Showing papers by "Collins G. Ntim published in 2014"

The Role and Effectiveness of Audit Committees in UK Higher Education Institutions

Abstract: The aim of the project was to investigate corporate governance practices in UK higher education institutions (HEIs) Specifically, the project sought to examine the role and effectiveness of the audit committee in supporting what was initially conceptualised as financial leadership’ in HEIs What makes a board, and its various committees, an effective mechanism is a key and recurring question, which has been raised in academic, practitioner and policymaking circles and is relevant to companies, public bodies, charities and universities alike The case of the audit committee is often highlighted in practice and in the literature, since it is a central plank of any corporate governance structure, normally tasked with overseeing the financial, control, auditing and risk management aspects of the organisation In the light of the rapidly changing and uncertain financial environment faced by UK HEIs, the role of the audit committee is critical in monitoring, advising and shaping the HEI’s direction, and its work and structure have been the subject of detailed guidance by the Committee of University Chairs (CUC), supplemented by developmental resources from the Leadership Foundation for Higher Education and accountancy firms However, what has been missing so far is a comprehensive cross-sectional analysis of the audit committee’s actual structure and characteristics in UK HEIs and the impact this has on organisational outcomes, and a deeper understanding of the role and activities of the audit committee from the field In terms of the practical direction adopted during the research and how the results are presented in the final report, this has cascaded into three sub-objectives that we have fully achieved; ie, to: (a) investigate the characteristics of the audit committee in UK HEIs (b) investigate HEIs’ level of public accountability and the likely impact of the audit committee on accountability and other organisational outcomes (c) explore the role and effectiveness of the audit committee in detail

Internal governance structures and voluntary public accountability disclosures by UK higher education institutions

Abstract: The international higher educational institutions (HEIs) environment has experienced rapid changes and/or reforms over the past decades. Specifically, the HE sector has been characterised by increasing student numbers, declining government funding, but tighter external regulation, increasing competition, and greater accountability through increased ‘managerialism’, ‘commoditisation’, ‘commercialisation’ and ‘corporatisation’ of academics and HEIs. These changes have brought to the core the issue of sound financial management through good internal governance, increased public accountability and transparency, and stronger performance within HEIs. This paper, therefore, investigates why and how HEIs internal governance structures might influence their voluntary public accountability and transparency disclosures (PADs). Using a 2012 cross-sectional sample of 130 UK HEIs, we find that audit committee quality, governing board diversity, independent or lay governors, and the presence of a corporate governance committee impact positively in PADs. By contrast, we do not find any evidence that audit firm size, governing board size, and the frequency of governing board meetings have any significant effect on PADs. The central tenor of our findings remains unchanged across a number of econometric models that sufficiently account for different kinds of endogeneities, as well as alternative internal governance mechanisms and PADs measures. Our results are generally in line with the predictions of our multi-theoretical framework that incorporates insights from agency, institutional, legitimacy, public accountability/stewardship, resources dependence, and stakeholder theories.