Financial expertise of directors

Internal Audit, Board of Directors and Financial Reporting Quality

High-quality internal audit is expected to lead to high-quality financial reporting. High-quality financial reporting expresses itself in earning quality. Earning quality has been playing a key role in capital market for a long time. Finance users pay special attention to earning quality because they make their decision based on it. On the other hand, the market economy will experience awful, i...

The Social Value of Financial Expertise The Social Value of Financial Expertise

I study expertise acquisition in a model of trading under asymmetric information. I propose and implement a method to measure r, the ratio of the marginal social value to the marginal private value of expertise. This can be decomposed into three sufficient statistics: traders’ average profits, the fraction of bad assets among traded assets and the elasticity of good assets traded with respect t...

The Social Value of Financial Expertise

I study a model of trading under asymmetric information where traders can acquire expertise to become better informed. Within the context of this model, I propose and implement a method to estimate the ratio of the marginal social value to the marginal private value of expertise. More expert traders get rents because they can choose which assets to trade and they add social value because by cha...

Consequences of Financial Reporting Failure for Outside Directors:

Industry specialist auditors, outsider directors, and financial analysts

This study investigates the relationships among industry specialist auditors, outside directors, and financial analysts. Specifically, we examine the effect of analyst coverage on the association between auditor industry specialization and outside directorship. We find that outside directors are less likely to hire industry specialist auditors for firms with high analyst coverage than for firms...