/library/oar/handle/123456789/693 Sun, 28 Dec 2025 08:10:57 GMT 2025-12-28T08:10:57Z /library/oar/handle/123456789/140941 Title: Materiality thresholds in Maltese external auditing : an analysis Authors: Baldacchino, Peter J.; Pisani, Matthew; Ellul, Lauren; Tabone, Norbert; Grima, Simon Abstract: The objectives of this study are to (i) ascertain the major quantitative and qualitative factors influencing the determination of materiality thresholds in the private sector external audits performed by large and medium-sized Maltese audit firms, (ii) assess the effectiveness of ISA 320 in the determination of such materiality thresholds, as well as the impact of introducing more prescriptive guidelines within the Standard, and (iii) assess the current level of professional judgement and its effectiveness in determining materiality thresholds, as well as ascertain the typical challenges involved in exercising such judgement. A predominantly qualitative mixed-methods approach was adopted. Semi-structured interviews were carried out with twelve audit partners from large and medium-sized Maltese audit firms. The findings indicated that the major quantitative factors influencing overall materiality were 5–10% of profit before tax and 1–3% of total revenue. The major quantitative factor influencing performance materiality and the clearly trivial threshold was 75% and 5% of overall materiality, respectively. Additionally, the major qualitative factors influencing materiality thresholds were fraud and litigation risk, quality of client internal controls, auditor critical thinking skills, client complexity, the client’s sector and a change in auditor. Furthermore, the findings indicated that ISA 320 provided sufficient guidance for determining materiality thresholds. Moreover, the most cited benefit of introducing more prescriptive guidelines within the Standard was greater consistency among auditors, while the most cited drawback was the limitation on professional judgement. The findings also revealed that professional judgement was crucial and generally effective in determining materiality thresholds. However, auditors typically faced a few challenges when exercising such judgement, of which time pressure and the setting of appropriate thresholds are particularly significant. Wed, 01 Jan 2025 00:00:00 GMT /library/oar/handle/123456789/140941 2025-01-01T00:00:00Z /library/oar/handle/123456789/140810 Title: Index linked bonds and their applicability in Malta Abstract: [...] Objectives: The objective of this dissertation is to study the nature of ILBs, their main advantages and disadvantages and to determine their suitability in Malta. The key research questions that this dissertation aims to solve are: 1. How do ILBs function? 2. What are the advantages and disadvantages of ILBs for the issuer, investor and policymaker? 3. How reliable is the Retail Price Index (RPI) as a benchmark for ILBs? 4. How far are ILBs applicable to Malta? Limitations: This dissertation is based on information available up to 31st December 1997. An outline of the calculation of coupon payments and the redemption payment of Capital Indexed Bonds will be given, but this study will be limited as to the detail on the calculation of other types of ILBs. The detail as to the calculation of the inflation expectations and all the related formulae will not be dealt with in this dissertation. The taxation implications of these investments are also beyond the scope of this study. Dissertation overview: as shown in figure 1.1 on page 6, the study is structured as follows. The review of literature is divided into two chapters: - Chapter 2 deals with nature, characteristics and mechanism of ILBs. It also highlights the differences between conventional bonds and ILBs. - Chapter 3 poses the advantages and disadvantages of ILBs to the issuer, investors and policymakers. The methodology used for the research will be dealt with in Chapter 4. The research process and the structure of the various interviews held will be explained. Chapter 5 analyses the inflationary situation in Malta, the mechanism and composition of the RPI, its main limitations and their effect on indexed bonds. Chapter 6 discussed and applies the findings obtained from the interviews held. At the outset the chapter delineates the major investment preferences of the local investors and the possible reasons for their choices. The chapter then proceeds to view and discuss the opinions of the interviewees about the various questions that were asked during the Institutional Survey. Chapter 7 offers a summary and some concluding remarks including a number of recommendations. Description: B.ACCTY.