| Issue |
E3S Web Conf.
Volume 409, 2023
International Conference on Management Science and Engineering Management (ICMSEM 2023)
|
|
|---|---|---|
| Article Number | 01006 | |
| Number of page(s) | 14 | |
| Section | Sustainable Development | |
| DOI | https://doi.org/10.1051/e3sconf/202340901006 | |
| Published online | 01 August 2023 | |
Audit Committee Chair’s Geographic Distance and Earnings Quality
1 School of Business, Sichuan University, Chengdu 610065, People’s Republic of China
2 Victoria University, Melbourne 3000, The Commonwealth of Australia
* e-mail: SissiNiu@outlook.com, linrongyu199882@163.com
** e-mail: lilybelle.occeno@gmail.com
This paper empirically examines the relationship between the geographical distance of audit committee chairs(ACCs) and corporate earnings quality by taking A-share listed companies in Shanghai and Shenzhen from 2007 to 2018 as samples. It is found that the geographical distance between ACC’s work place and the operation place of listed companies can significantly reduce earnings quality, and the farther the geographical distance, the worse the earnings quality. In addition, the external audit conducted by the Big4 auditors can significantly suppress the impact of geographical distance on earnings quality. Further analysis found that there is a partial mediation effect in the quality of internal control. The research conclusions of this paper provide a new idea for for companies to appoint ACCs. The research on accounting and financial issues from the perspective of economic geography is refined to the field of audit committee, which enriches the research literature on factors influencing the functions of ACCs. It is of great significance to improve the performance of the committee, the long-term development of the company and the protection of investors’ interests.
Key words: Audit committee chair / Earnings quality / Geographic distance / Big4 / Internal controls
© The Authors, published by EDP Sciences, 2023
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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