Pallab Kumar Biswas, Swapan Kumar Bala and Priyoti Mandal
This paper aims to examine the relationship between audit committee (AC) independence and AC meeting frequency in an emerging country where the presence of majority independent…
Abstract
Purpose
This paper aims to examine the relationship between audit committee (AC) independence and AC meeting frequency in an emerging country where the presence of majority independent directors (IDs) on AC is a voluntary requirement.
Design/methodology/approach
This study uses the agency theory framework to examine the relationship between AC independence and AC meeting frequency. The empirical evidence is provided by a unique hand-collected sample of Bangladeshi listed companies. Multivariate regression analysis is used to test the relationship. Robustness checks provide further empirical support.
Findings
This paper finds a positive and significant relationship between AC independence and AC meeting frequency. This is consistent with the notion that IDs are better monitors and demand more frequent AC meetings to protect their reputations. However, having at least two IDs does not significantly affect the number of AC meetings in family firms. This evidence questions director independence in family firms.
Research limitations/implications
This is a single-country study. Therefore, the findings may not apply to other countries with different institutional settings.
Originality/value
Unlike most prior studies, this study is based on a voluntary institutional setting where the companies are not required to have ACs comprising the majority of IDs. In such a setting, the authors find a significantly positive association between AC independence and meeting frequency compared to either a negative or insignificant relationship in the prior literature.
Details
Keywords
Dilip Kumar Sen and Swapan Kumar Bala
The present paper is a brief study on the modus operandi of the existing income tax audit in Bangladesh. This study centres around: meaning of tax audit; need for tax audit;…
Abstract
The present paper is a brief study on the modus operandi of the existing income tax audit in Bangladesh. This study centres around: meaning of tax audit; need for tax audit; certain conceptual issues of tax audit; existing scenario of tax audit in Bangladesh, focusing on tax system, tax audit practice, tax audit ambit, tax auditor, tax audit report, existing extent of assessment under tax audit net; and then draws a concluding line with a few recommendations. The paper reflects that the present extent of tax audit practice of Bangladesh is extremely negligible. This paper’s policy prescriptions, if followed, will hopefully provide a great boost in expanding tax audit net, which is much needed for improvement of the internal resource mobilisation in the country.