Determinants of Multiple Audit Committee Appointments

• In Event: Corporate Governance, CFOs, and Audit Committees

Abstract

This study examines factors that determine multiple audit committee memberships. Using a sample of 30,410 director-year observations during 1999 to 2010 period, we find that monitoring ability and the accounting knowledge of the audit committee member increases the likelihood of obtaining additional audit committee appointments. Further, industry experience and experience with the same auditor increases likelihood of increase in audit committee appointments. Taken together, these findings provide implications to standard- setters in evaluating whether regulations related to multiple audit committee membership are beneficial.

Authors

• So Yean Kwack, Temple University

• Jayanthi Krishnan, Temple University