Audit committee characteristics and financial statement comparability

Medhat Endrawes, Zhuoan Feng, Meiting Lu, Yaowen Shan

Research output: Contribution to journalArticle


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.
Original languageEnglish
JournalAccounting and Finance
Publication statusE-pub ahead of print - 8 Mar 2018

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