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Audit Committee, External Auditor, and Financial Reporting Quality in Indian Corporate Sector | ||
International Journal of Finance & Managerial Accounting | ||
دوره 10، شماره 36، فروردین 2025، صفحه 169-190 اصل مقاله (743.82 K) | ||
نوع مقاله: Original Article | ||
شناسه دیجیتال (DOI): 10.30495/ijfma.2023.56632.1518 | ||
نویسندگان | ||
Nasrollah Takhtaei 1؛ Jawahar Lal2؛ Sanjay K Jain3 | ||
1Department of Accounting, Dezful Branch, Islamic Azad University, Dezful, Iran | ||
2Formerly Professor of Accounting, Department of Commerce, Delhi School of Economics, University of Delhi, Delhi - 110007, INDIA | ||
3Professor of Marketing and International Business, Department of Commerce, Delhi School of Economics, University of Delhi, Delhi - 110007, INDIA | ||
چکیده | ||
This study empirically examines the association between corporate governance and financial reporting quality in Indian corporate sector. In this regard, corporate governance has been measured by characteristics of two mechanisms, namely audit committee and external auditors as external mechanism. Furthermore, accruals quality as attribute of earnings quality has been used as the proxy for financial reporting quality. This study uses 1250 firm-year observations from a sample of 250 firms drawn from top 500 Indian companies listed on National Stock Exchange (NSE) over a fiveyear period from 2008 to 2012. In order to test developed hypotheses, panel data regression with has been employed to determine the influence of corporate governance characteristics on financial reporting quality measured by earnings quality attributes. With regard to audit committee characteristics, this study provides some evidence that although audit committee size, and audit committee independence are found to be significantly related to financial reporting quality, audit committee meetings and audit committee accounting expertise have no significant relationship with financial reporting quality. Regarding external auditor, the findings demonstrate that contradictory to the expectation, audit fee is not significantly associated with financial reporting quality. The results for last hypothesis show that non-audit fee ratio has a negative and significant relationship with financial reporting quality. The results are also robust to additional test using year and industry as dummy variables. | ||
کلیدواژهها | ||
Audit Committee؛ External Auditor؛ Financial Reporting Quality؛ Earnings Quality؛ Accruals Quality | ||
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