In Table 2 we present the descriptive statistics partitioned on audit committee strength (Strong AC). We find that companies
with a strong audit committee, as defined by our index, are smaller (Size) than firms without a strong audit committee.
Thus, as larger companies purchase more audit services, we find a large difference in audit fees paid between the two groups.
We find that companies with a strong audit committee are more likely to have an overconfident manager as measured by
Holder67 and Over-Invest. In addition, we find that companies with a strong audit committee tend to have lower values of
Delta, Vega, MTB, and Leverage.