The Accounting Quality of Firms that Voluntarily Adopted Audit Committee

This study examines the difference in accounting quality between companies that voluntarily introduced the Audit Committee and those that did not. The explanatory variable is the voluntary introduction of the audit committee. As the dependent variable, accounting quality measured by the quality of accruals was used. In the additional analysis, whether or not to correct the business report, which is a direct measurement, was used as a dependent variable. The period of analysis is from 2000 to 2012. Among the companies listed on the stock market, the analysis was conducted on 1010 firm-year data that can identify accounting quality among companies that introduced the Audit Committee. As a result of the analysis, the accounting quality measured by the quality of accruals increases for companies that voluntarily introduce the Audit Committee. This can be interpreted as a high degree of information transparency of companies that voluntarily introduced the Audit Committee. In the additional analysis, it was found that companies that voluntarily introduced the Audit Committee had a negative effect on the revision of the business report. When the Audit Committee was voluntarily introduced, it was interpreted as reducing the correction of the business report by reducing the possibility of errors related to the disclosure of the business report. On the other hand, when interpreting the analysis results, it is necessary to take into account the effect of the asset scale of the sample.