부산대학교 도서관

Using firms listed in the Taiwan Stock Exchange and Over-The-Counter from 2007 to 2010 as a sample, this study examined the relationship between determinants of voluntary formation of audit committee and the quality of audit committee. Audit committee quality was measured using a comprehensive indicator comprising the following six indicators: the size of the audit committee, the numbers of member with expertise in accounting or finance, expertise in corporate governance, frequency of meetings, the attendance of member, and whether the convener has expertise in accounting or finance. We found that firms with lower ownership of directors and supervisors, larger board size, CEO non-duality, superior operating performance, issuance of securities overseas, non-government-owned and the electronics industry are associated with the voluntary formation of audit committee. We also determined that higher quality audit committee tend to be found in firms with higher debt ratio, higher ownership of institution investors, larger board size and the electronics industry.