Abstract
This study examines how audit committee characteristics influence earnings quality (EQ), focusing on the mediating role of audit quality (AQ). Using panel data from 2019 to 2021 and fixed and random effects regression models, the study analyzes variables such as audit committee independence (ACI), financial expertise (ACE), meeting frequency (ACM), leverage (LEV), and firm size. Results show that ACI and ACE negatively affect EQ, while leverage positively impacts it. Notably, AQ mediates these relationships, highlighting its crucial role in enhancing financial reporting. Interestingly, frequent audit committee meetings are linked to lower EQ, suggesting that meeting frequency should be strategically managed. The findings underscore the importance of a well-structured audit committee in improving audit and earnings quality, which is essential for strong corporate governance and financial crime prevention. While the research focuses on leading sectors in Malaysia, the insights have broader implications for improving financial transparency and investor confidence across various industries. The study emphasizes the need for balance in audit committee attributes and effective oversight to ensure reliable and transparent financial reporting.
Metadata
Item Type: | Article |
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Creators: | Creators Email / ID Num. Johari, Razana Juhaida UNSPECIFIED Rashid, Norfadzilah nikmfadzilah@unisza. edu.my Mohd Kamil, Norliana UNSPECIFIED |
Subjects: | H Social Sciences > HF Commerce > Accounting. Bookkeeping > Auditing. Auditors > Audit committees |
Divisions: | Universiti Teknologi MARA, Shah Alam > Accounting Research Institute (ARI) |
Journal or Publication Title: | Asia-Pacific Management Accounting Journal (APMAJ) |
UiTM Journal Collections: | UiTM Journals > Asia-Pacific Management Accounting Journal (APMAJ) |
ISSN: | 2550-1631 |
Volume: | 20 |
Number: | 1 |
Page Range: | pp. 85-116 |
Keywords: | Audit committee characteristics, earnings quality, audit quality, corporate governance |
Date: | April 2025 |
URI: | https://ir.uitm.edu.my/id/eprint/115805 |