Journal of Applied
Finance & Research

Abstract

We examine the determinants of audit committee effectiveness in a panel of 612 family controlled listed firms across Continental Europe over a ten year window. The study formally tests whether independence, financial expertise, and meeting cadence translate into measurable improvements in financial reporting quality once founding family influence is properly controlled. Our results indicate that committee composition matters substantially, but only when paired with governance arrangements that limit the dominance of controlling shareholders over the appointment process.