Does the market value financial expertise on audit committees of boards of directors?

Article Abstract:

An examination of three-day cumulative abnormal returns around the announcement of 702 newly appointed outside directors assigned to audit committees is conducted to test whether the market reacts favorably to the appointment of directors with financial expertise to the audit committee. A positive market reaction to the appointment of accounting financial experts assigned to audit committees is found but no reaction to nonaccounting financial experts.

Appointments, resignations and dismissals, Financial analysts

---

Investor protection and corporate governance: evidence from worldwide CEO turnover

Article Abstract:

Researches reveal that an essential feature of good governance is strong investor protection, which is defined as the extent of laws that safeguard rights of investors and the strength of the legal institutions that bring about law enforcement. Tests that indicated law enforcement institutions significantly improve the association between CEO turnover and poor performance are discussed.

Legal issues & crime, Government regulation (cont), Government regulation, Legal/Government Regulation, Analysis, Laws, regulations and rules, Corporate governance, Investors

---

Consequences of financial reporting failure for outside directors: Evidence from accounting restatements and audit committee members

Article Abstract:

Penalties for outside directors, particularly audit committee members is examined, when their companies experience accounting restatements by using a sample of 409 companies that restated their earnings from 1997 to 2001. The result is consistent with outside directors, especially audit committee members, bearing reputational costs for financial reporting failure.

Reporting & Disclosure, Influence, Financial statements

Similar abstracts:

• Abstracts: Effects of market reform on the trading costs and depths of Nasdaq stocks. The dynamics of institutional and individual trading
• Abstracts: Technological developments and economies of scale in dairy industry. The economic efficiency of Irish dairy marketing co-operatives
• Abstracts: The internationalization of small to medium-sized retail companies: towards a conceptual framework. The effect of 9-ending prices on retail sales: a quantitative UK based field study
• Abstracts: Examining the effect of salesperson service behavior in a competitive context. Digitization of selling activity and sales force performance: An empirical investigation
• Abstracts: The link between salespeople's job satisfaction and customer satisfaction in a business-to-business context: a Dyadic analysis

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.