Is audit committee expertise connected with increased readability of integrated reports: Evidence from EU companies

Research output: Journal contributionsJournal articlesResearchpeer-review

Standard

Is audit committee expertise connected with increased readability of integrated reports: Evidence from EU companies. / Velte, Patrick.
In: Problems and Perspectives in Management (PPM), Vol. 16, No. 2, 20.04.2018, p. 23-41.

Research output: Journal contributionsJournal articlesResearchpeer-review

Harvard

APA

Vancouver

Bibtex

@article{23d7729687c541748d2e5168b295b31e,
title = "Is audit committee expertise connected with increased readability of integrated reports: Evidence from EU companies",
abstract = "This study contributes to the recent “managerial ability” literature and analyzes the impact of audit committees{\textquoteright} financial and sustainability expertise (i.e. combined and separately as individuals) on the readability of integrated reports. Analyses were conducted with data on a sample of European Union (EU) public interest entities (PIE) from the Examples Database of the International Integrated Reporting Council (IIRC) for the fiscal years 2014–2016 (i.e. 215 firm-year observations). Correlation and regression analyses were conducted to evaluate possible links between either financial or sustainability expertise and combined financial and sustainability expertise in audit committees and the readability of integrated reports, as measured by the Flesch Reading Ease and Gunning Fog indices. While audit committees{\textquoteright} financial and sustainability expertise has a positive impact on the readability of integrated reports, combined expertise has a stronger effect compared with either financial or sustainability expertise. This finding is in line with the idea that, to combine financial and sustainability information in integrated reports, audit committees need to have more diverse expertise. Companies, regulators and researchers could be significantly affected by the finding that managerial ability variables such as audit committee expertise can have a considerable impact on integrated reporting.",
keywords = "Management studies, audit committee, corporate governance, corporate social responsibility, financial expertise, integrated report, sustainable expertise, Gender and Diversity",
author = "Patrick Velte",
note = "Publisher Copyright: {\textcopyright} Patrick Velte, 2018.",
year = "2018",
month = apr,
day = "20",
doi = "10.21511/ppm.16(2).2018.03",
language = "English",
volume = "16",
pages = "23--41",
journal = "Problems and Perspectives in Management (PPM)",
issn = "1727-7051",
publisher = "Business Perspectives",
number = "2",

}

RIS

TY - JOUR

T1 - Is audit committee expertise connected with increased readability of integrated reports

T2 - Evidence from EU companies

AU - Velte, Patrick

N1 - Publisher Copyright: © Patrick Velte, 2018.

PY - 2018/4/20

Y1 - 2018/4/20

N2 - This study contributes to the recent “managerial ability” literature and analyzes the impact of audit committees’ financial and sustainability expertise (i.e. combined and separately as individuals) on the readability of integrated reports. Analyses were conducted with data on a sample of European Union (EU) public interest entities (PIE) from the Examples Database of the International Integrated Reporting Council (IIRC) for the fiscal years 2014–2016 (i.e. 215 firm-year observations). Correlation and regression analyses were conducted to evaluate possible links between either financial or sustainability expertise and combined financial and sustainability expertise in audit committees and the readability of integrated reports, as measured by the Flesch Reading Ease and Gunning Fog indices. While audit committees’ financial and sustainability expertise has a positive impact on the readability of integrated reports, combined expertise has a stronger effect compared with either financial or sustainability expertise. This finding is in line with the idea that, to combine financial and sustainability information in integrated reports, audit committees need to have more diverse expertise. Companies, regulators and researchers could be significantly affected by the finding that managerial ability variables such as audit committee expertise can have a considerable impact on integrated reporting.

AB - This study contributes to the recent “managerial ability” literature and analyzes the impact of audit committees’ financial and sustainability expertise (i.e. combined and separately as individuals) on the readability of integrated reports. Analyses were conducted with data on a sample of European Union (EU) public interest entities (PIE) from the Examples Database of the International Integrated Reporting Council (IIRC) for the fiscal years 2014–2016 (i.e. 215 firm-year observations). Correlation and regression analyses were conducted to evaluate possible links between either financial or sustainability expertise and combined financial and sustainability expertise in audit committees and the readability of integrated reports, as measured by the Flesch Reading Ease and Gunning Fog indices. While audit committees’ financial and sustainability expertise has a positive impact on the readability of integrated reports, combined expertise has a stronger effect compared with either financial or sustainability expertise. This finding is in line with the idea that, to combine financial and sustainability information in integrated reports, audit committees need to have more diverse expertise. Companies, regulators and researchers could be significantly affected by the finding that managerial ability variables such as audit committee expertise can have a considerable impact on integrated reporting.

KW - Management studies

KW - audit committee

KW - corporate governance

KW - corporate social responsibility

KW - financial expertise

KW - integrated report

KW - sustainable expertise

KW - Gender and Diversity

UR - http://www.scopus.com/inward/record.url?scp=85048085002&partnerID=8YFLogxK

U2 - 10.21511/ppm.16(2).2018.03

DO - 10.21511/ppm.16(2).2018.03

M3 - Journal articles

VL - 16

SP - 23

EP - 41

JO - Problems and Perspectives in Management (PPM)

JF - Problems and Perspectives in Management (PPM)

SN - 1727-7051

IS - 2

ER -

Documents

DOI