Earnings conservatism and audit committee financial expertise

Using an Australian sample of 494 firm-year observations, this study finds that accounting financial expertise is the primary type of expertise that influences earnings conservatism, rather than nonaccounting financial expertise. The association between accounting financial expertise and conservatis...

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Main Authors: Sultana, Nigar, Van der Zahn, J.
Format: Journal Article
Published: Wiley-Blackwell Publishing Asia 2015
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/3034
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author Sultana, Nigar
Van der Zahn, J.
author_facet Sultana, Nigar
Van der Zahn, J.
author_sort Sultana, Nigar
building Curtin Institutional Repository
collection Online Access
description Using an Australian sample of 494 firm-year observations, this study finds that accounting financial expertise is the primary type of expertise that influences earnings conservatism, rather than nonaccounting financial expertise. The association between accounting financial expertise and conservatism holds only when the accounting financial expert(s) on audit committees is (are) independent. Overall, results suggest that audit committee accounting financial expertise is important in recognising the asymmetrical timeliness of losses. Findings provide a better understanding of the dynamics between audit committee financial expertise and earnings conservatism and demonstrate the importance of accounting financial expertise in improving financial reporting quality.
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institution Curtin University Malaysia
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spelling curtin-20.500.11937-30342017-09-13T14:32:14Z Earnings conservatism and audit committee financial expertise Sultana, Nigar Van der Zahn, J. Corporate governance Conservatism Audit committee financial expertise Using an Australian sample of 494 firm-year observations, this study finds that accounting financial expertise is the primary type of expertise that influences earnings conservatism, rather than nonaccounting financial expertise. The association between accounting financial expertise and conservatism holds only when the accounting financial expert(s) on audit committees is (are) independent. Overall, results suggest that audit committee accounting financial expertise is important in recognising the asymmetrical timeliness of losses. Findings provide a better understanding of the dynamics between audit committee financial expertise and earnings conservatism and demonstrate the importance of accounting financial expertise in improving financial reporting quality. 2015 Journal Article http://hdl.handle.net/20.500.11937/3034 10.1111/acfi.12042 Wiley-Blackwell Publishing Asia restricted
spellingShingle Corporate governance
Conservatism
Audit committee financial expertise
Sultana, Nigar
Van der Zahn, J.
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
topic Corporate governance
Conservatism
Audit committee financial expertise
url http://hdl.handle.net/20.500.11937/3034