Open AccessThe role of the external auditor in corporate governance: The case of companies listed in the NYSE Euronext Lisbon
Author(s) -
José Manuel Bernardo Vaz Ferreira
Publication year - 2019
Publication title -
risk governance and control: financial markets and institutions
Language(s) - English
Resource type - Journals
eISSN - 2077-4303
pISSN - 2077-429X
DOI - 10.22495/rgcv8i4p5
Subject(s) - accounting , corporate governance , business , commission , audit , transparency (behavior) , external auditor , multinomial logistic regression , agency (philosophy) , certification , audit committee , security market , finance , internal audit , economics , political science , management , philosophy , epistemology , machine learning , computer science , law
This study investigates the effects of the presence of the external auditor on corporate governance in Portugal, in the way listed companies are managed, based on the verification of compliance with the corporate governance regulations of the Securities Market Commission, as well as the transparency of information and the reduction of agency problems, fraud and economic crimes. By comparing government reports of companies listed on NYSE Euronext Lisbon, during several periods and with surveys conducted in the 1st half of 2013 in Portugal to the external auditors responsible for the majority of the legal certification of accounts of companies during 2007 to 2011, a significant direct relationship in the fulfillment of the recommendations of corporate governance and its verification by the external auditor is concluded. Based on multiple regression and multinomial logistic models, it is concluded that a greater involvement of the ROC in complying with corporate governance recommendations, allows for greater transparency of information and a reduction of agency problems, fraud and economic crimes