The link between audit committees and corporate governance quality a normative and empirical overview for the US- and German capital market

Abstract

Audit committees are a main instrument to increase corporate governance for US- and German listed corporations. The following analysis gives a normative and empirical overview of possible links between audit committees and corporate governance variables (capital costs and market reactions, earnings management and external management reporting, management fraud and external audit). In this context the job specification of audit committee members (independent financial experts) will be focused.