Publication Type

Journal Article

Version

Preprint

Publication Date

11-2016

Abstract

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.

Keywords

Audit committee, Corporate governance, Expertise, Financial reporting quality, Independence, Overlapping membership, Singapore

Discipline

Accounting | Asian Studies | Corporate Finance

Research Areas

Corporate Reporting and Disclosure

Publication

Journal of Business Ethics

Volume

139

Issue

1

First Page

197

Last Page

214

ISSN

0167-4544

Identifier

10.1007/s10551-015-2679-0

Publisher

Springer Verlag (Germany)

Copyright Owner and License

Authors

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Additional URL

http://doi.org/10.1007/s10551-015-2679-0

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