Corporate governance remains a fundamental issue for stakeholders in the oversight of organisations, particularly within the context of public sector auditing. Effective governance, coupled with robust auditing practices, is essential for ensuring transparency and accountability in governmental operations. However, in many African nations, corporate governance frameworks have been either inadequately implemented or have failed to achieve their intended outcomes. This study explores the challenges faced by auditees in relation to corporate governance and their subsequent impact on the efficacy of public sector auditing across Africa. Employing a phenomenological research approach, the study utilised an exploratory sequential qualitative design to gather insights from focus group discussions. A total of 33 key affinities and 153 sub-affinities, encompassing critical corporate governance issues, were identified by three focus groups from selected Supreme Audit Institutions (SAIs) in Africa. These identified affinities included audit execution and recommendations, audit acceptance, political interference, ineffective audit committees, inadequate collaboration and communication, and weaknesses in legislative oversight. Among the key themes emerging from the analysis, the auditee corporate governance policy framework was highlighted as a significant factor influencing auditing outcomes. The findings provide a detailed examination of the unique factors affecting the effectiveness of public sector audits in promoting accountability and transparency. The study proposes a comprehensive policy framework based on a resource-based theoretical perspective, designed to enhance the impact of public sector auditing in African nations. This framework is intended to guide executive governments, legislative bodies, SAIs, citizens, and other stakeholders towards improving governance and securing better public sector outcomes. The empirical evidence provided herein offers valuable insights into the complex interplay between corporate governance and auditing effectiveness, contributing to the ongoing discourse on accountability and transparency in the African public sector.
This study investigates the industry-wide and regional spillover effects of penalties for noncompliance with information disclosure regulations, focusing on publicly listed firms in China. The analysis is based on panel data from Chinese listed companies, revealing that penalties imposed by the China Securities Regulatory Commission (CSRC) on noncompliant firms lead to significant improvements in the quality of information disclosure by other firms in the same industry or geographical region that were not subject to penalties. These spillover effects are found to be contingent on factors such as the competitive dynamics within the industry and the level of regional economic development. Furthermore, the results indicate that the impact of penalties on neighbouring firms is amplified when the publication cycle for penalty announcements is shorter, though the effect diminishes over time as the information becomes less salient. These findings contribute to the understanding of regulatory enforcement mechanisms and their broader influence on corporate transparency, highlighting the role of both industry and regional contexts in shaping compliance behaviour.
Open Access
Journal Metrics
Journal Overview
Associated Journals