| This dissertation examines the contribution of audit committee characteristics; independence, financial expertise, firm provided support of the audit committee, and oversight to audit committee monitoring effectiveness. An agency framework of the firm and the mandates of the Sarbanes-Oxley legislation motivate the selection of these characteristics. The study uses a proprietary database of survey responses by audit committee directors and firms' corporate secretaries, in a period just prior to and an initial period post-compliance with the Sarbanes-Oxley Act. Results provide evidence that an independent audit committee requires firm-specific financial knowledge. A possible explanation is this type of competency replaces the valuable contribution otherwise provided by inside directors. In certain settings, firm provided support in the form of training and sufficiency of information also improves monitoring effectiveness. The findings have implications for evaluating the efficacy of the Sarbanes-Oxley legislation. |
