This study seeks to determine whether audit committee compositional features are associated with the timeliness of financial reporting by Australian firms. Timeliness of financial reporting by firms, of which the length of an audit is a fundamental component, adds information content and impacts firm value, making an examination of audit report lag determinants important. Results indicate that audit committee members with financial expertise, prior audit committee experience and those who are independent are associated with shorter audit report lag. Results suggest that legislation mandating audit committee financial expertise and independence are effective also in improving the timeliness of financial reporting. More importantly, our results suggest that there may be benefits in constituting audit committees with other compositional features such as prior committee experience in overall efforts to improve the timeliness, and therefore quality, of financial reporting by firms.

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Using an Australian sample of 494 firm-year observations, this study finds that accounting financial expertise is the primary type of expertise that influences earnings conservatism, rather than nonaccounting financial expertise. The association between accounting financial expertise and conservatism holds only when the accounting financial expert(s) on audit committees is (are) independent. Overall, results suggest that audit committee accounting financial expertise is important in recognising the asymmetrical timeliness of losses. Findings provide a better understanding of the dynamics between audit committee financial expertise and earnings conservatism and demonstrate the importance of accounting financial expertise in improving financial reporting quality.

Purpose -The first objective of this study is to examine the nature and extent of intellectual capital (IC) information Australian hospitals disclose to their stakeholders (patients, general public, healthcare professionals) via the internet. The second objective is to examine whether four hospital characteristics influence the disclosure of IC-related information. Design/methodology/approach -Analysis reported in this study is based on IC disclosures by 128 hospitals on their internet web sites. IC disclosure is measured using an 85-item research constructed index that covers six major sub-categories. Measurement of IC disclosure was conducted during a four month period in the last third of 2005. Findings -It is found that whilst the incidence rate of hospitals disclosing IC information is high, the extent of IC disclosure is relatively low. The quantity of IC disclosure varied significantly between different IC sub-categories. In addition, the paper investigates possible determinants of variations in IC disclosure by Australian hospitals. Specifically, it is found that the quantity of IC information disclosed on a hospital web site varied according to the state location, designation as a private or public hospital, whether the hospital is specialized or general in its operations, and if the hospital is based in a city or regional location. A hospital's designation as being network or non-networked is not a significant determinant. Originality/value -Few studies have examined the disclosure of IC information by healthcare providers such as hospitals. No studies, to the knowledge of the authors, have examined the specific disclosure of IC information by hospitals on their internet web sites.

Purpose -The primary objective of this paper is to examine the association between the seven human-resource features (spanning three major themes: qualifications and credentials; business and initial public offering (IPO) launch experience; and diversity) of independent audit committee members and the level of underpricing. Design/methodology/approach -A sample of 410 Singapore IPOs listing on the stock exchange of Singapore from January 1, 1997 to December 31, 2006 was used. Findings -Empirical results overall suggest no overwhelming association between the human-resource features of IPO audit committees and underpricing. Rather, the findings suggest only some specific human-resource features (e.g. presence of an independent audit committee member with accounting qualifications and credentials) are of significance. Others (e.g. gender diversity of independent audit committee members) have little or no association. Also, results do not suggest a major category of human-resource features (i.e. qualifications and credentials, business and IPO launch experience, or diversity) is associated with underpricing. Time also does not appear to affect the results. Practical implications -As human-resource features tended to increase rather than lower an IPO's cost of capital, or had not influence at all, our findings generally do not support some policymakers' arguments for the introduction of mandated uniform audit committee structures. Rather, the results support flexibility to determine the properties of the audit committee. Originality/value -This study is one of the first (particularly outside the USA) to investigate linkages between audit committee human-resource features and underpricing. Whilst acknowledging some caveats associated with this study, such as focusing on a single nation, this paper contributes relevant insights to the debate about audit committee effectiveness.

Purpose -The primary purpose of this paper is to investigate the association between intellectual capital disclosures in initial public offerings (IPOs) and post-issue stock performance. Design/methodology/approach -The analysis is based on a sample of 259 IPOs listing on the Singapore Stock Exchange (SGX) between July 1, 1999 and June 30, 2005. Post-issue stock performance is measured using market-adjusted buy-and-hold returns across a 500 trading day observation window after listing. Intellectual capital disclosure is measured using an 81-item index. Findings -The study's major finding is a negative association between the level of intellectual capital disclosure in IPO prospectuses and post-issue stock performance. The negative association persists regardless of industry type but is stronger for small IPOs relative to larger counterparts.Research limitations/implications -The study includes only Singapore IPOs within a specific timeframe concentrating on a single disclosure mechanism. Furthermore, the analysis focuses on an association rather than causal relationship. Practical implications -The findings imply greater intellectual capital prospectus disclosure may contribute to investor over-optimism leading to higher IPO mispricing. As information becomes available post-issue, and over-optimistic expectations are not immediately met, investors aggressively discount shares leading to greater negative post-issue stock performance for high IC disclosing IPOs. Pre-listing owners/management may exploit the speculative environment generating higher wealth transfers from investors. Policymakers may need to introduce (some) uniform intellectual capital disclosure requirements to reduce speculative market conditions. Originality/value -This paper documents the first study to provide empirical evidence of the association between intellectual capital disclosures and post-issue stock performance; thus, it offers a new path for future intellectual capital disclosure research and understanding.

Purpose -Excessive initial trading day returns (termed underpricing (UP)) and poor long-run performance (LRP) are two well-documented anomalies associated with initial public offerings (IPOs).The primary objective of this study is to empirically test the association between the extent of intellectual capital (IC) disclosure in the prospectus of an unseasoned IPO and: UP and LRP. Design/methodology/approach -Ex ante uncertainty surrounding IC -recognized as the pivotal resource underlying a firm's future value creation and sustainable competitive advantage in the "new economic" era -is likely to be high. Unseasoned IPOs world-wide are increasing with many IPOs heavily IC-reliant. Given ex ante uncertainty surrounding IC, there is an escalating need to understand how disclosure of information related to IC can reduce an IPO's cost of capital (i.e. UP) and provide an indication of LRP. The analysis is based on a sample of 228 Singapore IPOs listing during the period 1997-2003. IC disclosure (ICDisc) in IPO prospectuses is measured using an 81-item researcher constructed disclosure index. Findings -Empirical findings indicate, contrary to expectations, a positive (negative) ICDisc-UP (ICDisc-LRP) association. Practical implications -It is the opinion that regulators, scholars and practitioners alike need to pay attention to developing a responsible model for reporting IC information so as to prevent a potentially unhealthy speculative environment driven by over-optimism. Originality/value -The study is the first to simultaneously investigate the linkage between ICDisc and UP and: LRP.

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