Does how an audit committee member became a financial expert matter?

What is it about?

We find that audit committee financial expertise based from accounting experience is associated with timelier accounting information. We also find that accounting expertise gained from public accounting experience is associated with timelier financial reporting; however, accounting expertise gained from CFO experience is not.

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Why is it important?

Our results are important for two reasons. First, our results suggest that audit committee accounting financial expertise contributes to audit committee effectiveness by improving the timeliness of financial information. Second, our findings highlight how personal characteristics of accounting financial experts influence contributions toward audit committee effectiveness.