Audit Committees and Financial Reporting Quality in Singapore

Yuanto Kusnadi, Kwong Sin Leong, Themin Suwardy and Jiwei Wang ()
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Yuanto Kusnadi: Singapore Management University
Kwong Sin Leong: Singapore Management University
Themin Suwardy: Singapore Management University

Journal of Business Ethics, 2016, vol. 139, issue 1, No 13, 197-214

Abstract: Abstract We examine three characteristics (independence, expertise, and overlapping membership) of audit committees and their impact on the financial reporting quality for Singapore-listed companies. The main finding is that financial reporting quality will be higher if audit committees have mixed expertise in accounting, finance, and/or supervisory. In addition, we do not find evidence that incremental independence of audit committees enhances financial reporting quality because audit committees already consist of a majority of independent directors. Finally, we fail to find any impact of overlapping membership on audit and remuneration committees on financial reporting quality. Overall, the results have policy implications on improving corporate governance effectiveness in terms of financial reporting quality.

Keywords: Corporate governance; Audit committee; Independence; Expertise; Overlapping membership; Financial reporting quality (search for similar items in EconPapers)
JEL-codes: G34 M41 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (21)

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DOI: 10.1007/s10551-015-2679-0

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