Abstract: This paper examines how corporate boards and audit committees are associated with financial disclosure quality for a sample of 235 IPO companies that went public during the period 1999-2006. Absolute forecast error is used to proxy for earnings forecast accuracy to represent financial disclosure quality. Company with higher percentage of non-executive directors in the audit committees and larger audit committee size are found to have greater accuracy in forecasts. The results are consistent with the belief that effective corporate governance is associated with higher financial disclosure quality.

Research Team :
•  Assoc. Prof Dr Nurwati Ashikin Ahmad Zaluki

Institute :
Universiti Utara Malaysia

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