doi.org/10.1086/467038
   Google Scholar
• Fama, E. F., & Jensen, M. C. (1983b). Separation of ownership and control. The Journal of Law & Economics, 26(2), 301–325. https://doi.org/https://doi.org/10.1086/467037
   Google Scholar
• Ferdous, C. S. (2018). Corporate governance in Bangladesh: Evidence of compliance. International Business Research, 11(3), 88. https://doi.org/https://doi.org/10.5539/ibr.v11n3p88
   Google Scholar
• Ferdous, C. S., Mallin, C., & Ow-Yong, K. (2014). Corporate governance in Bangladesh: A comparison with other emerging market countries. Corporate Governance in Emerging Markets. 395–420. https://doi.org/https://doi.org/10.1007/978-3-642-44955-0_16.
   Google Scholar
• García-Sánchez, I.-M., Frias-Aceituno, J. V., & Garcia-Rubio, R. (2012). Determining factors of audit committee attributes: Evidence from Spain. International Journal of Auditing, 16(2), 184–213. https://doi.org/https://doi.org/10.1111/j.1099-1123.2012.00451.x
   Google Scholar
• Goodstein, J., Gautam, K., & Boeker, W. (1994). The effects of board size and diversity on strategic change. Strategic Management Journal, 15(3), 241–250. https://doi.org/https://doi.org/10.1002/smj.4250150305
   Google Scholar
• Guest, P. M. (2009). The impact of board size on firm performance: Evidence from the UK. The European Journal of Finance, 15(4), 385–404. https://doi.org/https://doi.org/10.1080/13518470802466121
   Google Scholar
• Gujarati, D. N. (2003). Basic Econometrics (4th ed.) ed.). McGraw Hill.
   Google Scholar
• Haque, F., Arun, T. G., & Kirkpatrick, C. (2011). Corporate governance and capital structure in developing countries: A case study of Bangladesh. Applied Economics, 43(6), 673–681. https://doi.org/https://doi.org/10.1080/00036840802599909
   Google Scholar
• Hasan, M. T., & Rahman, A. A. (2020). The role of corporate governance on the relationship between IFRS adoption and earnings management: Evidence from Bangladesh. International Journal of Financial Research, 11(4), 329. https://doi.org/https://doi.org/10.5430/ijfr.v11n4p329
   Google Scholar
• Hermalin, B. E., & Weisbach, M. S. (1988). The determinants of board composition. The Rand Journal of Economics, 19(4), 589. https://doi.org/https://doi.org/10.2307/2555459
   Google Scholar
• IFC. (2020). Portrait of Bangladesh ’ s Independent Directors.
   Google Scholar
• Jensen, M. C. (1993). The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems. The Journal of Finance, 48(3), 831–880. https://doi.org/https://doi.org/10.1111/j.1540-6261.1993.tb04022.x
   Google Scholar
• Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/https://doi.org/10.1016/0304-405X(76)90026-X
   Google Scholar
• Jensen, M. C., & Murphy, K. J. (1990). Performance pay and top-management incentives. Journal of Political Economy, 98(2), 225–264. https://doi.org/https://doi.org/10.1086/261677
   Google Scholar
• Joshi, P. L., & Wakil, A. (2004). A study of the audit committees‘ functioning in Bahrain. Managerial Auditing Journal, 19(7), 832–858. https://doi.org/https://doi.org/10.1108/02686900410549394
   Google Scholar
• Karim, M. R., Mitra, R. K., & Khan, I. (2020). Determinants of Board Independence in the banking sector of Bangladesh. Journal of Economics and Business, 3(1), 1. https://doi.org/https://doi.org/10.31014/aior.1992.03.01.178
   Google Scholar
• Klein, A. (1998). Economic determinants of audit committee composition and activity. New York University Center for Law and Business Working Paper, 11–98. https://doi.org/https://doi.org/10.2139/ssrn.164494
   Google Scholar
• Klein, A. (2002a). Audit committee, board of director characteristics, and earnings management. Journal of Accounting and Economics, 33(3), 375–400. https://doi.org/https://doi.org/10.1016/S0165-4101(02)00059-9
   Google Scholar
• Klein, A. (2002b). Economic determinants of audit committee independence. The Accounting Review, 77(2), 435–452. https://doi.org/https://doi.org/10.2308/accr.2002.77.2.435
   Google Scholar
• Kole, S. R. (1995). Measuring managerial equity ownership: A comparison of sources of ownership data. Journal of Corporate Finance, 1(3–4), 413–435. https://doi.org/https://doi.org/10.1016/0929-1199(94)00012-J
   Google Scholar
• Lipton, M., & Lorsch, J. W. (1992). A modest proposal for improved corporate governance: Business source. Business Lawyer, 42(1), 59–78.
