Earnings conservatism and audit committee financial expertise
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Using an Australian sample of 494 firm-year observations, this study finds that accounting financial expertise is the primary type of expertise that influences earnings conservatism, rather than nonaccounting financial expertise. The association between accounting financial expertise and conservatism holds only when the accounting financial expert(s) on audit committees is (are) independent. Overall, results suggest that audit committee accounting financial expertise is important in recognising the asymmetrical timeliness of losses. Findings provide a better understanding of the dynamics between audit committee financial expertise and earnings conservatism and demonstrate the importance of accounting financial expertise in improving financial reporting quality.
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Sultana, Nigar; Van der Zahn, J-L.W. (2012)This study examines the association between earnings conservatism and four different measures of audit committee financial expertise. Statistical tests are based on 494 firm-year observations drawn from Australian publicly ...
Sultana, Nigar; Williams, Mitchell (2013)Using an Australian sample of 494 firm-year observations, this study finds that accounting financial expertise is the primary type of expertise that influences earnings conservatism, rather than nonaccounting financial ...
Sultana, Nigar (2015)This study examines the association between four pivotal audit committee characteristics and accounting conservatism. Using a sample of 7,668 Australian firm-year observations from 2004 to 2012, a positive association is ...