Meta-analysis of Audit Committee Independence and Financial Reporting Quality

Subject Areas : Management Accounting

Ameneh Bazrafshan ¹ , Rezvan Hejazi ² , Ali Rahmani ³ , Susan Bastani ⁴

1 - دانشجوی دکتری حسابداری دانشگاه الزهرا
2 - استاد حسابداری، دانشگاه الزهرا.
3 - دانشیار حسابداری، دانشگاه الزهرا.
4 - دانشیار جامعه شناسی، دانشگاه الزهرا.

Received: 2014-12-26 Accepted : 2015-04-04 Published : 2015-06-22

Keywords: meta-analysis, Audit Committee, financial reporting quality an,

Abstract :

The purpose of this paper is Meta-analysis of audit Committee independence and financial reporting quality. In spite of general expectation for positive relationship between audit committee independence and financial reporting quality, the empirical researches reveal several inconsistence conclusions. So, we conduct a meta-analysis of the association between audit independence and financial reporting quality in period of year 2000 to 2013. Although we cannot reliably aggregate results across studies in a statistical sense because of inconsistencies in defining FRQ and the absence of replication studies, quantitative review techniques after considering homogeneity analysis (by within-group Q and between-group Q) yield three conclusions: first the use of different FRQ measures in the AC independence literature explains the variation in results across studies. Second there is no relationship between audit committee independence and “earnings management and quality score”. Third there is positive relationship between audit committee independence and “accrual quality, abnormal return, restatement and fraud”.