By employing a Heckman two-stage selection model, we identify whether employing a financial expert with or without accounting expertise on the audit committee is optimal and how earnings quality varies across these optimal and suboptimal choices. Using four earnings quality measures...

Ever since Sarbanes-Oxley, a growing body of research has focused on the roles played by the audit committee. However, few theoretical studies exist to guide this research. In this study, we focus on the audit committee’s role in overseeing internal controls and the impact of whether or not...