The Impact of Audit Committee Information Technology Expertise on the Reliability and Timeliness of Financial Reporting
| Autor: | Dan Russomanno, Paul N. Michas, Musaib Ashraf |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
Finance
Economics and Econometrics 050208 finance Earnings business.industry media_common.quotation_subject Corporate governance 05 social sciences Audit committee Information technology 050201 accounting Test (assessment) Accounting 0502 economics and business Quality (business) Endogeneity Business Reliability (statistics) media_common |
| Zdroj: | The Accounting Review. 95:23-56 |
| ISSN: | 1558-7967 0001-4826 |
| Popis: | We examine whether information technology expertise on audit committees impacts the reliability and timeliness of financial reporting. We find a reduction in the likelihood of material restatement, a reduction in the likelihood of information technology-related material weaknesses (which account for 55 percent of all reported material weaknesses), and more timely earnings announcements at firms with audit committee information technology expertise. These findings are robust to controlling for a firm's other information technology attributes, as well as when using entropy balanced samples, and we mitigate endogeneity concerns with evidence that our findings hold in a subsample of firms that all possess overall high-quality information technology. Finally, a difference-in-differences analysis, inclusion of firm fixed effects, and a falsification test largely support our assertion that the quality of financial reporting is significantly improved by the presence of an audit committee information technology expert. JEL Classifications: M41; M15. Data Availability: All data used in the study are publicly available. |
| Databáze: | OpenAIRE |
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