Audit Committee Characteristics and Accounting Conservatism
This study examines the association between four pivotal audit committee characteristics and accounting conservatism. Using a sample of 7,668 Australian firm-year observations from 2004 to 2012, a positive association is found between accounting conservatism and: (a) a director with financial expert...
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| Format: | Journal Article |
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Wiley-Blackwell
2015
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| Online Access: | http://hdl.handle.net/20.500.11937/25746 |
| _version_ | 1848751793544101888 |
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| author | Sultana, Nigar |
| author_facet | Sultana, Nigar |
| author_sort | Sultana, Nigar |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This study examines the association between four pivotal audit committee characteristics and accounting conservatism. Using a sample of 7,668 Australian firm-year observations from 2004 to 2012, a positive association is found between accounting conservatism and: (a) a director with financial expertise on the audit committee; (b) an experienced director on the audit committee; and (c) frequency of audit committee meetings. Within an agency theoretical framework, results suggest that audit committees act as effective monitoring mechanisms in restricting management’s opportunistic behaviour and overstatement of earnings. Results also suggest that regulators (and other stakeholders) should pay greater attention to the financial expertise, experience of members and meeting frequency of the audit committee when judging the committee’s value. |
| first_indexed | 2025-11-14T07:58:22Z |
| format | Journal Article |
| id | curtin-20.500.11937-25746 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T07:58:22Z |
| publishDate | 2015 |
| publisher | Wiley-Blackwell |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-257462017-09-13T15:18:40Z Audit Committee Characteristics and Accounting Conservatism Sultana, Nigar Corporate governance agency theory conservatism audit committee This study examines the association between four pivotal audit committee characteristics and accounting conservatism. Using a sample of 7,668 Australian firm-year observations from 2004 to 2012, a positive association is found between accounting conservatism and: (a) a director with financial expertise on the audit committee; (b) an experienced director on the audit committee; and (c) frequency of audit committee meetings. Within an agency theoretical framework, results suggest that audit committees act as effective monitoring mechanisms in restricting management’s opportunistic behaviour and overstatement of earnings. Results also suggest that regulators (and other stakeholders) should pay greater attention to the financial expertise, experience of members and meeting frequency of the audit committee when judging the committee’s value. 2015 Journal Article http://hdl.handle.net/20.500.11937/25746 10.1111/ijau.12034 Wiley-Blackwell restricted |
| spellingShingle | Corporate governance agency theory conservatism audit committee Sultana, Nigar Audit Committee Characteristics and Accounting Conservatism |
| title | Audit Committee Characteristics and Accounting Conservatism |
| title_full | Audit Committee Characteristics and Accounting Conservatism |
| title_fullStr | Audit Committee Characteristics and Accounting Conservatism |
| title_full_unstemmed | Audit Committee Characteristics and Accounting Conservatism |
| title_short | Audit Committee Characteristics and Accounting Conservatism |
| title_sort | audit committee characteristics and accounting conservatism |
| topic | Corporate governance agency theory conservatism audit committee |
| url | http://hdl.handle.net/20.500.11937/25746 |