Abstract
The aim of this research is to examine the effect of audit committee financial
expertise (measured by audit committee experience in accounting, supervision, and
financial)and audit committee status (relative to management) on earnings management. Our samples consist of 384 observations in Indonesia Stock Exchange for the year 2012- 2014. The result of this research shows that audit commite financial expertise has no
significant effect on earnings management. However, we find evidence that audit
committee financial expertise haspositive effect on income decreasing accruals. This
finding indicates that audit committee may perceived that conservatism is one of the
mechanism to restrict management opportunistic behavior. We do not find significant
evidence of the joint effect of audit committee status and audit committeee expertise on
earnings management.
expertise (measured by audit committee experience in accounting, supervision, and
financial)and audit committee status (relative to management) on earnings management. Our samples consist of 384 observations in Indonesia Stock Exchange for the year 2012- 2014. The result of this research shows that audit commite financial expertise has no
significant effect on earnings management. However, we find evidence that audit
committee financial expertise haspositive effect on income decreasing accruals. This
finding indicates that audit committee may perceived that conservatism is one of the
mechanism to restrict management opportunistic behavior. We do not find significant
evidence of the joint effect of audit committee status and audit committeee expertise on
earnings management.
| Original language | English |
|---|---|
| Journal | Jurnal Akuntansi |
| Publication status | Published - 2018 |