THE RIGHT PERSON AT THE RIGHT TIME: AUDIT COMMITTEE MEMBERS AND THE QUALITY OF FINANCIAL INFORMATION
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 bu...
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| Format: | Article |
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| Language: | English |
| Published: |
Universidade de Santiago de Compostela
2018-06-01
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| Series: | Revista Galega de Economía |
| Online Access: | https://ojs3usc.devxercode.es/index.php/ubr/article/view/3143 |
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| Summary: | 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. |
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| ISSN: | 1132-2799 2255-5951 |