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Convergence in European Corporate Governance: the audit committee concept

Author

Listed:
  • Paul Collier
  • Mahbub Zaman

    (Accounting & Finance at the Manchester Business School, University of Manchester.)

Abstract

This paper analyses recent corporate governance codes issued by 20 countries for evidence of convergence in corporate governance systems in Europe. The analysis shows that there has been a degree of convergence towards an Anglo-Saxon model of corporate governance as the audit committee concept is widely accepted in countries with both unitary and two-tier governance systems. Further, the latest audit committee recommendations in countries that have issued several governance codes show a strengthening of the recommendations for an audit committee over time in line with the Anglo-Saxon audit committee concept and convergence with the debate in the US and UK on issues such as the independence and financial expertise of members. However, consistent with the literature on the convergence of European corporate governance systems, at an operational level there is limited consistency in the recommended structure and role of audit committees. Copyright Blackwell Publishing Ltd 2005.

Suggested Citation

  • Paul Collier & Mahbub Zaman, 2005. "Convergence in European Corporate Governance: the audit committee concept," Corporate Governance: An International Review, Wiley Blackwell, vol. 13(6), pages 753-768, November.
  • Handle: RePEc:bla:corgov:v:13:y:2005:i:6:p:753-768
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    References listed on IDEAS

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    1. Michael C. Jensen, 2010. "Value Maximization, Stakeholder Theory, and the Corporate Objective Function," Journal of Applied Corporate Finance, Morgan Stanley, vol. 22(1), pages 32-42.
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    Citations

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    Cited by:

    1. G. Sarens & I. De Beelde, 2006. "Internal audit: the expert in providing comfort to the audit committee. The case of risk management and internal control," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 06/428, Ghent University, Faculty of Economics and Business Administration.
    2. Melinda Timea FÜLÖP & Mirela-Oana PINTEA, 2014. "Effects Of The New Regulation And Corporate Governance Of The Audit Profession," SEA - Practical Application of Science, Fundația Română pentru Inteligența Afacerii, Editorial Department, issue 4, pages 545-554, July.
    3. Karin Jonnergård & Anna Stafsudd, 2011. "The making of active boards in Swedish public companies," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 15(1), pages 123-155, February.
    4. Jeanjean, Thomas & Stolowy, Hervé, 2009. "Determinants of board members' financial expertise -- Empirical evidence from France," The International Journal of Accounting, Elsevier, vol. 44(4), pages 378-402, December.
    5. Brian G. M. Main & Calvin Jackson & John Pymm & Vicky Wright, 2008. "The Remuneration Committee and Strategic Human Resource Management," Corporate Governance: An International Review, Wiley Blackwell, pages 225-238.
    6. Johnathan Magrane & Sue Malthus, 2010. "Audit committee effectiveness: a public sector case study," Managerial Auditing Journal, Emerald Group Publishing, vol. 25(5), pages 427-443, May.
    7. Nicolas Vlaminck & Gerrit Sarens, 2015. "The relationship between audit committee characteristics and financial statement quality: evidence from Belgium," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 19(1), pages 145-166, February.
    8. Greco, Giulio, 2012. "Governance codes and types of issuer. An empirical research on a global sample," MPRA Paper 37854, University Library of Munich, Germany.
    9. Niamh M. Brennan & Jill Solomon, 2008. "Corporate governance, accountability and mechanisms of accountability: an overview," Accounting, Auditing & Accountability Journal, Emerald Group Publishing, vol. 21(7), pages 885-906, September.
    10. Nedelchev, Miroslav, 2012. "Corporate governance of financial intermediaries: convergence and divergence," MPRA Paper 53939, University Library of Munich, Germany.
    11. Akeel M. Lary & Dennis W. Taylor, 2012. "Governance characteristics and role effectiveness of audit committees," Managerial Auditing Journal, Emerald Group Publishing, vol. 27(4), pages 336-354, April.
    12. Marlene Davies, 2009. "Effective working relationships between audit committees and internal audit—the cornerstone of corporate governance in local authorities, a Welsh perspective," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 13(1), pages 41-73, May.
    13. Stuart Turley & Mahbub Zaman, 2007. "Audit committee effectiveness: informal processes and behavioural effects," Accounting, Auditing & Accountability Journal, Emerald Group Publishing, vol. 20(5), pages 765-788, September.
    14. Marlene Davies & Bernadette Schlitzer, 2008. "The impracticality of an international “one size fits all” corporate governance code of best practice," Managerial Auditing Journal, Emerald Group Publishing, vol. 23(6), pages 532-544, June.
    15. Giulio Greco & Silvia Ferramosca & Luciano Marchi, 2015. "Governance codes and types of issuer: a global study," International Journal of Business Governance and Ethics, Inderscience Enterprises Ltd, vol. 10(1), pages 28-56.
    16. Maria Consuelo Pucheta-Martínez & Cristina de Fuentes, 2007. "The Impact of Audit Committee Characteristics on the Enhancement of the Quality of Financial Reporting: an empirical study in the Spanish context," Corporate Governance: An International Review, Wiley Blackwell, pages 1394-1412.
    17. Dorota Dobija, 2015. "Exploring audit committee practices: oversight of financial reporting and external auditors in Poland," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 19(1), pages 113-143, February.
    18. repec:dau:papers:123456789/7549 is not listed on IDEAS
    19. Pieter-Jan Bezemer & Gregory F. Maassen & Frans A. J. Van den Bosch & Henk W. Volberda, 2007. "Investigating the Development of the Internal and External Service Tasks of Non-executive Directors: the case of the Netherlands (1997-2005)," Corporate Governance: An International Review, Wiley Blackwell, pages 1119-1129.
    20. Kwansagool Tengamnuay & Pamela Stapleton, 2009. "The role of the audit committee in Thailand: a mature monitoring mechanism or an evolving process?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 13(3), pages 131-161, August.
    21. Barbara, Petracci, 2011. "Trading when you cannot trade: Blackout periods in Italian firms," International Review of Law and Economics, Elsevier, vol. 31(3), pages 196-204, September.
    22. Nedelchev, Miroslav, 2012. "Корпоративно Управление На Финансови Посредници: Конвергенция И Дивергенция
      [Corporate Governance Of Financial Intermediaries: Convergence And Divergence]
      ," MPRA Paper 52268, University Library of Munich, Germany.
    23. Pieter-Jan Bezemer & Gregory F. Maassen & Frans A. J. Van den Bosch & Henk W. Volberda, 2007. "Investigating the Development of the Internal and External Service Tasks of Non-executive Directors: the case of the Netherlands (1997-2005)," Corporate Governance: An International Review, Wiley Blackwell, pages 1119-1129.
    24. Bahram Soltani & Christian Maupetit, 2015. "Importance of core values of ethics, integrity and accountability in the European corporate governance codes," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 19(2), pages 259-284, May.

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