On the Demand for Independent and Active Audit Committees

28 Pages Posted: 23 Apr 2005

See all articles by Daniel Deli

Daniel Deli

Securities and Exchange Commission (SEC)

Stuart Gillan

University of Georgia - Department of Finance

Multiple version iconThere are 2 versions of this paper

Date Written: May 2000

Abstract

We focus on the importance of audit committees in the contracting process. We find that the demand for independent and active audit committees increases with proxies capturing the demand for accounting certification. Specifically, the likelihood of a firm having a completely independent and active audit committee is negatively related to firm growth opportunities and managerial ownership and positively related to firm size and leverage.

Keywords: Accounting Certification, Audit Committee, Outside Directors

JEL Classification: G34, L14, M41

Suggested Citation

Deli, Daniel and Gillan, Stuart L., On the Demand for Independent and Active Audit Committees (May 2000). Available at SSRN: https://ssrn.com/abstract=704762 or http://dx.doi.org/10.2139/ssrn.704762

Daniel Deli (Contact Author)

Securities and Exchange Commission (SEC)

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

Stuart L. Gillan

University of Georgia - Department of Finance ( email )

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

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