Does audit committee financial expertise actually improves information readability?
This paper investigates the relationship between audit committee financial expertise, particularly considering specific accounting financial expertise, and the readability of management reports. Additionally, this study also examines whether the effect of financial experts is moderated by the intens...
| Autores: | , |
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| Tipo de recurso: | artículo |
| Fecha de publicación: | 2022 |
| País: | España |
| Institución: | Universidad de Murcia |
| Repositorio: | DIGITUM. Depósito Digital Institucional de la Universidad de Murcia |
| OAI Identifier: | oai:digitum.um.es:10201/122204 |
| Acceso en línea: | https://www.doi.org/10.6018/rcsar.420261 http://hdl.handle.net/10201/122204 |
| Access Level: | acceso abierto |
| Palabra clave: | Financial expertise Audit commitee Management readability Management report Accounting expertise Experiencia financiera Comisión de auditoría Legibilidad de la información Informes de gestión Experiencia contable CDU::6 - Ciencias aplicadas::65 - Gestión y organización. Administración y dirección de empresas. Publicidad. Relaciones públicas. Medios de comunicación de masas |
| Sumario: | This paper investigates the relationship between audit committee financial expertise, particularly considering specific accounting financial expertise, and the readability of management reports. Additionally, this study also examines whether the effect of financial experts is moderated by the intensity of the audit committee’s activity. The dataset for directors’ characteristics is hand-collected as are the management reports. The sample is composed of Spanish listed firms for the period 2013-2015. The results show a negative association between financial expertise, especially accounting financial expertise, and the readability of management reports. In addition, this association is accentuated with higher number of audit committees’ meetings. This evidence stimulates the debate on the advantages of having members with financial expertise in the audit committee. Otherwise, the use of contextual approaches in further studies regarding the role of directors is recommended. In addition, this could help regulators and professionals to guide their requirements and recommendations about directors’ qualifications. |
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