Open AccessAudit Committee Financial Expertise and Financial Reporting Timeliness in Emerging Market: Does Audit Committee Chair Matter?
Author(s) -
Saeed Rabea Baatwah,
Naveed Ahmad,
Zalailah Salleh
Publication year - 2018
Publication title -
issues in social and environmental accounting/issues in social and environmental accounting (isea)
Language(s) - English
Resource type - Journals
eISSN - 2460-6081
pISSN - 1978-0591
DOI - 10.22164/isea.v10i4.164
Subject(s) - audit committee , audit , accounting , business , audit evidence , chief audit executive , joint audit , finance , accounting management , audit plan , internal audit , accounting information system
This study examines whether audit committee chair with financial expertise enhances the audit committee role in financial reporting quality in emerging market. We investigate this influence by employing the direct effect and moderating effect of audit committee chair with financial expertise on financial reporting timeliness. By using Omani data and the panel data method for two proxies for financial reporting timeliness, we find that audit committee chair with financial expertise enhances the timeliness of financial reporting through making the disclosure of annual reports timely. Further, we report evidence showing that both accounting and nonaccounting financial expertise on the audit committee have a positive and significant influence on the timeliness of financial reporting. We also document that the association between financial expertise and the timeliness of financial reporting is more pronounced when the chair of the audit committee has accounting expertise. This study is among the comprehensive evidence prove that audit committee chair with accounting expertise contributes to the quality of financial reporting in emerging market.