Corporate governance research in accounting and auditing: Insights, practice implications, and future research directions
Joseph V. Carcello, Dana R. Hermanson, and Zhongxia (Shelly) Ye
Auditing: A Journal of Practice & Theory, Vol. 30, No. 3 (August 2011), pp. 1-31
Since the mid-1990s, academic accounting researchers have examined the relation between board of directors and audit committee characteristics and a variety of accounting and auditing outcomes, including fraud, earnings management, earnings quality, auditor quality, and internal control effectiveness. Researchers consistently have found that good governance “on paper” (e.g., boards and audit committees with independent, expert members) consistently is associated with better accounting and auditing outcomes. However, reforms, such as the Sarbanes-Oxley Act, to improve the independence and expertise of corporate directors and the adoption of governance best practices now are causing many boards and audit committees to look similar. As a result, the ability to link good governance on paper with good accounting now is fading. We discuss a number of practice implications and avenues for research in the post-Sarbanes-Oxley environment. Overview
8 | Journal Publication - Outstanding Impact
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