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Audit committee personnel training and stock price crash risk

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  • Jo, Eun Hye
  • Lee, Jung Wha (Jenny)

Abstract

This study examines whether audit committee personnel training decreases future stock price crash risk. Using a hand-collected Korean sample comprising 2,378 firm-year observations from 2018 to 2022, we find that audit committee personnel training reduces future stock price crash risk by lowering real earnings management and curbing overinvestment. Additionally, our findings are more pronounced for firms with high information reporting opacity, high information asymmetry, audit committee chairs with accounting and financial expertise, and firms audited by high-quality auditors. The findings shed light on the value of training to audit committee personnel.

Suggested Citation

  • Jo, Eun Hye & Lee, Jung Wha (Jenny), 2024. "Audit committee personnel training and stock price crash risk," Finance Research Letters, Elsevier, vol. 67(PA).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pa:s1544612324008286
    DOI: 10.1016/j.frl.2024.105798
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    References listed on IDEAS

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    More about this item

    Keywords

    Audit committee; Human capital; Audit committee training; Stock price crash risk;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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