A Theoretical Analysis of the Audit Committeeas Role in China

A Theoretical Analysis of the Audit Committeeas Role in China

Pao-Chen Lee

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Kainan University

A Theoretical Analysis of the Audit Committeeas Role in China

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Abstract

This paper aims to analyze the role of the Audit Committee (AC) in China by employing the following theoretical frameworks: managerial hegemony theory to examine whether ACs in China serve as a mere “rubber stamp”; the origin of agency theory to determine whether ACs are supported by the separation of ownership and control to act as overseers and supervisors; and to use resource dependence theory to assess whether ACs provide added value by acting as consultants and trainers in China. Telephone interviews surveying 330 listed companies in China yielded 61 interviews, and the research results reveal that the AC’s role supports both the resource dependency and agency theories but conflicts with managerial hegemony theory.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Pao-Chen Lee. 2015. \u201cA Theoretical Analysis of the Audit Committeeas Role in China\u201d. Global Journal of Management and Business Research - D: Accounting & Auditing GJMBR-D Volume 14 (GJMBR Volume 14 Issue D5): .

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GJMBR Volume 14 Issue D5
Pg. 1- 14

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

audit committee Corporate Governance Role supervisory board

Submission ReceivedDecember 10, 2013
Peer Review Double Blind
Handling Editor
Accepted January 4, 2014
Published January 15, 2014

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v1.2

Issue date

February 3, 2015

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Article Matrices

Total Score: 141

Country: Taiwan

Subject: Global Journal of Management and Business Research - D: Accounting & Auditing

Authors: Pao-Chen Lee (PhD/Dr. count: 0)

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Publish Date: 2015 02, Tue

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