Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

The Determinants of Audit Committee Independence and Activity: Evidence from the UK

The Determinants of Audit Committee Independence and Activity: Evidence from the UK We investigate the determinants of audit committee independence and activity in UK firms. We employ panel data analysis for non‐financial films that provide the required information for the period from 2003 to 2008. Our findings show that audit committees are more independent when firms have large boards and more insider ownership. In addition, we detect that large firms place less demand on audit independence. This study also provides new evidence that firms with more free cash flows require more audit independence. Finally, firms with large audit committees and large boards that meet more frequently are active and demand more audit committee meetings. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Auditing Wiley

The Determinants of Audit Committee Independence and Activity: Evidence from the UK

International Journal of Auditing , Volume 15 (2) – Jul 1, 2011

Loading next page...
 
/lp/wiley/the-determinants-of-audit-committee-independence-and-activity-evidence-AzKO6kc4cB
Publisher
Wiley
Copyright
© 2011 Blackwell Publishing Ltd
ISSN
1090-6738
eISSN
1099-1123
DOI
10.1111/j.1099-1123.2011.00429.x
Publisher site
See Article on Publisher Site

Abstract

We investigate the determinants of audit committee independence and activity in UK firms. We employ panel data analysis for non‐financial films that provide the required information for the period from 2003 to 2008. Our findings show that audit committees are more independent when firms have large boards and more insider ownership. In addition, we detect that large firms place less demand on audit independence. This study also provides new evidence that firms with more free cash flows require more audit independence. Finally, firms with large audit committees and large boards that meet more frequently are active and demand more audit committee meetings.

Journal

International Journal of AuditingWiley

Published: Jul 1, 2011

References