| Summary: | 碩士 === 國立成功大學 === 會計學系碩博士班 === 101 === The objective of this study is to explore whether political connections have effects on segment reporting quality and whether establishment of audit committee has moderating effects on the relationship between political connections and segment reporting quality. IFRS 8, Operating Segments, identifies and discloses segment information by management approach, firms are expected to mitigate the difference between the disclosed financial reporting and the internal management report, and thus the financial reporting users may obtain more detailed information from the management and thus this so doing improves the information quality of financial reports. Taiwan’s Financial Accounting Standard No.41, The Disclosure of Segment Reporting, which follows IFRS 8 and has became effective since 2011. Using the sample of Taiwan in 2011, I find that firms with political connections have lower segment reporting quality, indicating that politically connected firms intend to conceal segment reporting information. Moreover, I find that audit committees with more financial experts are capable of improving segment reporting quality, and also mitigate the negative effects of political connections on segment reporting quality.
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