Does audit committee financial expertise actually improves information readability?
This paper investigates the relationship between audit committee financial expertise, particularly consider- ing 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 inte...
| Autores: | , |
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| Tipo de recurso: | artículo |
| Estado: | Versión publicada |
| Fecha de publicación: | 2022 |
| País: | España |
| Institución: | Universidad de Sevilla (US) |
| Repositorio: | idUS. Depósito de Investigación de la Universidad de Sevilla |
| OAI Identifier: | oai:idus.us.es:11441/142508 |
| Acceso en línea: | https://hdl.handle.net/11441/142508 https://doi.org/10.6018/rcsar.420261 |
| Access Level: | acceso abierto |
| Palabra clave: | Financial expertise Audit committee Information readability Management report Accounting expertise Experiencia financiera Comisión de auditoría Legibilidad de la información Informes de gestión Experiencia contable |
| Sumario: | This paper investigates the relationship between audit committee financial expertise, particularly consider- ing 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 com- mittee’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 expert- ise 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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