(HONS) Thu, 01 Jan 1998 00:00:00 GMT /library/oar/handle/123456789/140810 1998-01-01T00:00:00Z /library/oar/handle/123456789/140709 Title: The role of CFOs on the boards of Maltese listed entities : implications for corporate governance Authors: Baldacchino, Peter J.; Tanti, Owen; Ellul, Lauren; Tabone, Norbert; Grima, Simon Abstract: This paper examines the role of Chief Financial Officers (CFOs) on the boards of Maltese Listed Entities (MLEs). The paper explores how the corporate boards of MLEs prefer to involve CFOs and evaluates the views of board members about the benefits and drawbacks of CFO participation. The study analyzes the broader implications for corporate governance, including the perspectives of directors, managers, and shareholders. Methodology: We adopted a mixed-method approach using semi-structured interviews with 10 board members (BMs) and 16 CFOs from MLEs. In addition, we collected written responses from three BMs and two CFOs, resulting in a total of 31 participants. Results: MLEs tend to favor CFOs as regular board attendees rather than full board members, aiming to ensure robust financial oversight while preserving the independence of managerial oversight. Factors such as the financial literacy of the board and the complexity of the business influence this preference. Boards sometimes appoint CFOs following cooling-off periods, and participants expressed concerns about potential conflicts between current and former CFOs, as well as the challenge of balancing board duties with operational responsibilities. Nevertheless, participants viewed CFO board participation positively. Participants believe CFOs contribute to strategic alignment, deeper managerial insight, and enhanced shareholder confidence when they participate on boards. While small shareholders expressed minimal concern, institutional investors placed a stronger value on CFO involvement. Originality / value: This study fills a gap in the corporate governance literature by examining the specific contributions and oversight roles of CFOs within the boards of Multinational Listed Entities (MLEs), an area that has received limited academic attention. Practical implications: The findings guide MLEs and other listed firms in designing CFO involvement in board processes and balancing effective financial oversight with good governance practices. Theoretical implications: This study contributes to corporate governance theory by illustrating how CFOs play a distinctive role in board structures, particularly in contexts where companies must balance financial expertise with administrative independence. It deepens understanding of how CFO involvement shapes decision-making dynamics, strategic oversight, and the evolution of governance models in smaller capital markets. Wed, 01 Jan 2025 00:00:00 GMT /library/oar/handle/123456789/140709 2025-01-01T00:00:00Z /library/oar/handle/123456789/140593 Title: An empirical comparative analysis of the gold market dynamics of the Indian and U.S. commodity markets Authors: Sharma, Swaty; Gupta, Munish; Grima, Simon; Sood, Kiran Abstract: This study examines the dynamic relationship between the gold markets of India and the United States from 2005 to 2025. Recognising gold’s role as a hedge and safe-haven during market uncertainty, we employ the Autoregressive Distributed Lag (ARDL) model to assess long-term co-integration and apply the Toda–Yamamoto causality test to evaluate directional influences. Additionally, the Generalised Autoregressive Conditional Heteroskedasticity (GARCH) (1, 1) model is applied to examine volatility spillovers. Results reveal no long-term co-integration between the two markets, suggesting they function independently over time. However, unidirectional causality is observed from the U.S. to the Indian gold market, and the GARCH model confirms bidirectional volatility transmission, indicating interconnected short-run dynamics. These findings imply that gold market shocks in one country may affect short-term pricing in the other, but not long-term trends. From a portfolio diversification and risk management perspective, investors may benefit from allocating assets across both markets. This study contributes a novel empirical framework by integrating ARDL, Toda–Yamamoto Granger causality, and GARCH(1, 1) models over a two-decade period (2005–2025), incorporating post-COVID market dynamics. The combination of these methods, applied to both an emerging (India) and developed (U.S.) economy, provides a comprehensive understanding of gold market interdependence. In doing this, the paper offers valuable insights into causality, volatility transmission, and diversification potential. The econometric rigour of the study is enhanced through residual diagnostic tests, including tests of normality, autocorrelation, and other heteroscedasticity tests, as well as VAR stability tests. These ensure strong inference and model validity; more specifically, they are pertinent to the analysis of financial time series. Wed, 01 Jan 2025 00:00:00 GMT /library/oar/handle/123456789/140593 2025-01-01T00:00:00Z