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Audit committees and earnings quality
Journal article   Open access   Peer reviewed

Audit committees and earnings quality

Peter Baxter and J Cotter
Accounting and Finance, Vol.49(2), pp.267-290
2009
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PDF - Author's Accepted Version229.69 kBDownloadView
Accepted VersionPDF - Author Accepted Version Open Access
url
https://doi.org/10.1111/j.1467-629X.2008.00290.xView
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Abstract

audit committees corporate governance earnings management earnings quality
This research investigates whether audit committees are associated with improved earnings quality for a sample of Australian listed companies prior to the introduction of mandatory audit committee requirements in 2003. Two measures of earnings quality are used based on models first developed by Jones (1991) and Dechow and Dichev (2002). Our results indicate that formation of an audit committee reduces intentional earnings management but not accrual estimation errors. We also find differences in the associations between audit committee accounting expertise and the two earnings quality measures. Other audit committee characteristics examined are not significantly related to either earnings quality measure.

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Business, Finance
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