Please use this identifier to cite or link to this item: http://hdl.handle.net/2445/127662
Title: On the relationship between compliance with recommendations on the audit committee of codes of good practices and financial reporting quality
Author: García Blandón, Josep
Argilés Bosch, Josep M.
Martínez Blasco, Mònica
Castillo Merino, David
Keywords: Empreses auditores
Auditoria
Informes tècnics
Anàlisi financera
Accounting firms
Auditing
Technical reports
Investment analysis
Issue Date: Dec-2018
Publisher: Springer Science + Business Media
Abstract: Codes of good practices provide a soft alternative to the hard legislation approach to corporate governance. These codes include a set of recommendations that companies are expected to follow in order to enhance governance structures and practices. Some of these recommendations specifically aim to improve the effectiveness of the audit committee. We investigate the relationship between the level of compliance with recommendations on the audit committee of the Spanish Unified Code and financial reporting quality, as measured by discretionary accruals and by the opinion of the audit report. We use a sample of companies listed in the Spanish stock market for the years between 2007 and 2013. Results show a strong and positive relationship between the level of compliance with recommendations and the quality of financial reporting. We also report significant results for some specific recommendations. These results are robust to various checks. Therefore, the level of compliance with recommendations on the audit committee might provide a feasible and reliable indicator of the quality of financial reports released by the company.
Note: Versió postprint del document publicat a: https://doi.org/10.1007/s10997-018-9412-1
It is part of: Journal of Management & Governance, 2018, vol. 22, num. 4, p. 921-946
URI: http://hdl.handle.net/2445/127662
Related resource: https://doi.org/10.1007/s10997-018-9412-1
ISSN: 1385-3457
Appears in Collections:Articles publicats en revistes (Empresa)

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