We begin our sample-selection process by identifying all board members
who serve on audit committees as reported in the 2002–2003 Corporate
Library database.
The Corporate Library is an independent investment research
firm specializing in corporate governance and board effectiveness,
and their 2002–2003 database includes coverage of more than 1,700 U.S.
corporations and more than 21,000 individual directorships for the 2002–
2003 proxy reporting year.
The database contains data collected from proxy
statement filings, including information on each director’s work experience,
director independence, committee assignments, and the year the director
was first appointed to the board.