Audit Committee Chair Characteristics, Capital Structure, and Real Earnings Management

摘要

My dissertation consists of two essays. The first part of my dissertation empirically examines the relationship between female audit committee chair characteristics and real earnings management using different proxies of real earnings management. The different proxies for real earnings management are based on prior studies by Roychowdhury (2006). Findings from my first essay shows that the presence of a female chair characteristics on the audit committee constrains real earnings management. I find that female chair with prior auditor experience is significant for abnormal production. Specifically, I find that the presence of female audit committee chair with prior auditor experience reduces abnormal production. Similarly, I find that the presence of female audit committee chair, and chair with prior auditor experience is significant for abnormal discretionary expenses. I also find female audit committee chair significant for abnormal cash flow from operations. Specifically, firms with female audit committee chair, and chair with prior auditor experiences have higher abnormal discretionary expenses. Likewise, firms having female as an audit committee chair have higher abnormal cash flow from operations. This shows that audit committee chair characteristics plays an important role in constraining real earnings management.;In the second part of my dissertation, I empirically test to see if there is an association between the presence of female audit committee chair characteristics and capital structure. Findings from my second essay shows no significance between audit committee chair characteristics and capital structure.