The Association Between Accruals Quality and the Characteristics of Accounting Experts and Mix of Expertise on Audit Committees*

Dhaliwal, Dan S.; Naiker, Vic; Navissi, Farshid

doi:10.1111/j.1911-3846.2010.01027.x

Cited by 512 publications

(330 citation statements)

References 105 publications

(194 reference statements)

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“…Consistent with the findings from prior studies (Dhaliwal, et al, 2010;Zhang et al, 2007), I find that the presence of both independent accounting experts and independent nonaccounting financial experts is related to lower possibility of using accruals to beat the target for firms with negative earnings surprises in quarter t+1. This evidence implies that the broad definition of financial expertise might reflect the needs of both accounting (CPA or accountant) and nonaccounting expertise (investment banker, CEO or president).…”

Section: Introductionsupporting

confidence: 80%

“…For example, although Krishnan et al (2008) find that accounting conservatism is not correlated with nonaccounting financial expertise or nonfinancial expertise, Zhang et al (2007) find that both accounting and nonaccounting experts negatively affect the possibility of internal control weakness. Dhaliwal et al (2010) also find that the mix of accounting and nonaccounting financial expertise has the most positive impact on accruals quality.…”

Section: Introductionmentioning

confidence: 81%

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Do financial expert directors affect the incidence of accruals management to meet or beat analyst forecasts?

Hsu

2015

Asia-Pacific Journal of Accounting & Economics

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Section: Introductionsupporting

confidence: 80%

Section: Introductionmentioning

confidence: 81%

Do financial expert directors affect the incidence of accruals management to meet or beat analyst forecasts?

Hsu

2015

Asia-Pacific Journal of Accounting & Economics

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“…According to Dhaliwal, Naiker & Navissi (2010: 792), financial reporting issues involve high levels of technical details and, hence, a high degree of knowledge of accounting rules are required to recognize critical accounting issues at such high levels of earnings management. Indeed, in line with this conjecture, evidence demonstrates that boards including at least one individual with financial (accounting) expertise are associated with higher financial reporting quality (Dhaliwal et al, 2010;Krishnan & Visvanathan, 2008;Zhang, Zhou & Zhou, 2007 A second potential obstacle a foreign director faces is language (Kassis-Henderson, 2005, 2010Piekkari et al, 2015;Tenzer, Pudelko & Harzing, 2014). Although English seems to be the lingua franca of boards that include a foreign director (Piekkari et al, 2015), language potentially affects the 6 effectiveness of the board in two ways.…”

Section: Hypothesis 1 There Is a Negative Association Between The Prmentioning

confidence: 80%

“…It can be expected that a more experienced chairman is associated with more effective oversight (Chan, Liu & Sun, 2013;Dhaliwal et al, 2010). Lastly, as recent research shows that the presence of one or more female directors is associated with tougher monitoring in general and reduced levels of earnings management in particular (Adams & Ferreira, 2009;Srinidhi et al, 2011), we also control for female representation on the firm's board of directors.…”

Section: Control Variablesmentioning

confidence: 99%

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The Impact of Board Internationalization on Earnings Management

et al. 2016

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in ABSTRACTPrior literature shows that choices regarding board composition are associated with earnings management. We add to this literature by examining the effects of the presence of a foreign board member on earnings management. Using a sample of 3,249 firm-year observations representing 586 non-financial listed Nordic firms during 2001-2008, we find that the presence of a non-Nordic, foreign director is associated with significantly higher levels of earnings management. Moreover, we provide preliminary evidence that differences in accounting knowledge drive this effect. Our results suggest that it may not necessarily be beneficial to appoint a foreign director to the board.

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Corporate social and environmental disclosure as a sustainable development tool provided by board sub‐committees: Do women directors play a relevant moderating role?

2021

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The aim of this research is to examine the impact of three audit committee characteristics on corporate social and environmental responsibility (CSR) disclosure: the existence of an audit committee, audit committee independence, and audit committee financial expertise. Moreover, this research analyzes the moderating effect of board gender diversity between these audit committees' attributes and CSR reporting. The results of analyzing 13,178 firm-year observations of non-financial companies show that the presence of an audit committee and audit committee financial expertise are positively associated with CSR disclosure. However, a higher proportion of non-executive directors in audit committees has a negative effect on the disclosure of CSR information. These findings suggest that some audit committees' features play an important role in ensuring the reporting of environmental, social, and economic information. Our evidence also indicates that the presence of female directors on boards increases the positive impact of financial expert membership of audit committees on CSR disclosure, while women directors moderate any negative effect of the percentage of independent directors on audit committees on CSR reporting by increasing the latter. In addition, female directors moderate the positive impact of the existence of an audit committee on the disclosure of CSR information by reducing the latter.

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The Association Between Accruals Quality and the Characteristics of Accounting Experts and Mix of Expertise on Audit Committees*

Cited by 512 publications

References 105 publications

Do financial expert directors affect the incidence of accruals management to meet or beat analyst forecasts?

Do financial expert directors affect the incidence of accruals management to meet or beat analyst forecasts?

The Impact of Board Internationalization on Earnings Management

Corporate social and environmental disclosure as a sustainable development tool provided by board sub‐committees: Do women directors play a relevant moderating role?

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