On the Demand for Independent and Active Audit Committees

Journal of Corporate Finance

Posted: 25 Jul 2000

See all articles by Stuart Gillan

Stuart Gillan

University of Georgia - Department of Finance

Daniel Deli

Securities and Exchange Commission (SEC)

Multiple version iconThere are 2 versions of this paper

Abstract

We study the role of the board by focusing on the composition and activity of the audit committee for a sample of 1,150 firms in 1998. Employing several proxies for the demand for accounting certification we find that those firms likely to demand greater certification are also those most likely to have completely independent and active audit committees. Specifically, we find that the probability of having a completely independent and active audit committee is positively related to firm size and leverage and negatively related to the level of firm growth opportunities and managerial ownership. Our findings are consistent with audit committee composition and activity being related to the demand for accounting certification.

Note: This is a description of the article and not the actual abstract.

JEL Classification: G32, M49, D23

Suggested Citation

Gillan, Stuart L. and Deli, Daniel, On the Demand for Independent and Active Audit Committees. Journal of Corporate Finance. Available at SSRN: https://ssrn.com/abstract=232920

Stuart L. Gillan (Contact Author)

University of Georgia - Department of Finance ( email )

Terry College of Business
Athens, GA 30602-6253
United States

Daniel Deli

Securities and Exchange Commission (SEC)

450 Fifth Street, NW
Washington, DC 20549-1105
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
1,736
PlumX Metrics