JOURNAL OF ACCOUNTING AND FINANCE
Audit Committee Chair Characteristics and Real Earnings Management
Author(s): Shiyaamsundar Thiruvadi, Sheela Thiruvadi, Kelly E. Carter
Citation: Shiyaamsundar Thiruvadi, Sheela Thiruvadi, Kelly E. Carter, (2021) "150 Credit-Hours: Stakeholders’ Benefits and Students’ Skills and Attributes," Journal of Accounting and Finance, Vol. 21, Iss. 4, pp. 1-13
Article Type: Research paper
Publisher: North American Business Press
Abstract:
We examine the relationship between male versus female audit committee chair characteristics and real earnings management (REM). REM occurs when the firm deviates from its normal operations because managers wish to misrepresent true performance. We find that a female audit committee chair and a chair with prior auditor experience, regardless of gender, are both associated with lower REM and thus greater financial statement transparency for investors. Overall, the findings support the ideas that (1) a female audit committee chair and (2) an older audit committee chair, regardless of gender, promote financial statement transparency.