The Research On The Impact Of Financial Expert In Audit Committee To The Quality Of Accounting Information Disclosure

In the process of the development of China’s capital market, the poor quality ofChina’s accounting information disclosure has been exposed by a series ofinformation disclosure scandals, and it is the audit committee whose responsibility ismainly supervising the quality of accounting information disclosure that is to beblamed. As an important institutional arrangement of corporate governance, America’sSarbanes-Oxley proposed that the audit committee must be equipped with suitablemembers and then fulfill its responsibilities efficiently, there must be equipped withthe Financial Experts who is independent director with both independence andprofessional competence, who will be good help to audit committee to fulfillresponsibility efficiently such as supervision of the quality of accounting informationdisclosure, and internal audit quality control, etc. Article52of the listed companygovernance guidelines which Take effect in our country in2002is ruled that there isat least one accounting professional independent director in the audit committee.Therefore, the policies have been paid attention to the financial experts in auditcommittee on its supervisory function and ensuring the quality of accountinginformation disclosure.Most of domestic scholars have researched the audit committee’s role insupervision of quality of accounting information disclosure from the characteristics ofthe audit committee such as the professionalism, integrity, diligence, authority, etc.But there are few studies from the financial experts that both are independence andprofessional competence which play a key role in the audit committee. Especially,considering that different professional background of financial experts have differentreputation; there is more little further study on the financial experts in auditcommittee’ difference of resumption from this angle.This article is under the background of the implementation of new accountingstandards and special activities of the China securities regulatory commission aboutthe governance of listed companies in2007, plus that most of the listed companieshave been established the audit committees after the year. First of all, the articlereviews the related literature on the quality of accounting information disclosure andthe financial experts in audit committee; Secondly, combing the related concepts andthe basic theory of financial experts in audit committee on developing supervisoryfunction; Then, carrying on the theoretical analysis from the financial professional competencies and financial experts professional background respectively and then putforward the hypothesis of theoretical analysis; Finally, we select study sample froma-share listed companies of SZSC between2008and2010, spicilegium the data ofthe background of the financial experts in audit committee and the quality ofaccounting information disclosure by hand, using the binary logistic regression modelinspection examine the influence of financial experts in audit committee on thequality of accounting information disclosure from the above two points of view.Logistic regression results show that the listed company’s financial experts in auditcommittee can improve the quality of accounting information disclosure significantly,and different professional background financial experts have different influence onthe quality of accounting information disclosure, whereby the financial experts fromthe colleges will improve the quality of accounting information disclosure moreeffectively. Therefore, in order to play the performance of the supervision functioneffectively, the audit committee must be equipped with financial experts who are bothindependence and professional competence; Ensure that improve the financial marketand financial experts professional reputation mechanism. And then, it will provide theexperience of reference for government departments to carry out effective supervisionand improve the system of audit committee.