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Audit Committee Membership ‐ A New Zealand Perspective

Elizabeth Rainsbury (Associate Head of the School of Accountancy, Law and Finance, Unitec New Zealand, Auckland, New Zealand)

Pacific Accounting Review

ISSN: 0114-0582

Article publication date: 1 July 2004



This study examines factors related to audit committee membership for a sample of large New Zealand listed companies. This study reveals that non‐executive directors who are independent, and directors with financial expertise, are more likely to be members of audit committees. The results are consistent with the New Zealand Securities Commission’s corporate governance guidelines for audit committees of New Zealand listed companies. However, in the current New Zealand regulatory environment, directors with accounting expertise can include non‐executives affiliated with the firm. In these situations the financial expert is not independent. Remuneration committee members are found more likely to be members of the audit committee. This may be a result of their power and influence or be due to the skills they bring. The number of years that directors serve on the board, the number of other directorships they hold, and the number of shares they own in the company are not related to audit committee membership.



Rainsbury, E. (2004), "Audit Committee Membership ‐ A New Zealand Perspective", Pacific Accounting Review, Vol. 16 No. 2, pp. 45-69.



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Copyright © 2004, Emerald Group Publishing Limited

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