The Role of Audit Committee Members' Experience and Financial Expertise on Earnings Quality

One of the important tasks of accounting knowledge is to optimize the science of accounting information users and financial statements. To improve the quality of financial reporting, improving the corporate governance system is inevitable. One of the mechanisms of corporate governance is the audit committee. The understanding and knowledge of experienced members of the Audit Committee results in improved earnings quality and financial reporting. However, due to the low background of the Audit Committee (effective since 2012), it is not possible to judge with certainty the relationship between the financial experience of the Audit Committee members and the quality of earnings. Accordingly, the purpose of the present study is to investigate the impact of financial experience of audit committee members on earnings quality. The statistical population of this research includes all companies listed in 2012-2017. Sample size was selected by systematic elimination method of over 141 companies. The research method is based on multiple regressions and combined data (panel data) using conventional least squares method. Research evidence suggests that the financial experience of audit committee members has no significant effect on corporate earnings quality.