Audit Committee and Information Transparency – Empirical Study on European Banking System

Author:Univ. Lecturer Cristina Alexandrina ŞTEFĂNESCU, Ph. D.

JEL:M10, G30

DOI:

Keywords:corporate governance, transparency, banking system, audit committee

Abstract:
Basing on the audit committee’s role in corporate governance mechanism – the one of a supervisor protecting all stakeholders’ interests, endowed with the power to give confidence in the information disclosed by an organization, by creating an devoid of any influence either “pro” or “contra” users’ interests, the following research question arose: “How does corporate governance, assessed through audit committee’s features, transparency in banking system?”\r\nThe results of empirical analysis performed for testing the hypotheses derived from the research question confirms the status of the audit committee who became a "tool" for effective monitoring able to control the so-called "agency problems" and improve transparency, thereby reducing asymmetric information, the independence of committee’s members, as well as their experience and education level proved to be an asset in this regard.\r\n

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