The association between corporate boards, audit committees, and management earnings forecasts: An empirical analysis

• 成果类型: Article
• 署名作者: Karamanou, I; Vafeas, N
• 署名单位: University of Cyprus
• 刊物名称: JOURNAL OF ACCOUNTING RESEARCH
• ISSN/ISSBN: 0021-8456
• DOI: 10.1111/j.1475-679X.2005.00177.x
• 发表日期: 2005
• 页码: 453-486
• 关键词: discretionary disclosure; information asymmetry; voluntary disclosure; firm performance; market valuation; OWNERSHIP; CONSEQUENCES; prices; return

摘要

We study how corporate boards and audit committees are associated with voluntary financial disclosure practices, proxied here by management earnings forecasts. We find that in firms with more effective board and audit committee structures, managers are more likely to make or update an earnings forecast, and their forecast is less likely to be precise, it is more accurate, and it elicits a more favorable market response. Together, our empirical evidence is broadly consistent with the notion that effective corporate governance is associated, with higher financial disclosure quality.