Board characteristics, accounting report integrity, and the cost of debt

被引:801
作者
Anderson, RC
Mansi, SA
Reeb, DM
机构
[1] Temple Univ, Fox Sch Business, Philadelphia, PA 19122 USA
[2] American Univ, Kogod Sch Business, Washington, DC 20016 USA
[3] Virginia Tech, Pamplin Coll Business, Blacksburg, VA 24061 USA
关键词
audit committee composition; board composition; corporate governance; financial statements; accounting information;
D O I
10.1016/j.jacceco.2004.01.004
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
Creditor reliance on accounting-based debt covenants suggests that debtors are potentially concerned with board of director characteristics that influence the integrity of financial accounting reports. In a sample of S&P 500 firms, we find that the cost of debt is inversely related to board independence and board size. We also find that fully independent audit committees are associated with a significantly lower cost of debt financing. Similarly, yield spreads are also negatively related to audit committee size and meeting frequency. Overall, these results provide market-based evidence that boards and audit committees are important elements affecting the reliability of financial reports. (C) 2004 Elsevier B.V. All rights reserved.
引用
收藏
页码:315 / 342
页数:28
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