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.


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.

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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

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