An exploratory study of adopting requirements for audit committees for non‐US commercial bank registrants: an empirical analysis of foreign equity investment

Abstract

This study examines whether the presence of audit committees for US commercial bank registrants (SEC Form 10‐K filers) significantly affects the likelihood of adoption by certain non‐US commercial bank registrants (SEC Form 20‐F filers). Results of a logistic regression analysis of 31 US commercial bank registrants with audit committees and 31 non‐US commercial bank registrants without audit committees suggest that demand for oversight protection in the sample non‐US commercial banks is more likely to increase as the total market capitalization (size) increases. Additionally, this paper investigates whether the presence of audit committees for non‐US commercial bank registrants (Form 20‐F filers) increases their transparency with a concomitant effect on infusion of foreign equity investment. Results of a logistic regression analysis suggest that the presence of audit committees does not significantly affect the likelihood of an increase in the banks’ American depository receipts.

Citation

Braiotta, L. (2003), "An exploratory study of adopting requirements for audit committees for non‐US commercial bank registrants: an empirical analysis of foreign equity investment", Managerial Auditing Journal, Vol. 18 No. 6/7, pp. 456-464. https://doi.org/10.1108/02686900310482605