Audit Committees and Financial Reporting Quality in Singapore
We examine three characteristics (independence, expertise, and overlapping membership) of audit committees and their impact on the financial reporting quality for Singapore-listed companies. The main finding is that financial reporting quality will be higher if audit committees have mixed expertise in accounting, finance, and/or supervisory. In addition, we do not find evidence that incremental independence of audit committees enhances financial reporting quality because audit committees already consist of a majority of independent directors. Finally, we fail to find any impact of overlapping membership on audit and remuneration committees on financial reporting quality. Overall, the results have policy implications on improving corporate governance effectiveness in terms of financial reporting quality.
Audit committee, Corporate governance, Expertise, Financial reporting quality, Independence, Overlapping membership
Accounting | Asian Studies | Corporate Finance
Corporate Reporting and Disclosure
Journal of Business Ethics
Springer Verlag (Germany)
Yuanto KUSNADI; Kwong Sin LEONG; SUWARDY, Themin; and Jiwei WANG.
Audit Committees and Financial Reporting Quality in Singapore. (2015). Journal of Business Ethics. 1-18. Research Collection School Of Accountancy.
Available at: http://ink.library.smu.edu.sg/soa_research/1446
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