The role of audit committees in decreasing earnings management: Korean evidence
The several accounting scandals that have occurred recently in the USA suggest the importance of well-functioning audit committees. This study examines how the characteristics of audit committees â€“ independence, competency and activity â€“ are related to earnings management. The data used in the analyses are collected from the Korean stock market during the period 2000-2001. The empirical results demonstrate that the independence and competency of the audit committee are associated with the earnings management of a firm. Specifically, the committee members' shareholdings are positively associated with earnings management, while the presence of professors or the employees of financial institutions on the committee is negatively associated with earnings management. However, the activity measure of the committee is not significantly related to earnings management. These results suggest several important implications for regulatory bodies on the composition of audit committees.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 1 (2004)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.inderscience.com/browse/index.php?journalID=41|
When requesting a correction, please mention this item's handle: RePEc:ids:ijaape:v:1:y:2004:i:1:p:37-60. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Darren Simpson)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.