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...

Full description

Bibliographic Details
Main Authors: Sultana, Nigar, Williams, Mitchell
Format: Journal Article
Published: Wiley-Blackwell Publishing Asia 2013
Online Access:http://onlinelibrary.wiley.com/doi/10.1111/acfi.12042/full
http://hdl.handle.net/20.500.11937/62840
_version_ 1848760924749430784
author Sultana, Nigar
Williams, Mitchell
author_facet Sultana, Nigar
Williams, Mitchell
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.
first_indexed 2025-11-14T10:23:31Z
format Journal Article
id curtin-20.500.11937-62840
institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T10:23:31Z
publishDate 2013
publisher Wiley-Blackwell Publishing Asia
recordtype eprints
repository_type Digital Repository
spelling curtin-20.500.11937-628402019-02-19T04:28:02Z Earnings Conservatism and Audit Committee Financial Expertise Sultana, Nigar Williams, Mitchell 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. 2013 Journal Article http://hdl.handle.net/20.500.11937/62840 http://onlinelibrary.wiley.com/doi/10.1111/acfi.12042/full Wiley-Blackwell Publishing Asia restricted
spellingShingle Sultana, Nigar
Williams, Mitchell
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://onlinelibrary.wiley.com/doi/10.1111/acfi.12042/full
http://hdl.handle.net/20.500.11937/62840