Audit Committee Effectiveness and Accounting Conservatism a Test of Lagged Effect

dc.contributor.author Khan, Saif Ur-Rehman
dc.contributor.author Khan, Faisal
dc.contributor.author Elshareif, Elgilani
dc.date.accessioned 2020-10-13T06:02:33Z
dc.date.available 2020-10-13T06:02:33Z
dc.date.copyright 2018
dc.date.issued 2018
dc.description This article is not available at CUD collection. The version of scholarly record of this Article is published in International Journal of Corporate Finance and Accounting (IJCFA) (2018), available online at: https://doi.org/10.4018/IJCFA.2018070104. en_US
dc.description.abstract This article examines the effect of audit committee effectiveness on two measures of accounting conservatism. In addition, this article also investigates the interaction effect of four endogenous variables (i.e. firm's operating risks, leverage, managerial influence, firm's size) and three exogenous variables on relationship between audit committee effectiveness and two measures of accounting conservatism. A total of 543 sample firms are selected from the Bursa Malaysia for the period from 2004 to 2013. In addition, some information relating to audit committee and auditor quality are collected from firms' annual reports. For data analysis, panel data methodology is employed, and multiple regression analysis technique is used to test the developed hypotheses of this study. Results show that interaction effect of firm's operating risks, managerial influence, external auditor quality and capital market uncertainty found to be significant with two-year-lagged effect on both measures of conservatism. Whereas, the interaction effect of firm's leverage, firm's size and product market completion are found to be insignificant. The findings of this study contribute to the signaling theory, agency theory, reputation theory and accounting conservatism literature with lagged effect in emerging economies settings. en_US
dc.identifier.citation Khan, S. U., Khan, F., & Elshareif, E. (2018). Audit Committee Effectiveness and Accounting Conservatism a Test of Lagged Effect. International Journal of Corporate Finance and Accounting (IJCFA), 5(2), 42-64. https://doi.org/10.4018/IJCFA.2018070104 en_US
dc.identifier.isbn 9781522546924
dc.identifier.issn 2334-4628
dc.identifier.uri https://doi.org/10.4018/IJCFA.2018070104
dc.identifier.uri http://hdl.handle.net/20.500.12519/259
dc.language.iso en en_US
dc.publisher IGI Global en_US
dc.relation Authors Affiliations : Saif Ur-Rehman Khan (Canadian University of Dubai, Dubai, UAE), Faisal Khan (City University College of Ajman, Ajman, UAE) and Elgilani Elshareif (Canadian University of Dubai, Dubai, UAE)
dc.relation.ispartofseries International Journal of Corporate Finance and Accounting (IJCFA);Volume 5, Issue 2
dc.rights Permission to reuse abstract has been secured from IGI Global.
dc.title Audit Committee Effectiveness and Accounting Conservatism a Test of Lagged Effect en_US
dc.type Article en_US
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