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.
Publication Name: Journal of Accounting Research
Subject: Business
ISSN: 0021-8456
Year: 2005
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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.
Publication Name: Journal of Accounting Research
Subject: Business
ISSN: 0021-8456
Year: 2004
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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.
Publication Name: Journal of Accounting Research
Subject: Business
ISSN: 0021-8456
Year: 2005
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