Audit Committee Competence and earnings management in Europe
This study analyses the association between the competence of audit committee members and earningsmanagement in a sample of 142 non-financial firms from France, Germany, Italy, Spain, and the UnitedKingdom over the 2006–2013 period. We measure members’ competence through their dedication andexpertis...
| 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:11441/129405 |
| Acceso en línea: | https://hdl.handle.net/11441/129405 https://doi.org/10.6018/rcsar.385331 |
| Access Level: | acceso abierto |
| Palabra clave: | Accounting expertise Audit committee Corporate governance Earnings management Financial expertise Experiencia contable Comité de auditoría Gobierno corporativo Gestión de beneficios Experiencia financiera |
| Sumario: | This study analyses the association between the competence of audit committee members and earningsmanagement in a sample of 142 non-financial firms from France, Germany, Italy, Spain, and the UnitedKingdom over the 2006–2013 period. We measure members’ competence through their dedication andexpertise. We find that outside directorships have a dual effect, such that a balanced level of dedication tothe audit committee (roughly two outside directorships) reduces earnings management. We examine fourtypes of expertise: audit, non-audit accounting, non-accounting financial, and supervisory expertise. Wefind a negative relation between earnings management and the audit experience of committee members,and that the other types of expertise play no relevant role. We also find that the contribution of audit expertsto curbing earnings management proves particularly important in smaller and less active committees, aswell as in smaller and busier boards. |
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