| Summary: | 碩士 === 東海大學 === 會計學系 === 105 === This study investigates whether industry expertise of independent directors enhances board monitoring effectiveness by examining the financial reporting quality in Taiwan from 2010 to 2015. Using absolute discretionary accruals to measure financial reporting quality, this paper finds that industry expertise, when independent directors’ present employment and concurrently serve as other public firms are in the same industry, can improve the financial reporting quality. However, accruals quality is found to decrease with the employment history of industry expertise of independent directors. Overall, the results suggest that industry expertise of independent directors provide the monitoring effectiveness only when they are industry experts in the current time.
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