Joseph V. Carcello|Carl W. Hollingsworth|April Klein|Terry L. Neal
Audit Committee Financial Expertise, Competing Corporate Governance Mechanisms, and Earnings Management
University of Tennessee at Knoxville|Clemson University|New York University|University of Tennessee at Knoxville
prime objective sarbanesoxley act recent changes stock exchange listing standards improve quality financial reporting examine associations audit committee financial expertise alternate corporate governance mechanisms earnings management find accounting certain types nonaccounting financial expertise reduce earnings management firms weak alternate corporate governance mechanisms independent audit committee members financial expertise effective mitigating earnings management importantly find alternate corporate governance mechanisms effective substitute audit committee financial expertise constraining earnings management finally find either association positive association financial expertise real earnings management results suggest alternate governance approaches equally effective improving quality financial reporting firms flexibility design particular set governance mechanisms best fit unique situations