The role of the audit committee and institutional investors in constraining earnings management : evidence from Chinese firms listed in Hong Kong
Data(s) |
2009
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Resumo |
Using data from 2004 to 2008, we find that an audit committee is an important monitoring mechanism as audit committee independence, expertise and size are associated with reduced levels of abnormal accruals, our measure of earnings management. This study also attempts to discern when the monitoring role of the audit committee is more salient for the firm. We find that ownership concentration and the presence of government officials on the audit committee are important determinants of the negative association between audit committee characteristics and earnings management. In contrast, we find no significant associations between the audit committee and abnormal accruals for Chinese firms listed only on the Chinese domestic Stock Exchanges. The paper contributes to the corporate governance literature in a transitional economy. Identifying the role of audit committees of firms listed on markets other than the domicile market demonstrates the importance of considering the institutional setting in governance research. |
Formato |
application/pdf |
Identificador | |
Publicador |
Accounting and Finance Association of Australia and New Zealand (AFAANZ) |
Relação |
http://eprints.qut.edu.au/37996/1/c37996.pdf http://www.afaanz.org/openconf-afaanz2009/openconf.php Lin, Philip Teng, Hutchinson, Marion R., & Percy, Majella (2009) The role of the audit committee and institutional investors in constraining earnings management : evidence from Chinese firms listed in Hong Kong. In Proceedings of Accounting & Finance Association of Australia & New Zealand Annual Conference 2009, Accounting and Finance Association of Australia and New Zealand (AFAANZ), Adelaide . |
Direitos |
Copyright 2009 [please consult the authors] |
Fonte |
QUT Business School; School of Accountancy |
Palavras-Chave | #150303 Corporate Governance and Stakeholder Engagement #Corporate Governance #cross-listing #audit committee #earnings management |
Tipo |
Conference Paper |