Title
An Empirical Analysis of Audit Committee Member Resignations Due to Policy Disputes with the Management
Document Type
Article
Publication Date
2015
Keywords
Audit committee resignations, policy disputes, commitments, logistic regression, auditors
Disciplines
Accounting | Organizational Behavior and Theory
Abstract
Audit Committee (AC) resignations due to policy disputes may imply that the company is financially weak. Statistical analyses are performed to examine financial attributes of firms with pre-crisis (pre- 2008) and post-crisis (2008 and after) resignations. Univariate test results indicate that the companies where AC resignations occurred pre-crisis are smaller and have higher total asset turnover ratios and post-crisis resignations are associated with more unqualified audit opinions. Multivariate logit results indicate that size, auditor opinion, intangible assets to total ratios, and inventory turnover ratios are significantly different between the two groups. Tobin’s Q is marginally different between the two groups.
Publication Title
Journal of Accounting and Finance
Volume
15
Issue
7
First Page
94
Last Page
102
ISSN
2158-3625
Recommended Citation
Ragothaman, S., and Cornelsen, E. (2015). An Empirical Analysis of Audit Committee Member Resignations Due to Policy Disputes with the Management. Journal of Accounitng and Finance, 15(7), 94-102.