Audit Committee Characteristics and Financial Reporting Comparability

Feng, Z; Lu, M; Shan, Y; Endrawes, M

Audit Committee Characteristics and Financial Reporting Comparability

Feng, Z

Lu, M Shan, Y

Endrawes, M

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Publisher:: Wiley
Publication Type:: Journal Article
Citation:: Accounting and Finance, 2020
Issue Date:: 2020

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Field	Value	Language
dc.contributor.author	Feng, Z https://orcid.org/0000-0002-2676-2391	en_US
dc.contributor.author	Lu, M	en_US
dc.contributor.author	Shan, Y https://orcid.org/0000-0003-2156-8722	en_US
dc.contributor.author	Endrawes, M	en_US
dc.date.issued	2020	en_US
dc.identifier.citation	Accounting and Finance, 2020	en_US
dc.identifier.issn	0810-5391	en_US
dc.identifier.uri	http://hdl.handle.net/10453/131767
dc.description.abstract	Financial statement comparability enables weighing the similarities and differences in financial performance between firms. Prior studies mainly focus on the role of accounting standards in the production of comparability, but the role of economic agents has been largely overlooked. We find that a firm's audit committee size and financial expertise affect its financial statement comparability. Financial information tends to be more comparable among industry peers when audit committees are larger and more members have financial and accounting expertise. The effect of audit committee expertise on comparability is stronger for firms with less independent and smaller boards, for firms with non‐Big 4 auditors and for firms with CEOs serving as the chairperson of the boards.	en_US
dc.publisher	Wiley	en_US
dc.relation.ispartof	Accounting and Finance	en_US
dc.relation.isbasedon	10.1111/acfi.12354	en_US
dc.subject.classification	Accounting	en_US
dc.title	Audit Committee Characteristics and Financial Reporting Comparability	en_US
dc.type	Journal Article
utslib.for	1501 Accounting, Auditing and Accountability	en_US
utslib.for	1502 Banking, Finance and Investment	en_US
utslib.for	1402 Applied Economics	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Accounting Discipline
utslib.copyright.status	closed_access
pubs.consider-herdc	true	en_US
pubs.publication-status	Published	en_US

Abstract:

Financial statement comparability enables weighing the similarities and differences in financial performance between firms. Prior studies mainly focus on the role of accounting standards in the production of comparability, but the role of economic agents has been largely overlooked. We find that a firm's audit committee size and financial expertise affect its financial statement comparability. Financial information tends to be more comparable among industry peers when audit committees are larger and more members have financial and accounting expertise. The effect of audit committee expertise on comparability is stronger for firms with less independent and smaller boards, for firms with non‐Big 4 auditors and for firms with CEOs serving as the chairperson of the boards.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/131767