Exploring the dynamics of audit committee membership: a survival analysis approach

Purpose This study aims to investigate the drivers of audit committee (AC) member change, focusing on directors’ individual characteristics, AC composition and firm-specific factors. Design/methodology/approach Using data from 1,678 French AC members over the period 2007–2018, the authors conduct a time-discrete survival analysis. Findings The authors find that personal characteristics, such as gender, independence and accounting expertise, significantly affect the probability of exit, suggesting that firms prioritize retaining these profiles to enhance AC effectiveness and ensure regulatory compliance. In contrast, busyness and experience in finance, audit or law appear to be less influential. The results also indicate that AC composition and firm characteristics, including financial distress, play a role in turnover. Originality/value This study extends the literature on AC tenure and turnover by analyzing individual characteristics that affect AC dynamics over time, highlighting the need to study AC members at the individual level rather than relying on aggregate measures. The authors also provide insights into the impact of gender diversity regulations, showing that while firms seek to retain women on ACs, they face challenges in doing so over the long term, as women are in higher demand in the director market.