Can audit committee improve earnings quality more than the supervisors in Taiwan?
Journal
NTU Management Review
Journal Volume
24
Journal Issue
S1
Start Page
203
End Page
232
Date Issued
2014-09
Author(s)
Abstract
This study examines whether companies that are allowed to switch to the audit committee from the supervisors can achieve better earnings quality. I compare earnings quality for firms that switch to the audit committee between pre-adoption and post-adoption periods, relative to the corresponding change for a matched sample that retain the supervisors. I find that firms can improve earnings quality after they switch from the supervisors to audit committee. My findings suggest that firms adopting audit committee can embrace shareholder primacy to a larger extent than those that retain the supervisors.
SDGs
Type
journal article