Purpose

The purpose of this study is to investigate the association between certain audit committee characteristics like independence and financial expertise with financial reporting quality (FRQ) of the firms listed on the Tehran Stock Exchange (TSE).

Design/methodology/approach

The sample includes the 558 firm-year observations from companies listed on the TSE during the years 2012–2017, and the study’s hypotheses were tested using multivariate regression model based on panel data.

Findings

The authors find that audit committee independence has no significant effect on corporate FRQ, whereas audit committee's financial expertise significantly improves firms' FRQ. In other words, higher financial expertise of an audit committee can lead to an increase in its FRQ. The findings of the study are robust to alternate measures of FRQ, individual analysis of the research hypotheses for each year and endogeneity problem.

Originality/value

To the best of the authors’ knowledge, this is the first study to analyze the association between audit committee characteristics and FRQ in emerging capital markets, and so, the findings of the study not only extend the extant theoretical literature concerning the audit committee in developing countries including emerging capital market of Iran but also help investors, managers, capital market regulators, policymakers and audit profession regulators to make informed decisions.

中文翻译：

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审计委员会的特征是否可以改善新兴市场的财务报告质量？来自伊朗的证据

目的

本研究的目的是调查某些审计委员会特征（如独立性和财务专业知识）与在德黑兰证券交易所（TSE）上市的公司的财务报告质量（FRQ）之间的关联。

设计/方法/方法

该样本包括2012-2017年间在TSE上市的公司的558个公司年度观察结果，并使用了基于面板数据的多元回归模型对研究的假设进行了检验。

发现

作者发现，审计委员会的独立性对公司的FRQ没有显着影响，而审计委员会的财务专业知识则可以显着提高公司的FRQ。换句话说，审核委员会较高的财务专业知识可以导致其FRQ的增加。该研究的结果对于FRQ的替代方法，每年的研究假设的单独分析以及内生性问题具有鲁棒性。

创意/价值

据作者所知，这是第一项分析新兴资本市场中审计委员会特征与FRQ之间关系的研究，因此，研究结果不仅扩展了有关审计委员会在发展中的现有理论文献包括伊朗新兴资本市场在内的国家，也可以帮助投资者，管理人员，资本市场监管机构，政策制定者和审计行业监管机构做出明智的决定。