The Audit Committee is a very important part in the enterprise, its main role is on behalf of the Board of Directors to review, monitor and evaluate the cotnpany＇ s internal control. Playing the role of the audit com...The Audit Committee is a very important part in the enterprise, its main role is on behalf of the Board of Directors to review, monitor and evaluate the cotnpany＇ s internal control. Playing the role of the audit committee can help prevent the economic crisis because of poor management, prevent the phenomenon of corporate embezzlement and accounting fraud. It is an important role in internal control. The thesis begins with an introduction to the Audit Committee, and analyzes the characteristics of Audit Committee and effectiveness of internal controls.展开更多
Prior researches focus mainly on the relationship between governance structure and earnings quality. Unlike the previous researches, this study attempts to empirically examine the role of surplus free cash flow （SFCF...Prior researches focus mainly on the relationship between governance structure and earnings quality. Unlike the previous researches, this study attempts to empirically examine the role of surplus free cash flow （SFCF） as a moderator in the relationship with the new requirements of Malaysian code on corporate governance （MCCG）. By using the estimated generalized least square （EGLS） upon a sample of Malaysian firms, the results show that firms with an independent chairman experience persistent earnings numbers. The results also demonstrate that the current earnings of finns with small boards and independent audit committee members are more likely to persist in the future, when SFCF is high. However, in contradiction to the authors＇ expectation is the significant, but negative and interactive effect of current earnings and audit committee competence on earnings persistence. The findings, though disappointing, suggest investors to consider both the governance structure and free cash flow （FCF） agency problem when evaluating the sustainability of firms＇ earnings. They also call for more independent directors, effective meetings, and more competent audit committee members.展开更多
文摘The Audit Committee is a very important part in the enterprise, its main role is on behalf of the Board of Directors to review, monitor and evaluate the cotnpany＇ s internal control. Playing the role of the audit committee can help prevent the economic crisis because of poor management, prevent the phenomenon of corporate embezzlement and accounting fraud. It is an important role in internal control. The thesis begins with an introduction to the Audit Committee, and analyzes the characteristics of Audit Committee and effectiveness of internal controls.
文摘Prior researches focus mainly on the relationship between governance structure and earnings quality. Unlike the previous researches, this study attempts to empirically examine the role of surplus free cash flow （SFCF） as a moderator in the relationship with the new requirements of Malaysian code on corporate governance （MCCG）. By using the estimated generalized least square （EGLS） upon a sample of Malaysian firms, the results show that firms with an independent chairman experience persistent earnings numbers. The results also demonstrate that the current earnings of finns with small boards and independent audit committee members are more likely to persist in the future, when SFCF is high. However, in contradiction to the authors＇ expectation is the significant, but negative and interactive effect of current earnings and audit committee competence on earnings persistence. The findings, though disappointing, suggest investors to consider both the governance structure and free cash flow （FCF） agency problem when evaluating the sustainability of firms＇ earnings. They also call for more independent directors, effective meetings, and more competent audit committee members.
