Audit Committee Effectiveness and Earnings Management Among Publicly Listed Firms in Kenya

SEISENSE Journal of Management

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Field Value
Title Audit Committee Effectiveness and Earnings Management Among Publicly Listed Firms in Kenya
Creator Kapkiyai, Collins
Cheboi, Josephat
Komen, Joyce
Subject Earnings Management
Audit Committee Effectiveness
Audit Committee Independence
Audit Committee Meeting frequency
Audit Committee Financial Expertise
Description Objective: The paper sought to investigate the role of an effective audit committee in controlling earnings management practices.
Design / Methodology: A panel data sourced from the audited financial reports of firms listed at the Kenyan Nairobi Securities Exchange for the periods between 2004 and 2017 were analyzed using a panel regression model.
Findings: Audit committee effectiveness proved an important monitoring mechanism for earnings management. The independence, Meeting frequency, and financial expertise of the audit committee evidenced a negative and significant effect on earnings management.
Practical Implications: Firms need to ensure that their audit committees operate effectively. This is achieved through enhancing their independence, ensuring optimal meeting frequency, and a higher number of members with financial expertise for fewer earnings management.
Originality: The paper suggests the ways through which audit committee effectiveness can be enhanced to reduce earnings management amid rampant global financial scandals.
Date 2020-02-28
Type info:eu-repo/semantics/article
Peer Reviewed Article
Format application/pdf
Source SEISENSE Journal of Management; Vol 3 No 2 (2020): SEISENSE Journal of Management; 31-44
Language eng
Rights Copyright (c) 2020 Collins Kapkiyai, Josephat Cheboi, Joyce Komen

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