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

Research output: Journal contributionsJournal articlesResearchpeer-review

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.
Original languageEnglish
JournalInternational Journal of Economics and Accounting
Volume8
Issue number3/4
Pages (from-to)196-214
Number of pages19
ISSN2041-868X
DOIs
Publication statusPublished - 01.01.2017

Documents

DOI

Recently viewed

Publications

  1. Vibration analysis based on the spectrum kurtosis for adjustment and monitoring of ball bearing radial clearance
  2. Super-Twisting Sliding Mode Control for Differential Steering Systems in Vehicular Yaw Tracking Motion
  3. Number theoretical peculiarities in the dimension theory of dynamical systems
  4. The Lotka-Volterra Model for Competition Controlled by a Sliding Mode Approach
  5. Addendum to L. Lauwers and L. Van Liedekerke, “Ultraproducts and aggregation"
  6. Case Study
  7. Numerical investigation of laser beam-welded AA2198 joints under different artificial ageing conditions
  8. Evaluation von Unterrichtsstandards
  9. Random walks on infinite self-similar graphs
  10. Do We Really Know The Benefit Of Machine Learning In Production Planning And Control? A Systematic Review Of Industry Case Studies
  11. The Role of Zn on the Elevated Temperature Compression Behavior of Mg5Nd
  12. Do protected areas networks ensure the supply of ecosystem services? Spatial patterns of two nature reserve systems in semi-arid Spain
  13. The multipole resonance probe
  14. A new approach to semantic sustainability assessment
  15. Restricted nonlinear approximation
  16. Risk preferences under heterogeneous environmental risk
  17. Dynamics of Supply Chains Under Mixed Production Strategies
  18. Adaptive Lehrerinterventionen beim mathematischen Modellieren
  19. Feasibility of a worker-directed web-based intervention for employees with depressive symptoms
  20. A review of FEM code accuracy for reliable extrusion process analysis
  21. The IRENA Project Navigator
  22. Classifying railway stations for strategic transport and land use planning
  23. A general result on absolute continuity of non-uniform self-similar measures on the real line
  24. B7-H1 Selectively Controls TH17 Differentiation and Central Nervous System Autoimmunity via a Novel Non-PD-1-Mediated Pathway
  25. Similar factors underlie tree abundance in forests in native and alien ranges
  26. Propagation of particles injected from interplanetary shocks
  27. Bifurcation loads of circular curved beams of glued-laminated timber with continuous lateral support
  28. MICSIM-4J - A General Microsimulation Model
  29. Analysis of observability of a differential equation system describing a synchronous electromagnetic drive
  30. Associations between the financial and industry expertise of audit committee members and Key Audit Matters within related audit reports
  31. Microstructure and hardness evolution of laser metal deposited AA5087 wall-structures
  32. The multi-criteria effectiveness evaluation of the robotic group based on 3D real-time vision system
  33. The ESBW Short Scale A Test for Assessing Teachers’ Standards-Based Educational Knowledge
  34. Intra-specific leaf trait responses to species richness at two different local scales
  35. Traits of butterfly communities change from specialist to generalist characteristics with increasing land-use intensity
  36. Abnormal extrusion texture and reversed yield asymmetry in a Mg–Y-Sm-Zn-Zr alloy
  37. Microstructure and creep properties of MEZ magnesium alloy processed by thixocasting
  38. Efficient Classification of Images with Taxonomies
  39. Anisotropic wavelet bases and thresholding
  40. Recent developments in the manufacture of complex components by influencing the material flow during extrusion
  41. Sensitivity of trace-element analysis by X-ray emission induced by 0.1-10 MeV electrons
  42. An extended kalman filter for temperature monitoring of a metal-polymer hybrid fibre based heater structure
  43. Revisiting Carbon Disclosure and Performance
  44. Aluminium-rich coring structures in Mg-Al alloys with carbon inoculation
  45. An EEG frequency tagging study on biological motion perception in children with DCD
  46. The Cox ring of the space of complete rank two collineations