The Impact Of Audit Committees Personal Characteristics On Earnings Management: Evidence From China

Qi, Baolei; Tian, Gaoliang

doi:10.19030/jabr.v28i6.7347

Cited by 54 publications

(57 citation statements)

References 56 publications

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“…These results suggest that more women in audit committee will increase real activities manipulation. These results are not consistent with Qi and Tian (2012) finding that proportion of women in audit committee has negative influence on real activities manipulation. Based on the results, women in audit committee cannot reduce real activities manipulation.…”

Section: Test Of Hypothesiscontrasting

confidence: 95%

“…The conservative women have a higher level of ethics than the audit committee men. Qi and Tian (2012) find that gender differences in leadership can positively impact on profitability. They argue that gender differences may lead to differences of opinion.…”

Section: Hypothesismentioning

confidence: 92%

“…Audit committee members who are older will be more conservative in selecting the external auditor, more preventive against collision between external auditors and managers, and more experience than the young auditor (Qi and Tian 2012). Based on this explanation, the hypothesis is formulated as follows:…”

Section: Hypothesismentioning

confidence: 99%

“…Qi and Tian (2012) explain that education level can reflect a person's abilities and skills. Executives with higher levels of education can make better decisions based on their cognitive abilities to better process and analyze the information and problems in the company.…”

Section: Hypothesismentioning

confidence: 99%

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Characteristics of Audit Committee and Real Activities Manipulation: Case from Indonesia

Sanjaya

Jati

2015

A New Paradigm for International Business

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The objective of this research is to investigate the impact of characteristics of audit committee on real activities manipulation. This research has a contribution for developing theory on earnings management. The last researches find that audit committee has an impact on accrual earnings management. Because, earnings management are not only using accruals but management can manage earnings through real activities manipulation. Therefore, this study has new angle and perspective to improve studying in relation between audit committee and earnings management. This study collects data from manufacturing industry listed in the Indonesia Stock Exchange on the period 2007-2011. The sum of observations is 125 firm years. The dependent variable of this study is real activities manipulation, and the independent variables are characteristics of audit committee such as the age of audit committee members, gender (the proportion of women on audit committee members), and education of audit committee members. This study uses one proxy for real earnings management such as measuring abnormal operating cash flow. The age, gender, and education of audit committee have no influence on real activities manipulation.

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Section: Test Of Hypothesiscontrasting

confidence: 95%

Section: Hypothesismentioning

confidence: 92%

Section: Hypothesismentioning

confidence: 99%

Section: Hypothesismentioning

confidence: 99%

See 2 more Smart Citations

Characteristics of Audit Committee and Real Activities Manipulation: Case from Indonesia

Sanjaya

Jati

2015

A New Paradigm for International Business

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“…Furthermore, agency theory also posits that females on corporate boards might strengthen existing control mechanisms over managers and executives, since board gender diversity increases board independence because women ask more questions than men 1 (Carter et al, 2010). In this vein, previous research provides evidence 8 that board gender diversity has an important effect on fostering good corporate practice (Burgess andTharenou, 2002; Rogelberg andRumery, 1996), dividend policy (Van Pelt, 2013; Wellalage et al, 2012 and financial reporting quality (Gulzar andWang, 2011; Qi andTian, 2012), among others.…”

Section: Theoretical Background and Hypotheses Developmentmentioning

confidence: 99%

Female Institutional Directors on Boards and Firm Value

2016

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The aim of this research is to examine what impact female institutional directors on boards have on corporate performance. Previous research shows that institutional female directors cannot be considered as a homogeneous group since they represent investors who may or may not maintain business relations with the companies on whose corporate boards they sit. Thus, it is not only the effect of female institutional directors as a whole on firm value that has been analysed, but also the impact of pressureresistant female directors, who represent institutional investors (investment, pension and mutual funds) that only invest in the company, and do not maintain a business relation with the firm. We hypothesise that there is a nonlinear association, specifically quadratic, between institutional and pressureresistant female directors on boards and corporate performance. Our results report that female institutional directors on boards enhance corporate performance, but when they reach a certain threshold on boards (11.72%), firm value decreases. In line with female institutional directors, pressureresistant female directors on boards also increase firm value, but only up to a certain figure (12.71% on boards), above which they have a negative impact on firm performance. These findings are consistent with an invertedU shape relationship between female institutional directors and pressureresistant female directors and firm performance.

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Age diversity of audit committee financial experts, ownership structure and earnings management: Evidence from China

et al. 2021

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The extant literature has shown the impact of demographic characteristics such as gender of audit committee members on earnings management but ignored the importance of the board room's age diversity. Going beyond the prior literature, our study aims to examine how the age diversity of audit committee financial experts (ACFEs) influences the financial reporting quality of Chinese non-financial firms. We found a negative relationship between ACFEs' age diversity and earning management. Our findings also show that younger ACFEs mitigate earnings management as compared to older ACFEs. We further examined this relationship among state-owned enterprises (SOEs) and privately-owned enterprises in China and confirmed that the age diversity of ACFEs influences earnings management differently. However, younger ACFEs working in SOEs mitigates earnings management than their counterpart in privately-owned companies. Our result maintains its robustness after controlling for endogeneity and employing a different measure of earnings management. Our result has relevance for selecting financial experts and the overall composition of the audit committee, showing that including younger ACFEs will ensure more efficient control of firms' management. This finding is also relevant for policymakers, especially Chinese regulators, offering them insight into promoting audit committee effectiveness.

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The Impact Of Audit Committees Personal Characteristics On Earnings Management: Evidence From China

Cited by 54 publications

References 56 publications

Characteristics of Audit Committee and Real Activities Manipulation: Case from Indonesia

Characteristics of Audit Committee and Real Activities Manipulation: Case from Indonesia

Female Institutional Directors on Boards and Firm Value

Age diversity of audit committee financial experts, ownership structure and earnings management: Evidence from China

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