Earnings conservatism and audit committee financial expertise
This study examines the association between earnings conservatism and four different measures of audit committee financial expertise. Statistical tests are based on 494 firm-year observations drawn from Australian publicly listed firms between January 1 2004 and December 31 2008. Consistent with exp...
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| Format: | Conference Paper |
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Wiley-Blackwell Publishing Asia
2012
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| Online Access: | http://afaanz.org/openconf/2012/openconf.php http://hdl.handle.net/20.500.11937/27298 |
| _version_ | 1848752224586432512 |
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| author | Sultana, Nigar Van der Zahn, J-L.W. |
| author2 | Steven Cahan |
| author_facet | Steven Cahan Sultana, Nigar Van der Zahn, J-L.W. |
| author_sort | Sultana, Nigar |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This study examines the association between earnings conservatism and four different measures of audit committee financial expertise. Statistical tests are based on 494 firm-year observations drawn from Australian publicly listed firms between January 1 2004 and December 31 2008. Consistent with expectations, tests find a statistically significant association between earnings conservatism and a) overall financial expertise, b) accounting financial expertise and c) independent financial expertise. However, only a weak association is found between earnings conservatism and audit committee non-accounting financial expertise. Overall, results infer that audit committee financial expertise is a key determinant of the asymmetrical timeliness of loss recognition (both via stock returns and accruals). Findings provide valuable insights and greater understanding to various special interest groups (e.g., corporate governance reformists, regulators, scholars), of the individual dynamics between audit committee financial expertise and earnings conservatism contributing, therefore, to the literature on the importance of audit committee financial expertise in improving financial reporting quality. |
| first_indexed | 2025-11-14T08:05:13Z |
| format | Conference Paper |
| id | curtin-20.500.11937-27298 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T08:05:13Z |
| publishDate | 2012 |
| publisher | Wiley-Blackwell Publishing Asia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-272982017-01-30T12:58:09Z Earnings conservatism and audit committee financial expertise Sultana, Nigar Van der Zahn, J-L.W. Steven Cahan This study examines the association between earnings conservatism and four different measures of audit committee financial expertise. Statistical tests are based on 494 firm-year observations drawn from Australian publicly listed firms between January 1 2004 and December 31 2008. Consistent with expectations, tests find a statistically significant association between earnings conservatism and a) overall financial expertise, b) accounting financial expertise and c) independent financial expertise. However, only a weak association is found between earnings conservatism and audit committee non-accounting financial expertise. Overall, results infer that audit committee financial expertise is a key determinant of the asymmetrical timeliness of loss recognition (both via stock returns and accruals). Findings provide valuable insights and greater understanding to various special interest groups (e.g., corporate governance reformists, regulators, scholars), of the individual dynamics between audit committee financial expertise and earnings conservatism contributing, therefore, to the literature on the importance of audit committee financial expertise in improving financial reporting quality. 2012 Conference Paper http://hdl.handle.net/20.500.11937/27298 http://afaanz.org/openconf/2012/openconf.php Wiley-Blackwell Publishing Asia restricted |
| spellingShingle | Sultana, Nigar Van der Zahn, J-L.W. Earnings conservatism and audit committee financial expertise |
| title | Earnings conservatism and audit committee financial expertise |
| title_full | Earnings conservatism and audit committee financial expertise |
| title_fullStr | Earnings conservatism and audit committee financial expertise |
| title_full_unstemmed | Earnings conservatism and audit committee financial expertise |
| title_short | Earnings conservatism and audit committee financial expertise |
| title_sort | earnings conservatism and audit committee financial expertise |
| url | http://afaanz.org/openconf/2012/openconf.php http://hdl.handle.net/20.500.11937/27298 |