Audit committee and regulatory scrutiny

This paper examines the relationship between audit committee characteristics and regulatory scrutiny. Comment letters issued by the Securities and Exchange Organization of Iran were used to measure regulatory scrutiny. Empirical results show that audit committee financial expertise increases (decrea...

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Detalles Bibliográficos
Autores: Hesarzadeh, Reza, Bazrafshan, Ameneh, Aqel, Saher
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2022
País:Brasil
Institución:Fundação Getulio Vargas (FGV)
Repositorio:Revista de Administração de Empresas
Idioma:portugués
inglés
OAI Identifier:oai:ojs.periodicos.fgv.br:article/86718
Acceso en línea:https://periodicos.fgv.br/rae/article/view/86718
Access Level:acceso abierto
Palabra clave:financial expertise
independence
comment letter
audit committee
regulatory scrutiny
Expertise financeira
independência
carta de comentário
comitê de auditoria
escrutínio regulatório
experiencia financiera
independencia
carta de comentarios
comité de Auditoría
control Regulatorio
Descripción
Sumario:This paper examines the relationship between audit committee characteristics and regulatory scrutiny. Comment letters issued by the Securities and Exchange Organization of Iran were used to measure regulatory scrutiny. Empirical results show that audit committee financial expertise increases (decreases) regulatory scrutiny when audit committee independence is low (high). This paper informs the cost-benefit debate on audit committee financial expertise. It contributes to the literature by showing that regulatory scrutiny is jointly influenced by the audit committee independence and financial expertise. The paper is of interest to researchers and shareholders, boards of directors, and other practitioners who wish to improve the composition and quality of audit committees, especially in emerging markets where corporate governance codes are still developing.