| Summary: | 碩士 === 國立臺灣大學 === 會計學研究所 === 104 === This study examines if the establishment and quality of an audit committee affect firms’ level of earnings management. The subjects of this study are those non-financial companies listed in Taiwan Stock Exchange and Taipei Exchange that established audit committee in the period between 2007 and 2012. Some of those firms that did not establish audit committee in the same period of time are employed as control group.The results show that the level of discretionary accruals significantly dropped after firms establishing audit committee.
To address the issue whether the quality of audit committee affects firms’ level earnings management, this study measures quality of audit committee using five indicators, scale of the audit committee, member’s finance or accounting expertise, convener’s finance or accounting loading, number of meetings, and the average attendance rate of member. This study documents that the scale of the audit committee and number of meetings have significantly negative correlation with discretionary accruals.
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