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ABSTRACT. Zheng and Cullinan write that the compensation committee manages the compensation schemes of top executives, and that the audit committee is charged with providing oversight of the financial reporting process and internal controls, and with managing the relationship with the external auditor. Persons claims that an independent audit committee contributes positively to ethical financial reporting and effective oversight of ethics programs. Felo and Solieri find a positive relationship between changes in independent audit committee financial experts and subsequent changes in analysts’ perceptions of corporate disclosures. (pp. 183–188)

JEL: G32, L15, M42

LUMINITA IONESCU
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Spiru Haret University

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