Abstract
This article investigates the association between the board of directors, the audit committee and the external auditor (as well as an aggregate governance index) and the extent of conservatism evident in Australian firms' financial reporting. Overall, the results provide only weak evidence that firms with certain governance characteristics report more conservatively. Evidence of any such link is restricted to measures of board composition and leadership, and even then the results are sensitive to the method used to measure the extent of conservatism in financial reporting.
| Original language | English |
|---|---|
| Pages (from-to) | 1007-1030 |
| Number of pages | 24 |
| Journal | Accounting and Finance |
| Volume | 51 |
| Issue number | 4 |
| DOIs | |
| Publication status | Published - Dec 2011 |
Keywords
- Audit committee
- Audit quality
- Board independence
- Conservatism
- Corporate governance