FINANCIAL REPORTING QUALITY

In this dissertation. I examine whether financial reporting quality increases following the appointment of an accounting expert to the audit committee. Prior literature documents positive cross-sectional associations between maintaining an accounting expert on the audit committee and financial reporting quality. Although this suggests that accounting expertise enhances the quality of a firm's financial reports, it is unclear whether financial reporting quality improves after appointing an accounting expert. Additionally, I explore how the strength of alternative governance provisions and the current expertise of the audit committee influence relations between appointing an accounting expert and changes in financial repOliing qua.l ity. I hypothesize that accounting experts possess the financial backgrounds needed to detect accounting manipulations and the reputational capital to warrant actions that limit exposure to financial reporting failures. Therefore, I predict that newly appointed IV accounting experts have the ability and incentive to strengthen financial reporting systems and increase the quality of financial reports. Furthermore. I predict tha