IDEAS home Printed from https://ideas.repec.org/a/eme/mrrpps/mrr-02-2017-0046.html
   My bibliography  Save this article

Audit committee accounting expertise and forward-looking disclosures

Author

Listed:
  • Cristina Abad
  • Francisco Bravo

Abstract

Purpose - The purpose of this study is to examine how the accounting expertise of audit committee members is associated with the disclosure of forward-looking information. Design/methodology/approach - Manual content analysis is used to analyze forward-looking information disclosed in annual reports as well as gather data about the accounting expertise of directors. Regression analysis is performed to study the association between the disclosure variables and the accounting expertise of audit committee members. Findings - The results show that the accounting expertise of audit committee members is associated with forward-looking disclosure practices, particularly with information of a financial and strategic nature. Practical implications - The evidence has direct implications for companies in the selection of directors, as stakeholders may demand nomination committees to appoint audit committees with the accounting experts. They may also request regulatory actions regarding the structure of the audit committee, as these add to the evidence on the benefits of selecting such experts. Social implications - The evidence on the role of accounting expertise could also help the US Securities and Exchange Commission (SEC) to narrow the definition of financial expertise to specifically consider accounting expertise, as is already happening in the EU context. Originality/value - This paper extends prior research on corporate governance and voluntary disclosure by showing the association between the company having at least one accounting expert in the audit committee and the level of disclosure of value-relevant information.

Suggested Citation

  • Cristina Abad & Francisco Bravo, 2018. "Audit committee accounting expertise and forward-looking disclosures," Management Research Review, Emerald Group Publishing Limited, vol. 41(2), pages 166-185, March.
  • Handle: RePEc:eme:mrrpps:mrr-02-2017-0046
    DOI: 10.1108/MRR-02-2017-0046
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/MRR-02-2017-0046/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://www.emerald.com/insight/content/doi/10.1108/MRR-02-2017-0046/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://libkey.io/10.1108/MRR-02-2017-0046?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. George Drogalas & Michail Nerantzidis & Dimitrios Mitskinis & Ioannis Tampakoudis, 2021. "The relationship between audit fees and audit committee characteristics: evidence from the Athens Stock Exchange," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 18(1), pages 24-41, March.
    2. Boguslawa Bek-Gaik & Anna Surowiec, 2021. "Forward-looking Disclosures in Integrated Reporting: Evidence from Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(4B), pages 952-981.
    3. Hidaya Lawati & Khaled Hussainey & Roza Sagitova, 2021. "Disclosure quality vis-à-vis disclosure quantity: Does audit committee matter in Omani financial institutions?," Review of Quantitative Finance and Accounting, Springer, vol. 57(2), pages 557-594, August.
    4. Hamzeh Al Amosh & Saleh F. A. Khatib, 2021. "Corporate governance and voluntary disclosure of sustainability performance: the case of Jordan," SN Business & Economics, Springer, vol. 1(12), pages 1-22, December.
    5. Wan-Hussin, Wan Nordin & Fitri, Hadiati & Salim, Basariah, 2021. "Audit committee chair overlap, chair expertise, and internal auditing practices: Evidence from Malaysia," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 44(C).
    6. Ali Shariff Kabara & Dewi Fariha Abdullah & Saleh F. A. Khatib & Ayman Hassan Bazhair & Hamzeh Al Amosh, 2023. "Moderating Role of Governance Regulatory Compliance on Board Diversity and Voluntary Disclosure of Non-Financial Firms in a Developing Country," Sustainability, MDPI, vol. 15(5), pages 1-19, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:mrrpps:mrr-02-2017-0046. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.