The Association between Audit Committee Meeting Frequency and Earnings Response Coefficient

• Main Authors: Chiang, Chung-Wei, 蔣中瑋
• Other Authors: Lee, Jan-Zan
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/88530235133450327105

碩士 === 國立臺北大學 === 會計學系 === 101 === The audit committee system has been introduced into Taiwan since January 2007. The Taiwan Securities and Exchange Act has regulated that all public company should set up an audit committee or a supervisor. According to article 7 of the Regulations Governing the Exercise of Powers by Audit Committees of Public Companies, the audit committee shall meet at least quarterly. The operations of the audit committee, such as meeting frequencies, the rate of attendance of each independent director, or any other matters that require reporting must be published in annual report in order to follow the Regulations Governing Information to be Published in Annual Reports of Public Companies Article 10 as well. Previous literatures informed that audit committee can strengthen the company's internal control, company’s performance, and ensure the quality of financial reports. The Audit Committee meeting frequencies were studied by scholars as well, and the studies showed higher meeting frequencies will improve the quality of the financial reports and the accuracy of disclosure content. In addition, some studies found a positive correlation between the establishment of audit committee and earnings-return. The purpose of this study is to examine the association between audit committee meeting frequency and earnings response coefficient on investor perception. Listed publicly companies in Taiwan with audit committee from 2007 to 2011 are used as a sample. Empirical results don’t show a significant positive correlation between earnings response coefficient and audit committee meeting frequency. The investor’s perspective on the company’s share price is not affected by the audit committee meeting frequency.