Three essays on audit committees and financial reporting quality

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dc.contributor Barrett, Bruce E.
dc.contributor Cook, Douglas O.
dc.contributor Dugan, Michael T.
dc.contributor Reitenga, Austin L.
dc.contributor.advisor Taylor, Gary
dc.contributor.author Abernathy, John Lewis
dc.date.accessioned 2017-03-01T14:38:03Z
dc.date.available 2017-03-01T14:38:03Z
dc.date.issued 2010
dc.identifier.other u0015_0000001_0000515
dc.identifier.other Abernathy_alatus_0004D_10540
dc.identifier.uri https://ir.ua.edu/handle/123456789/1020
dc.description Electronic Thesis or Dissertation
dc.description.abstract This dissertation investigates the relationship between audit committee characteristics and financial reporting quality. The dissertation is organized into three essays that examine this topic. The first two essays examine audit committee characteristics and their association with various measures of financial reporting quality. Essay Three summarizes relevant literature regarding conservatism, a measure of financial reporting quality. In Essay One, I examine whether adding board members with accounting financial expertise to the audit committee is associated with an increase in a firm's accounting conservatism. The results of this study provide evidence that the addition of accounting expertise is positively associated with higher conservatism as measured by the Penman and Zhang (2000) C-Score measure of conservatism, but only for firms with a strong governance structure. For firms with weak governance, the addition of accounting expertise to the audit committee is associated with higher levels of conservatism as measured by the Givoly and Hayn (2000) negative accruals measure of conservatism. However, the addition of accounting financial expertise is not associated with higher levels of conservatism as measured by the Beaver and Ryan (2000) book-to market measure. Sensitivity analysis suggests that the addition of accounting financial expertise is associated with higher conditional conservatism as measured by the Basu (1997) asymmetric loss recognition measure. In Essay Two, I investigate the association between analyst earnings forecast properties and the presence of accounting financial expertise on audit committees. The results indicate that the presence of accounting financial expertise is associated with significantly higher forecast accuracy and significantly lower forecast dispersion. Additionally, I find that the non-accounting financial expertise is significantly associated with higher analyst forecast accuracy and lower forecast dispersion, but nonfinacial expertise is not. Essay Three summarizes relevant literature regarding conservatism, a measure of financial reporting quality.
dc.format.extent 141 p.
dc.format.medium electronic
dc.format.mimetype application/pdf
dc.language English
dc.language.iso en_US
dc.publisher University of Alabama Libraries
dc.relation.ispartof The University of Alabama Electronic Theses and Dissertations
dc.relation.ispartof The University of Alabama Libraries Digital Collections
dc.relation.hasversion born digital
dc.rights All rights reserved by the author unless otherwise indicated.
dc.subject.other Accounting
dc.title Three essays on audit committees and financial reporting quality
dc.type thesis
dc.type text
etdms.degree.department Culverhouse School of Accountancy
etdms.degree.discipline Accounting
etdms.degree.grantor The University of Alabama
etdms.degree.level doctoral
etdms.degree.name Ph.D.


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