Market Reaction to Voluntary Announcements of Audit Committee Appointments: The Effect of Financial Expertise

By W. Davidson, Biao Xie, Weihong Xu. 2004

266 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/4140c4f24b371e82d9092aff95f0d23f5258b4fc

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Citations in the corpus

Audit Committee Financial Experts: A Closer Examination Using Firm Designations (2006, background): “In addition, other studies find a significant positive stock price reaction when a financial expert is added to the audit committee (Davidson et al. 2004; DeFond et al. 2005).”
Risk Management and Corporate Governance: The Importance of Independence and Financial Knowledge for the Board and the Audit Committee (2005, unknown): “This conclusion does not support the definition of financial knowledge provided by the SOX nor the findings of Defond, Hann and Hu (2004) and Davidson et al. (2004). More importantly, this result suggests that the NYSE rule requiring at least one director with an accounting background is not necessa”
Ameliorating Conflicts Of Interest In Auditing: Effects Of Recent Reforms On Auditors And Their Clients (2006, background): “Prior studies suggest that audit committees are more effective at improving the quality of earnings if they have more members who are independent and possess financial expertise and if they meet more frequently (e.g., see Abbott, Park, & Parker, 2000; Abbott, Parker, & Peters, 2004; Andersen, Mansi,”
Audit committee characteristics and firm performance during the global financial crisis (2012, unknown): “The empirical evidence indicates that markets react more positively to the appointment of a new AC member who is an expert (Davidson et al. 2004; DeFond et al. 2005).”
Audit Committee, Underpricing of IPOs, and Accuracy of Management Earnings Forecasts (2008, unknown): “experts to their ACs ( Davidson et al. 2004; DeFond et al. 2005).”
Corporate Governance Quality, Audit Fees and Non-Audit Services Fees (2011, background): “financial reporting process more effectively, such as detecting material misstatements (Raghunandan et al., 2001; Davidson et al., 2004; and DeFond et al., 2005).”
Audit committee financial expertise, gender, and earnings management: Does gender of the financial expert matter? (2018, background): “Qi and Tian (2012) also found that the presence of a financial expert on the AC reduces earnings management while Davidson, Xie, and Xu (2004) reported significant positive stock price reaction when new members of the AC have financial expertise.”
The Effects of Financial Literacy on Sustainable Entrepreneurship (2021, background): “In fact, the financial literacy of the entrepreneur guarantees greater flexibility to the firm, and consequently, a better ability to adapt to new market conditions, leading the firm to higher and more sustainable results in the long term [66], as also demonstrated by research that positively correl”
Audit Committee Financial Expertise and Earnings Management: The Role of Status (2014, background): “Financial expertise is also associated with a lower likelihood of internal controls weaknesses (Krishnan, 2005) and is valued by market participants with a positive stock price reaction when firms disclose the appointment of a financial expert to the audit committee (Davidson et al., 2004; DeFond et”
How Does Financial Literacy Promote Sustainability in SMEs? A Developing Country Perspective (2019, background): “[37] also found an association between financial literacy and firm performance.”
Board Characteristics and Firm Performance: Case of Saudi Arabia (2012, background): “, 2001; Spira, 2002; Davidson et al., 2004). Some other authors argue that the larger size of AC may delay the decision making and cause avoidable debates (Yermack, 1996; Kalbers& Fogarty, 1996). While some other studies focus on the effectiveness of the AC rather than size, and they do not consider”