Busyness of audit committee directors and quality of financial information in India

Abstract

Abstract:The audit committees, as a part of the internal corporate governance mechanisms, play an important role to enhance the financial reporting quality. The busyness of audit committee members of a firm in boards and committees of other firms can affect its independent functioning, ceteris paribus. The current study examines, first, the association between multiple directorships of audit committee members and quality of financial reporting in India, second, whether endogenously determined busyness limits of busyness of the audit committee members provide better insights than those exogenously mandated by regulators. The study finds that endogenously determined busyness limits of sub-samples and the full sample explain the association between multiple directorships of audit committee members and financial reporting quality in a better way than those stipulated by regulators. Further, a lower (higher) level of busyness of audit committee members enhances (deteriorates) financial reporting quality of firms.

Corporate Governance and Quality of Financial Reporting in Emerging Markets: A Structured Literature Review

“…*3 Krismiaji et al (2016), Oh et al (2014), Bajra and Cadez (2018), Batta et al (2014), Isidro and Raonic (2012), Hundal (2016), Choi and Pae (2011), Bonetti et al (2016), Salehi and Shirazi (2016), Johl et al (2013), Nelson and Devi (2013), Houqe et al (2012), Alzoubi (2016b), Zgarni et al (2016), Ye (2014), Ahmed (2013), Alzoubi (2016a, 2017)…”

“…AC meetings (Salehi & Shirazi, 2016), block holding (Kolsi & Grassa, 2017) and regulation (Bajra & Cadez, 2018) should impact FRQ positively, but it was negative. CEO duality (Mohammed et al, 2017), board busyness (Alfraih, 2016; Hundal, 2016), audit tenure (Alzoubi, 2018), non-audit fees (Wahab et al, 2014) and political connection (Batta et al, 2014) should have a negative relationship with FRQ. However, it was positive.…”

Corporate governance in India: A systematic review and synthesis for future research

“…There are a wide variation and fragmentation among corporate governance studies in India across disciplinary fields including finance, corporate governance practices, earning management, firm performance, firm value, and some other issues. Different areas have been investigated with corporate governance such as corporate illegality (Kaur, 2017), financial disclosure (Haldar & Raithatha, 2017), equity (Fruin & Dossani, 2012;Srivastava et al, 2019), internal control disclosure (Ashfaq & Rui, 2019), international competitiveness (Haldar et al, 2016), ownership (Gollakota & Gupta, 2006), quality of financial information (Hundal, 2016), regulatory and market model (Sehgal & Mulraj, 2008), risk reporting (Saggar & Singh, 2017), Satyam failure (Narayanaswamy et al, 2015), stock market volatility and efficiency (Prasanna, 2013), sustainability (Kansil & Singh, 2018) and talent management (Chahal & Kumari, 2013).…”

Intellectual illumination of isolated scholars: An online scholarly conference in the epoch of pandemic

“…Similarly, institutional characteristics of firms influence the capital structure of firms. For example, the influence of founder members, also known as promoters, represents an institutional characteristic of firms, also affects the choice of firm-financing (Hundal, 2016(Hundal, , 2017.…”