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

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aut.relation.endpage54
aut.relation.issue1
aut.relation.journalAustralian Accounting Review
aut.relation.startpage29
aut.relation.volume34
dc.contributor.authorUddin Bhuiyan, MB
dc.contributor.authorOpare, S
dc.contributor.authorAhmed, Z
dc.date.accessioned2024-05-01T23:57:43Z
dc.date.available2024-05-01T23:57:43Z
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.identifier.citationAustralian Accounting Review, ISSN: 1035-6908 (Print); 1835-2561 (Online), Wiley, 34(1), 29-54. doi: 10.1111/auar.12416
dc.identifier.doi10.1111/auar.12416
dc.identifier.issn1035-6908
dc.identifier.issn1835-2561
dc.identifier.urihttp://hdl.handle.net/10292/17500
dc.languageen
dc.publisherWiley
dc.relation.urihttps://onlinelibrary.wiley.com/doi/10.1111/auar.12416
dc.rights© 2024 The Authors. Australian Accounting Review published by John Wiley & Sons Australia, Ltd on behalf of CPA Australia. This is an open access article under the terms of the Creative Commons Attribution-NonCommercial License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited and is not used for commercial purposes.
dc.rights.accessrightsOpenAccess
dc.rights.urihttp://creativecommons.org/licenses/by-nc/4.0/
dc.subject3501 Accounting, Auditing and Accountability
dc.subject3502 Banking, Finance and Investment
dc.subject35 Commerce, Management, Tourism and Services
dc.subject3507 Strategy, Management and Organisational Behaviour
dc.subject1499 Other Economics
dc.subject1501 Accounting, Auditing and Accountability
dc.subject3501 Accounting, auditing and accountability
dc.titleDoes Audit Committee Busyness Affect Financial Restatement? Evidence From Audit Committee Share Ownership
dc.typeJournal Article
pubs.elements-id536625
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