The Link Between Audit Committees, Corporate Governance Quality and Firm Performance
Author | : Patrick Velte |
Publisher | : |
Total Pages | : |
Release | : 2016 |
Genre | : |
ISBN | : |
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This literature review evaluates 146 empirical research studies on audit committees (AC) composition and resources which focus on the period after the Sarbanes Oxley Act (SOX). I will briefly introduce the theoretical, normative and empirical AC framework that comprises an adequate structure of the state-of-the-art of empirical research in this field. This is followed by a discussion of AC monitoring process which aims to enhance corporate governance quality, and is structured as follows: (1) financial reporting quality; (2) internal audit quality and (3) external audit quality. I will then evaluate the impact of AC on (4) firm performance. I will summarize the key findings in each area, and provide a description of the analyzed proxies for corporate governance quality and firm performance. Finally, I will discuss recommendations for future empirical AC research activities.