Publication Type
Journal Article
Version
submittedVersion
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)
Citation
Yuanto KUSNADI; Kwong Sin LEONG; SUWARDY, Themin; and Jiwei WANG.
Audit committees and financial reporting quality in Singapore. (2016). Journal of Business Ethics. 139, (1), 197-214.
Available at: https://ink.library.smu.edu.sg/soa_research/1497
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1007/s10551-015-2679-0
Included in
Accounting Commons, Asian Studies Commons, Corporate Finance Commons