Resumen de Board Members With Style: The Effect of Audit Committee Members and Their Personal Styles on Financial Reporting Choices
This article studies whether audit committee members and chairpersons exhibit individual-specific “styles” that affect corporate financial reporting practices. I track 2,941 audit committee members and 683 chairpersons across firms over time, and test whether member (chair)-specific factors explain firms’ accounting choices. I find that member and chairperson “style” (captured by fixed effects) is significant in explaining a firm’s probability of accounting misstatements and earnings management, and the effects are not explained away by observable member (chairperson) characteristics found by prior literature, or by the effects of CEOs or CFOs.
