From this initial
list of 3497 audit committee director appointments, we delete observations for the following reasons: (a)
duplicate (n = 13); (b) foreign firms (n = 196);7 (d) multiple directors appointed at the same time or
simultaneous director departures (n = 1011);8 (e) missing stock price data in CRSP (n = 1042), and (f)
other contemporaneous news announcements (n = 783).9 This yields a final sample of 452 audit committee
appointments.