Article
Audit Committee Incentive Compensation and Accounting Restatements
Contemporary Accounting Research
Document Type
Article
Publication Date
1-1-2008
Abstract
This study investigates the association between audit committee incentive-based compensation and financial reporting failures reported in restatements. Specifi- cally, we evaluate whether short-term and long-term incentive compensation (i.e., short-term and long-term stock option grants) for audit committee members is associated with accounting restatements due to error or fraud. 1 We use accounting restatements as a proxy for financial reporting failure because they are relatively objective measures of reporting failure (e.g., Government Accountability Office [GAO] 2002, 2006; Myers, Myers, Palmrose, and Scholz 2005) and because they are increasingly common and costly events that are linked to audit committee member oversight performance.
Inclusive pages
965–992
ISBN/ISSN
0823-9150
Copyright
Copyright © 2008, Canadian Academic Accounting Association
Publisher
John Wiley & Sons
Peer Reviewed
Yes
Disciplines
Citation Information
Deborah S. Archambeault, F. Todd DeZoort and Dana R. Hermanson. "Audit Committee Incentive Compensation and Accounting Restatements" Contemporary Accounting Research Vol. 25 Iss. 4 (2008) Available at: http://works.bepress.com/deborah-archambeault/7/
Permission documentation is on file.