英文摘要 |
Using Tobin’s Q as a proxy for firm value, this study examines the effects of the establishment and quality of audit committees (AC hereafter) on firm value. Audit committee quality was measured using a comprehensive indicator comprising the following six indicators: the size of the AC, whether the convener has expertise in finance (or accounting), the numbers of member with expertise in finance (or accounting) and expertise in corporate governance, frequency of meetings, and the attendance of members. Among firms with independent directors, we find that firms establishing AC have significantly higher firm value than those establishing supervisors. In addition, we find that firms with better AC quality have higher firm value. Finally, we also find that firm value is positively correlated with the size of AC, whether the convener has expertise in finance (or accounting), and members’ attendance, but negatively correlated with the number of members with expertise in finance (or accounting). |