Dr. Liu Ming is currently an
Associate Professor of Accounting at the Faculty of Business
Administration of the University of Macau, the Coordinator
of the Bachelor of Science in Accounting Programme at the
University of Macau (UM's flagship programme) and a member
of the Senate of the University of Macau. Dr. Liu teaches
financial accounting, management accounting, auditing,
finance, tourism accounting and other courses, engages in
academic and policy research in the fields of accounting,
finance, economics, management, corporate governance,
tourism and other fields, publishes dozens of international
academic journal papers, books and translations, undertakes
research projects such as the Higher Education Fund of the
Macao Special Administrative Region, the University of
Macau, and Hong Kong Baptist University. Dr. Liu has
received the Research Award and the Service Award from the
Faculty of Business Administration of UM, won the Best Paper
Awards at international academic conferences for many times,
and served as a reviewer for several international academic
journals. Dr. Liu serves as a doctoral student supervisor.
Abstract: This study examines
whether lead independent directors (LIDs) serving on a firm’s
audit committees (ACs) could mitigate management opportunistic
tone disclosure. By using a sample of 14,403 firm-year
observations of U.S.-listed firms from 2003 to 2019, our results
suggest that the presence of LID on AC could mitigate managerial
tone manipulation. Our results further show that LIDs with
financial expertise have a more substantial impact on mitigating
managerial tone manipulation. In addition, this mitigating
effect is more pronounced when managers have greater tone
manipulation incentives. Moreover, further channel analyses shed
light on that the enhanced information accessibility mechanism,
improved status, and AC-served LIDs’ commitment facilitate the
mitigating effect. Our results still hold after conducting a
battery of robustness checks and controlling for endogeneity.
Keywords: Lead independent
directors; Tone management; Textual analysis; Corporate
governance; Audit Committee
University of Macau, China
Dr. Liu Ming is currently an Associate Professor of Accounting at the Faculty of Business Administration of the University of Macau, the Coordinator of the Bachelor of Science in Accounting Programme at the University of Macau (UM's flagship programme) and a member of the Senate of the University of Macau. Dr. Liu teaches financial accounting, management accounting, auditing, finance, tourism accounting and other courses, engages in academic and policy research in the fields of accounting, finance, economics, management, corporate governance, tourism and other fields, publishes dozens of international academic journal papers, books and translations, undertakes research projects such as the Higher Education Fund of the Macao Special Administrative Region, the University of Macau, and Hong Kong Baptist University. Dr. Liu has received the Research Award and the Service Award from the Faculty of Business Administration of UM, won the Best Paper Awards at international academic conferences for many times, and served as a reviewer for several international academic journals. Dr. Liu serves as a doctoral student supervisor.
Abstract: This study examines whether lead independent directors (LIDs) serving on a firm’s audit committees (ACs) could mitigate management opportunistic tone disclosure. By using a sample of 14,403 firm-year observations of U.S.-listed firms from 2003 to 2019, our results suggest that the presence of LID on AC could mitigate managerial tone manipulation. Our results further show that LIDs with financial expertise have a more substantial impact on mitigating managerial tone manipulation. In addition, this mitigating effect is more pronounced when managers have greater tone manipulation incentives. Moreover, further channel analyses shed light on that the enhanced information accessibility mechanism, improved status, and AC-served LIDs’ commitment facilitate the mitigating effect. Our results still hold after conducting a battery of robustness checks and controlling for endogeneity.
Keywords: Lead independent directors; Tone management; Textual analysis; Corporate governance; Audit Committee