   Google Scholar
• Meah, M. R. (2019). The efficiency of corporate governance on capital structure: an empirical study from listed manufacturing firms in Bangladesh. Asian Journal of Accounting and Governance, 11, 13–23. https://ejournal.ukm.my/ajac/article/view/28831/9281
   Google Scholar
• Meah, M. R., & Chaudhory, N. U. (2019). Corporate governance and firm’s profitability: An emerging economy-based investigation. Indian Journal of Corporate Governance, 12(1), 71–93. https://doi.org/https://doi.org/10.1177/0974686219836544
   Google Scholar
• Menon, K., & Williams, J. D. (1994). The use of audit committees for monitoring. Journal of Accounting and Public Policy, 13(2), 121–139. https://doi.org/https://doi.org/10.1016/0278-4254(94)90016-7
   Google Scholar
• Morck, R., Shleifer, A., & Vishny, R. W. (1988). Management ownership and market valuation. Journal of Financial Economics, 20(1-2), 293–315. https://doi.org/https://doi.org/10.1016/0304-405X(88)90048-7
   Google Scholar
• Muktadir-Al-Mukit, D., & Keyamoni, T. J. (2019). Corporate governance and earnings management practices among listed firms: A study on post stock market crisis period in Bangladesh. Journal of Asian Business Strategy, 9(1), 1–9. https://doi.org/https://doi.org/10.18488/journal.1006.2019.91.1.9
   Google Scholar
• Ntim, C. G., Opong, K. K., & Danbolt, J. (2015). Board size, corporate regulations and firm valuation in an emerging market: A simultaneous equation approach. International Review of Applied Economics, 29(2), 194–220. https://doi.org/https://doi.org/10.1080/02692171.2014.983048
   Google Scholar
• O’Reilly, V. M., McDonnell, P. J., Winograd, B. N., Gerson, J. S., & Jaenicke, H. R. (1998). Montgomery auditing (12th ed.) ed.). John Wiley and Sons. https://www.wiley.com/en-us/Montgomery+Auditing+Continuing+Professional+Education%2C+12th+Edition-p–9780471346050
   Google Scholar
• Piot, C. (2004). The existence and independence of audit committees in France. Accounting and Business Research, 34(3), 223–246. https://doi.org/https://doi.org/10.1080/00014788.2004.9729966
   Google Scholar
• Poretti, C., Schatt, A., & Bruynseels, L. (2018). Audit committees’ independence and the information content of earnings announcements in Western Europe. Journal of Accounting Literature, 40, 29–53. https://doi.org/https://doi.org/10.1016/j.acclit.2017.11.002
   Google Scholar
• Raghunandan, K., & Rama, D. V. (2007). Determinants of audit committee diligence. Accounting Horizons, 21(3), 265–279. https://doi.org/https://doi.org/10.2308/acch.2007.21.3.265
   Google Scholar
• Rahman, M. M., Meah, M. R., & Chaudhory, N. U. (2019). The impact of audit characteristics on firm performance: An empirical study from an emerging economy. The Journal of Asian Finance, Economics and Business, 6(1), 59–69. https://doi.org/https://doi.org/10.13106/jafeb.2019.vol6.no1.59
   Google Scholar
• Rainsbury, E. A., Bradbury, M. E., & Cahan, S. F. (2008). Firm characteristics and audit committees complying with ’best practice‘ membership guidelines. Accounting and Business Research, 38(5), 393–408. https://doi.org/https://doi.org/10.1080/00014788.2008.9665773
   Google Scholar
• Rashid, A. (2015). Revisiting agency theory: Evidence of board independence and agency cost from Bangladesh. Journal of Business Ethics, 130(1), 181–198. https://doi.org/https://doi.org/10.1007/s10551-014-2211-y
   Google Scholar
• Rashid, A. (2016). Managerial ownership and agency cost: Evidence from Bangladesh. Journal of Business Ethics, 137(3), 609–621. https://doi.org/https://doi.org/10.1007/s10551-015-2570-z
   Google Scholar
• Rashid, A. (2018). Board independence and firm performance: Evidence from Bangladesh. Future Business Journal, 4(1), 34–49. https://doi.org/https://doi.org/10.1016/j.fbj.2017.11.003
   Google Scholar
• Rashid, M. H. U., Zobair, S. A. M., Chowdhury, M. A. I., & Islam, A. (2020). Corporate governance and banks’ productivity: Evidence from the banking industry in Bangladesh. Business Research, 13(2), 615–637. https://doi.org/https://doi.org/10.1007/s40685-020-00109-x
   Google Scholar
• Razzaque, R. M. R., Ali, M. J., & Mather, P. (2020). Corporate governance reform and family firms: Evidence from an emerging economy. Pacific-Basin Finance Journal, 59:101260. December 2019. https://doi.org/https://doi.org/10.1016/j.pacfin.2019.101260.
