Business Commons^™

Determinants Of Voluntary Board Remuneration Committee Formation And Composition, Pamela Kent, Kim Kercher, James Routledge

James Routledge

This study provides evidence on factors that determine the voluntary adoption of corporate governance recommendations regarding remuneration committees in 2008. The findings indicate that remuneration committee existence is significantly associated with insider share ownership, institutional shareholding and change in CEO. Composition of the committee is significantly explained by independent directors and complexity measured by geographical segments (marginally). Other variables controlled for are growth opportunities, free cash flow, asset turnover, size, governance quality, debt levels, age and the presence of a big four auditor.

Redefining Internal Audit Performance: Impact On Corporate Governance, Razimah Abdullah

Razimah Abdullah

One of the preventive measures to situations akin to world financial crises increasingly forwarded is effective internal audit function (IAF) (e.g., Imhoff, 2003; Mohamad & Muhamad Sori, 2011). Internal audit, a component of corporate governance, continues to evolve due to changes in business strategies and requirements placed on it by legislators. The roles of internal auditors and audit committees (ACs), the key personnel in IAFs, are changing to a more value-added approach as business strategies move towards corporate sustainability and organisational excellence. Suggestions forwarded to improve the performance or determining the quality of IAF include effective involvement of ACs in …

Determinants Of Voluntary Board Remuneration Committee Formation And Composition, Pamela Kent, Kim Kercher, James Routledge

Pamela Kent

This study provides evidence on factors that determine the voluntary adoption of corporate governance recommendations regarding remuneration committees in 2008. The findings indicate that remuneration committee existence is significantly associated with insider share ownership, institutional shareholding and change in CEO. Composition of the committee is significantly explained by independent directors and complexity measured by geographical segments (marginally). Other variables controlled for are growth opportunities, free cash flow, asset turnover, size, governance quality, debt levels, age and the presence of a big four auditor.

Corporate Governance And Access To Interest Bearing Debt, Husam Aldamen, Keith Duncan

Keith Duncan

Purpose – The purpose of this paper is to extend the growing body of literature on the impact of corporate governance on debt contracting by examining if better governance is associated with access to interest bearing debt. The paper aims to explore whether no-debt companies have governance structures that are qualitatively different to debt companies within a market with a distinct corporate finance structure, such as Australia.

Design/methodology/approach – The analysis is portioned into two stages. The first stage focuses on univariate analysis which includes descriptive statistics and analysis of variance (ANOVA). The second stage introduces multivariate analysis, in the …

Creating Quality Precision Instrument: Vfma_35 For The Conduct Of Value For Money Audit Using The Rasch Model, Razimah Abdullah, Mohd Saidfudin Masodi

Razimah Abdullah

Just like an examination paper, the reliability of a survey questionnaire as a measuring instrument is crucial if we want a good and valid instrument. The length of test and rating scale or distractor operational definition are among the determinants that will affect the validity of the instrument. However, how do we assure that we are measuring what is to be measured? This paper investigates the construct validity of an instrument named, VFMA_35 by applying the Rasch analysis. The precision of the instrument is established from the item measurement standard error (SE). Analysis using Rasch creates a functional precise instrument …

"She Says, He Says”: Women’S And Men’S Views Of The Composition Of Boards, Alison Sheridan, Gina Milgate

Gina C Milgate

While women have continued to increase their representation in the paid workforce, their representation on corporate boards in Australia remains very low. In this paper, the views of men and women board members of publicly-listed companies in Australia concerning the adequacy of the composition of boards and the factors contributing to women’s low representation are explored and contrasted. It seems that these “successful” men and women have significantly different views on the benefits of homogeneity or diversity of board membership. While the men believe the current composition is generally adequate, the women are concerned about the lack of diversity of …