Iranian Financial Engineering Association(IFEA) International Journal of Finance & Managerial Accounting 2588-4379 10 36 2000 01 01 Audit Committee, External Auditor, and Financial Reporting Quality in Indian Corporate Sector 169 190 23381 10.30495/ijfma.2023.56632.1518 EN Nasrollah Takhtaei Department of Accounting, Dezful Branch, Islamic Azad University, Dezful, Iran Jawahar Lal Formerly Professor of Accounting, Department of Commerce, Delhi School of Economics, University of Delhi, Delhi - 110007, INDIA Sanjay K Jain Professor of Marketing and International Business, Department of Commerce, Delhi School of Economics, University of Delhi, Delhi - 110007, INDIA Journal Article 2020 11 07 This study empirically examines the association between corporate governance and<br />financial reporting quality in Indian corporate sector. In this regard, corporate<br />governance has been measured by characteristics of two mechanisms, namely audit<br />committee and external auditors as external mechanism. Furthermore, accruals quality<br />as attribute of earnings quality has been used as the proxy for financial reporting<br />quality. This study uses 1250 firm-year observations from a sample of 250 firms drawn<br />from top 500 Indian companies listed on National Stock Exchange (NSE) over a fiveyear period from 2008 to 2012. In order to test developed hypotheses, panel data<br />regression with has been employed to determine the influence of corporate governance<br />characteristics on financial reporting quality measured by earnings quality attributes.<br />With regard to audit committee characteristics, this study provides some evidence that<br />although audit committee size, and audit committee independence are found to be<br />significantly related to financial reporting quality, audit committee meetings and audit<br />committee accounting expertise have no significant relationship with financial reporting<br />quality. Regarding external auditor, the findings demonstrate that contradictory to the<br />expectation, audit fee is not significantly associated with financial reporting quality. The<br />results for last hypothesis show that non-audit fee ratio has a negative and significant<br />relationship with financial reporting quality. The results are also robust to additional test<br />using year and industry as dummy variables. http://www.ijfma.ir/article_23381_eb72d013ce941d098d78e1ed837a7b92.pdf