   Google Scholar
• Ruiz-Barbadillo, E., Biedma-López, E., & Gómez-Aguilar, N. (2007). Managerial dominance and audit committee independence in Spanish corporate governance. Journal of Management and Governance, 11(4), 311–352. https://doi.org/https://doi.org/10.1007/s10997-007-9035-4
   Google Scholar
• Rwegasira, K. (2000). Corporate governance in emerging capital markets: Whither Africa? Corporate Governance: An International Review, 8(3), 258–267. https://doi.org/https://doi.org/10.1111/1467-8683.00203
   Google Scholar
• Sabia, M., & Goodfellow, J. (2005). Integrity in the spotlight : Audit committees in a high risk world (2nd ed ed.). The Canadian Institute of Chartered Accountants.
   Google Scholar
• Sharma, V., Naiker, V., & Lee, B. (2009). Determinants of audit committee meeting frequency: Evidence from a voluntary governance system. Accounting Horizons, 23(3), 245–263. https://doi.org/https://doi.org/10.2308/acch.2009.23.3.245
   Google Scholar
• Sharma, V. D., & Kuang, C. (2014). Voluntary audit committee characteristics, incentives, and aggressive earnings management: Evidence from New Zealand. International Journal of Auditing, 18(1), 76–89. https://doi.org/https://doi.org/10.1111/ijau.12013
   Google Scholar
• Siddiqui, J. (2010). Development of corporate governance regulations: The case of an emerging economy. Journal of Business Ethics, 91(2), 253–274. https://doi.org/https://doi.org/10.1007/s10551-009-0082-4
   Google Scholar
• Skinner, D. J. (1993). The investment opportunity set and accounting procedure choice. Journal of Accounting and Economics, 16(4), 407–445. https://doi.org/https://doi.org/10.1016/0165-4101(93)90034-D
   Google Scholar
• Smith, C. W., & Watts, R. L. (1992). The investment opportunity set and corporate financing, dividend, and compensation policies. Journal of Financial Economics, 32(3), 263–292. https://doi.org/https://doi.org/10.1016/0304-405X(92)90029-W
   Google Scholar
• Tušeka, B. (2015). The influence of the audit committee on the internal audit operations in the system of corporate governance – Evidence from Croatia. Economic Research-Ekonomska Istraživanja, 28(1), 187–203. https://doi.org/https://doi.org/10.1080/1331677X.2015.1028245
   Google Scholar
• Uddin, S., Choudhury, J., & Brennan, N. M. (2008). Rationality, traditionalism and the state of corporate governance mechanisms. Accounting, Auditing & Accountability Journal, 21(7), 1026–1051. https://doi.org/https://doi.org/10.1108/09513570810907465
   Google Scholar
• Véron, N. (2020). The wirecard debacle calls for a rethink of EU, not just German, financial reporting supervision. Bruegel -Blogs. https://www.bruegel.org/2020/06/the-wirecard-debacle-calls-for-a-rethink-of-eu-not-just-german-financial-reporting-supervision/
   Google Scholar
• Wakaisuka-Isingoma, J., Aduda, J., Wainaina, G., Mwangi, C. I., & Ntim, C. G. (2016). Corporate governance, firm characteristics, external environment and performance of financial institutions in Uganda: A review of literature. Cogent Business and Management, 3(1), 1. https://doi.org/https://doi.org/10.1080/23311975.2016.1261526
   Google Scholar
• Watts, R. L., & Zimmerman, J. L. (1986). Positive accounting theory. Prentice-Hall.
   Google Scholar
• Watts, R. L., & Zimmerman, J. L. (1990). Positive accounting theory: A ten year perspective. The Accounting Review, 65(1), 131–156. http://arikamayanti.lecture.ub.ac.id/files/2014/03/PAT-a-ten-year-perspective.pdf
   Google Scholar
• Yermack, D. (1996). Higher market valuation of companies with a small board of directors. Journal of Financial Economics, 40(2), 185–211. https://doi.org/https://doi.org/10.1016/0304-405X(95)00844-5
   Google Scholar
• Zahra, S. A., & Pearce, J. A. (1989). Boards of directors and corporate financial performance: A review and integrative model. Journal of Management, 15(2), 291–334. https://doi.org/https://doi.org/10.1177/014920638901500208
   Google Scholar
• Zeranski, S., & Sancak, E. (2020). Does the ‘wirecard AG‘ case address fintech crises? SSRN Electronic Journal, 1-42. https://doi.org/https://doi.org/10.2139/ssrn.3666939
   Google Scholar