The Right Person at the Right Time: Audit Committee Members and the Quality of Financial Information
Forthcoming in Universia Business Review
18 Pages Posted: 23 Aug 2018
Date Written: August 13, 2018
We analyze some personal characteristics of the members of the audit committee of the Spanish listed firms and the relation between these characteristics and earnings management. We find a non-linear relation with tenure, so that long tenures can initially compromise the directors’ independence but, after a given threshold, longer tenures improve the expertise of the members. Serving in too many boards has a negative influence on the ability of directors to detect earnings management, and higher academic background and more diverse professional background improve the directors’ abilities.
Keywords: Audit Committee, Auditing, Corporate Governance, Earnings Management, Expertise
JEL Classification: M42, G34
Suggested Citation: Suggested Citation