The Effect of Audit Committee Turnover on Earnings Quality:An Analysis of Family Firms

• Main Authors: CHO,CHIA-CHI, 卓珈琪
• Other Authors: WANG,YA-FANG
• Format: Others
• Language: en_US
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/r6c7y6

碩士 === 靜宜大學 === 會計學系 === 107 === There is no doubt that better communication and cooperation among audit committee (AC) members, increase the effectiveness of AC function for overseeing the financial reporting process and safeguarding the firm’s stakeholders. Therefore, understanding the effects of AC team-member turnover is especially important because each member plays a vital role in affecting the effectiveness of AC’s operations and management. The objective of this study is to analyze whether ACs experiencing member turnover affect the financial reporting quality. I find that AC team-member turnover is significantly associated with lower earnings quality. Moreover, this outcome is especially present in AC turnover firms without accounting expertise or a family-controlled structure. I further find that director interlocking occurs in AC strengthening the association between AC turnover and lower earnings quality.