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We relate the agency issues inherent in management buyouts and in earnings management. Income-reducing earnings management occurs prior to management buyouts. When insiders own small amounts of stock, outside monitoring mechanisms such as institutional ownership and Big Six audit firms reduce...
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lower support. In addition, when the AC is less effective in monitoring the financial reporting process, its members receive … lower shareholder approval, while other independent board members are less affected by these same financial reporting …
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. Audit committees are the “ultimate monitors” of firms' financial reporting processes. The SEC is interested in whether audit …
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to improvements in audit committee structure, diligence, and financial reporting quality. These results hold only in …
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This study focuses on U.S. shareholder derivative cases in which Audit Committee members were defendants. Three grounds for Audit Committee liability were alleged in those cases: (1) violation of the Fiduciary Duties of Care, Loyalty or Good Faith, which may include failure to provide proper...
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