Audit committee effectiveness in a mandatory disclosure environment

Chapple, Ellie Larelle, Jubb, Christine, & Lee, Jenny (2012) Audit committee effectiveness in a mandatory disclosure environment. In Proceedings of the 2012 Accounting and Finance Association of Australia and New Zealand Conference, Accounting and Finance Association of Australia and New Zealand (AFAANZ) , Melbourne, VIC.

Abstract

This study examines audit committee effectiveness in its association with regulatory compliance in a highly sanctioned environment. It uses the Australian continuous disclosure regime to investigate whether audit committee effectiveness is associated with a higher frequency of disclosures, thereby enhancing the efficiency of the capital market and creating more informed individual investors. The findings show that, as hypothesised, audit committee effectiveness measured as an index composed of sub-components involving audit committee size, meeting frequency, independence, member financial literacy and membership of other audit committees, is positively associated with disclosure frequency. Further tests show that it is the financial literacy sub component which is most implicated in this relationship. Company size, years of listing, the proportion of inventories and receivables to total assets, whether or not the company has been involved in a takeover offer or bid or in changes to its number of shares are significant control variables.

Impact and interest:

Citation counts are sourced monthly from Scopus and Web of Science® citation databases.

These databases contain citations from different subsets of available publications and different time periods and thus the citation count from each is usually different. Some works are not in either database and no count is displayed. Scopus includes citations from articles published in 1996 onwards, and Web of Science® generally from 1980 onwards.

Citations counts from the Google Scholar™ indexing service can be viewed at the linked Google Scholar™ search.

Full-text downloads:

115 since deposited on 23 Oct 2014
49 in the past twelve months

Full-text downloads displays the total number of times this work’s files (e.g., a PDF) have been downloaded from QUT ePrints as well as the number of downloads in the previous 365 days. The count includes downloads for all files if a work has more than one.

ID Code: 78017
Item Type: Conference Paper
Refereed: No
Keywords: continuous disclosure, audit committee, corporate governance
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > ACCOUNTING AUDITING AND ACCOUNTABILITY (150100)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Accountancy
Copyright Owner: Copyright 2012 The Author(s)
Deposited On: 23 Oct 2014 22:59
Last Modified: 05 Nov 2014 09:18

Export: EndNote | Dublin Core | BibTeX

Repository Staff Only: item control page