Does Audit Committee Busyness Affect Financial Restatement? Evidence from Audit Committee Share Ownership

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dc.citation.volumeEarly View
dc.contributor.authorUddin Bhuiyan MB
dc.contributor.authorOpare S
dc.contributor.authorAhmed Z
dc.date.accessioned2024-02-26T00:21:52Z
dc.date.accessioned2024-07-25T06:47:48Z
dc.date.available2024-01-29
dc.date.available2024-02-26T00:21:52Z
dc.date.available2024-07-25T06:47:48Z
dc.date.issued2024-01-29
dc.description.abstractWe examine the association between audit committee (AC) busyness and financial restatement and determine whether AC share ownership moderates this relationship. Using logit regression analysis, we test our hypotheses on a sample of 6408 firm-year observations from 2004 to 2015 for companies listed on the Australian Securities Exchange. The study reveals that firms with busy ACs engage more in financial restatements. We also find that AC share ownership reduces financial restatements and attenuates the association between AC busyness and financial restatement. Our results are robust to endogeneity concerns emanating from firms’ deliberate decisions to grant shares to AC members. The findings of this research have several important policy implications. For instance, shareholders can benefit from AC members’ monitoring ability by allowing for share ownership. Further, our findings suggest that principles-based corporate governance guidelines have a beneficial effect on financial reporting quality. While prior studies offer mixed evidence, our research contributes to the auditing literature by providing evidence that AC share ownership moderates the association between AC busyness and financial restatement.
dc.description.confidentialfalse
dc.identifier.citationUddin Bhuiyan MB, Opare S, Ahmed Z. (2024). Does Audit Committee Busyness Affect Financial Restatement? Evidence from Audit Committee Share Ownership. Australian Accounting Review. Early View.
dc.identifier.doi10.1111/auar.12416
dc.identifier.eissn1835-2561
dc.identifier.elements-typejournal-article
dc.identifier.issn1035-6908
dc.identifier.urihttps://mro.massey.ac.nz/handle/10179/70893
dc.languageEnglish
dc.publisherJohn Wiley and Sons Australia Ltd on behalf of CPA Australia
dc.publisher.urihttps://onlinelibrary.wiley.com/doi/10.1111/auar.12416
dc.relation.isPartOfAustralian Accounting Review
dc.rights(c) 2024 The Author/s
dc.rightsCC BY-NC 4.0
dc.rights.urihttps://creativecommons.org/licenses/by-nc/4.0/
dc.titleDoes Audit Committee Busyness Affect Financial Restatement? Evidence from Audit Committee Share Ownership
dc.typeJournal article
pubs.elements-id486551
pubs.organisational-groupOther
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