6533b861fe1ef96bd12c4f3c
RESEARCH PRODUCT
Busyness of audit committee directors and quality of financial information in India
Shabnamjit Hundalsubject
Organizational Behavior and Human Resource Managementresource dependence theoryAccrualtalousCeteris paribusStrategy and ManagementAudit committeeeducationAudit evidenceIndiaAccountingChief audit executiveraportointispline regressionextended interlockingJoint audithealth services administrationaccruals0502 economics and businessreputational capitalInformation technology auditagency theoryBusiness and International ManagementFinanceta511business.industryCorporate governancefinancial reporting qualityaudit committee05 social sciencesagenttiteorialaatu050201 accountingauditointibusinessbusyness of directors050203 business & managementdescription
The audit committees, as a part of the internal corporate governance mechanisms, play an important role to enhance the financial reporting quality. The busyness of audit committee members of a firm in boards and committees of other firms can affect its independent functioning, ceteris paribus. The current study examines, first, the association between multiple directorships of audit committee members and quality of financial reporting in India, second, whether endogenously determined busyness limits of busyness of the audit committee members provide better insights than those exogenously mandated by regulators. The study finds that endogenously determined busyness limits of sub-samples and the full sample explain the association between multiple directorships of audit committee members and financial reporting quality in a better way than those stipulated by regulators. Further, a lower (higher) level of busyness of audit committee members enhances (deteriorates) financial reporting quality of firms. peerReviewed
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2016-01-01 | International Journal of Business Governance and Ethics |