Convergence in European Corporate Governance: The Audit Committee Concept

16 Pages Posted: 6 Dec 2005

See all articles by Paul A. Collier

Paul A. Collier

University of Exeter Business School - Department of Accounting

Mahbub Zaman

Hull University Business School

Abstract

This paper analyses recent corporate governance codes issued by 20 countries for evidence of convergence in corporate governance systems in Europe. The analysis shows that there has been a degree of convergence towards an Anglo-Saxon model of corporate governance as the audit committee concept is widely accepted in countries with both unitary and two-tier governance systems. Further, the latest audit committee recommendations in countries that have issued several governance codes show a strengthening of the recommendations for an audit committee over time in line with the Anglo-Saxon audit committee concept and convergence with the debate in the US and UK on issues such as the independence and financial expertise of members. However, consistent with the literature on the convergence of European corporate governance systems, at an operational level there is limited consistency in the recommended structure and role of audit committees.

Keywords: corporate governance, convergence, Europe, audit committees, governance codes

JEL Classification: G34, G38, M41, M47, M49

Suggested Citation

Collier, Paul A. and Zaman, Mahbub, Convergence in European Corporate Governance: The Audit Committee Concept. Corporate Governance: An International Review, Vol. 13, No. 6, pp. 753-768, November 2005. Available at SSRN: https://ssrn.com/abstract=856651 or http://dx.doi.org/10.1111/j.1467-8683.2005.00468.x

Paul A. Collier (Contact Author)

University of Exeter Business School - Department of Accounting ( email )

Exeter, EX4 4QJ
United Kingdom
01392 263238 (Phone)
01392 263210 (Fax)

Mahbub Zaman

Hull University Business School ( email )

Hull, HU6 7RX
United Kingdom

HOME PAGE: http://www.mahbubzaman.com

Register to save articles to
your library

Register

Paper statistics

Downloads
27
Abstract Views
2,636
PlumX Metrics