Do overlapping audit and compensation committee memberships contribute to better financial reporting quality? Empirical evidence for the German two-tier system

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

Authors

Strengthening audit committee effectiveness is a key challenge from a research, regulation and corporate practice perspective. Audit committees’ monitoring role in financial reporting is of great importance for shareholders and other stakeholder groups. This empirical-quantitative study examines overlapping membership in the audit and compensation committees and its impact on financial reporting quality. The analysis covers a sample of German firms listed on the ‘DAX’, ‘TecDAX’ and ‘MDAX’ for the business years 2010–2016 (426 firm-year observations). Correlation and regression analyses were conducted to evaluate the link between two overlapping variables and financial reporting quality. While the first overlapping variable (proportion of audit committee members who also sit on the compensation committee) contributes positively to accrual quality (as financial reporting quality), no significant results were found for the second overlapping variable (the existence of an independent financial expert as an overlapping member). The main result holds for robustness checks and has major implications in the German two-tier system.
OriginalspracheEnglisch
ZeitschriftInternational Journal of Economics and Accounting
Jahrgang8
Ausgabenummer3/4
Seiten (von - bis)196-214
Anzahl der Seiten19
ISSN2041-868X
DOIs
PublikationsstatusErschienen - 01.01.2017

Dokumente

DOI

Zuletzt angesehen

Publikationen

  1. Customer accounting and free return policies of retailers
  2. Thermal Conductivity Measurement of Salt Hydrates as Porous Material using Calorimetric (DSC) Method
  3. Bank management of the net interest margin
  4. Evaluating Introductory Lectures in Entrepreneurship
  5. A revised theory of contestable markets
  6. An overview of European programs to support energy projects in Africa and strategies to involve the private sector
  7. Implementierung und langfristige Wirkungen des Projekts ‚Jedem Kind ein Instrument‘.
  8. Waste-to-nutrition
  9. Datenmodellierung mit dem Entity-Relationship-Ansatz
  10. Building actor-centric transformative capacity through city-university partnerships
  11. Exploring the uncanny valley effect in social robotics
  12. EARL
  13. An "intelligent product system" to replace "waste management"
  14. Unsustainability as a key source of epi- and pandemics: conclusions for sustainability and ecosystems accounting
  15. Internet of Things-Specific Challenges for Enterprise Architectures
  16. The EU at a crossroads. Negotiations about the multiannual financial framework 2021-2027
  17. Prologue: Analyzing the Fine Details of Political Commitment
  18. Challenges in calculating two-year college student transfer rates to four-year colleges
  19. Variational pragmatics
  20. Fun and Military Games
  21. Sex differences in mental rotation strategy
  22. Fatigue life enhancement via residual stress engineering due to local forming during refill friction stir spot welding
  23. Multi-level Governance, Policy Implementation and Participation
  24. The potential impacts of insecticides on the life-history traits of bees and the consequences for pollination
  25. Effect of the mother tree age and acorn weight in the regenerative characteristics of Quercus faginea
  26. A new approach to semantic sustainability assessment
  27. Akteure, Berater und Beobachter, oder: wie kommt Strategie in die Politik?
  28. Substanz, Körper und Affekte
  29. Towards a Multi-Level Approach to Studying Entrepreneurship in Professional Services
  30. An Imperfect Union?
  31. Change in sustainability conceptions
  32. Converging perspectives in audience studies and digital literacies