Open AccessThe Impact Of Audit Committees Personal Characteristics On Earnings Management: Evidence From China
Author(s) -
Baolei Qi,
Gaoliang Tian
Publication year - 2012
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v28i6.7347
Subject(s) - earnings management , accounting , audit , business , china , earnings , audit committee , earnings quality , affect (linguistics) , independence (probability theory) , quality (philosophy) , quality audit , psychology , political science , law , philosophy , statistics , accrual , communication , mathematics , epistemology
This study investigates the influence of audit committees personal characteristics on the firms earnings management behavior using Chinas publicly traded firms during 2004-2010. Overall, our findings suggest that audit committees several personal characteristics, such as age, gender, education level, and working experience, are associated with earnings management, which in turn may affect the quality of financial reporting. The results are robust after controlling the size, independence, meeting frequency of audit committee, and other firm specific characteristics. The results are consistent with the predictions based on the Upper Echelons Theory. The contributions to the earnings management literature and implications for regulators and investors are also discussed.