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Research On Audit Committee Effectiveness Of Listed Company

Posted on:2011-05-21Degree:MasterType:Thesis
Country:ChinaCandidate:J C DaiFull Text:PDF
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Audit Committee is an important system of corporate governance arrangements, whose role is to help organizations monitor the risks, control the financial reporting process, coordinating internal and external audit, in order to improve the disclosure quality of financial information, and ensure full performance and discharge of fiduciary duty. In 2002, China officially launched the audit committee system, so far still in its infancy. Although the listed companies are hard to promote audit committee, with the rising established number, the actual results did not achieve the desired functionality. Researches on audit committee have significant points:in practice help improve the quality of accounting information and in capital markets enhance the confidence of investors; in theoretical study strengthen the corporate governance structure and. In this context, I learned from the perspective of quality of information disclosure quality inspecting audit committee effectiveness. This study combines the results and the defects of reality. At last, I gave a few comments. This paper is divided into five parts.The first part is the introduction, about the background, significance, basic ideas, research methods and other issues.The second part is literature reviews about audit committee. These have two categories, and one is established reasons, and the other is the effectiveness. Why establishes audit committee has no conclusion, and we find that improving the quality of financial reporting and protecting the interests of major shareholders are two important motivations. Studies on the effectiveness of audit committee have a wide range. According to the variable representative of the quality of financial information disclosure, we can choose financial fraud, reporting restatement and earnings management, but the effectiveness of the audit committee is still the research focus. The third part is the theoretical analysis of the audit committee. Firstly briefly reviewing the course of development at home and abroad, then analyzing the nature of the audit committee and clarifying the relationship among the audit committee, management and external audit, while considering the quality of information disclosure, I summary three audit committee's operational conditionsThe fourth part is the empirical study between the audit committee and information disclosure. This paper selects listed companies in the Shenzhen Stock A share Exchange in 2009 as the research sample, first using descriptive methods showed the numbers in China where companies have established audit committee, on this basis, these companies will be established as a separate sample, through the regression model to examine the relationship. Empirical results confirm the establishment of audit committee can improve the information quality. In further study about what features play its validity in the audit committee to, the empirical results show that the Board's independence, professional and authority are significantly correlated to the quality of information disclosure, so proved the hypothesis.The fifth part is the end of the paper, including research findings, policy recommendations, research flaws and prospects.
Keywords/Search Tags:Listed Companies, Audit Committee, Governance Effectiveness, Quality of Information Disclosure
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