Hasil (
Bahasa Indonesia) 1:
[Salinan]Disalin!
in monitoring real activities manipulation. However, we find no evidence that the other
four audit committee characteristics can affect real earnings management.
Our study contributes to the academic and practitioner literature in the following
ways. First, this study extends the extant research on audit committees’ oversight of real
earnings management by using refined research design and updated data. There is little
research that has comprehensively examined the effect of audit committee
characteristics on real earnings management. Second, this study provides further
evidence on how audit committee members’ additional directorships affect their ability
to oversee both accrual and real earnings management. We document that audit
committees with high additional directorships are less effective in constraining
abnormal discretionary expenses, abnormal cash flows from operation and abnormal
production costs. We also find the same effect of additional directorships on accrual
earnings management, although the existent literature shows mixed evidence.
Moreover, our findings provide implications for strengthening the role of independent
audit committees in monitoring real earnings manipulation.
The remainder of the paper is organized as follows. Section 2 provides a
background to the study and discusses the related literature. Section 3 develops the
hypotheses, followed by a description of the research design in Section 4. Section 5
analyzes and discusses the empirical results and Section 6 concludes the paper.
Sedang diterjemahkan, harap tunggu..