تاثیر اعضای کمیته حسابرسی و سبک آنها بر انتخاب گزارشگری مالی
Abstract
1- Introduction
2- Financial Reporting Choices and Audit Committee Member Style
3- Sample, Data, and Research Design
4- Empirical Results
5- Conclusion
Acknowledgments
Notes
References
Abstract
This article studies whether audit committee members and chairpersons exhibit individualspecific ‘‘styles’’ that affect corporate financial reporting practices. I track 2,941 audit committee members and 683 chairpersons across firms over time, and test whether member (chair)-specific factors explain firms’ accounting choices. I find that member and chairperson ‘‘style’’ (captured by fixed effects) is significant in explaining a firm’s probability of accounting misstatements and earnings management, and the effects are not explained away by observable member (chairperson) characteristics found by prior literature, or by the effects of CEOs or CFOs.
Introduction
The question of what influences a firm’s financial reporting practice has been examined extensively in the accounting literature (Dechow, Ge, & Schrand, 2010). Prior studies approach this question by identifying factors at the market level (Leuz, Nanda, & Wysocki, 2003), the firm level (Klein, 2002; Lang, Raedy, & Wilson, 2006), and more recently the individual manager level (Ge, Matsumoto, & Zhang, 2011). However, the papers that study the influence of individuals on corporate financial reporting decisions focus on corporate executives, mostly CEOs and CFOs.1 This article investigates the impact on corporate financial reporting choices of a different group of individuals: audit committee members. Specifically, this article examines whether financial reporting decisions are affected by differences in individual characteristics among audit committee members that are generated from various factors such as personality, ethical beliefs, and personal experiences that are not directly observable.