Article Abstract: We develop a classification to score the potential of corporate audit committees to he financially literate, as defined in this paper, based on listing requirements of the New York Stock Exchange (NYSE), as promulgated late in 1999. We score audit committees of approximately 300large companies in 2000 and 2004, and of a subsample in 1996 as well.
This article in the CPA Journal (see link below) covers a very worthy topic: how much financial literacy should audit committee members have, and how should you measure it. Can you answer all these questions correctly?
Adam Smith’s Legacy for Ethics and Economics
Abstract: Do bankruptcy changes in the institutional environment affect the rate of founding by particular types of entrepreneurs and the performance of their ventures? We take advantage of a quasi-natural experiment in Japan where changes to bankruptcy laws reduced the consequences of closing a firm.