Audit Committee Characteristics and Executive Committee Characteristics and Firm Performance in Oman: Empirical Study

Matari, Ebrahim Mohammed Al; Al‐Swidi, Abdullah Kaid; Fadzil, Faudziah Hanim

doi:10.5539/ass.v10n12p98

Cited by 36 publications

(8 citation statements)

References 43 publications

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“…The larger audit committee will increase the number of meetings and result in more effective oversight (Raghunandan et al, 2001). Although Wei (2007), Al Matari et al (2014), andOradi et al (2017) did not find any evidence of a significant association between the audit committee size and the company performance; the outcomes of Al-Mamun et al (2014) and Reddy et al (2010) witnessed that the audit committee size positively affects the firm performance. Furthermore, Rezaei and Abbasi (2015) showed that the audit committee size of Iranian firms affects corporate performance.…”

Section: The Theoretical Issues Hypothesis Development and Literaturementioning

confidence: 98%

The effect of characteristics of audit committee and board on corporate profitability in Iran

Salehi

Tahervafaei

Tarighi

2018

JEAS

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Purpose The purpose of this paper is to evaluate the relationship between the characteristics of the audit committee and the board and profitability among the companies listed on the Tehran Stock Exchange (TSE) in Iran. Design/methodology/approach In this study, the companies listed on the TSE during the period from 2010 to 2015 are investigated. The Linear panel regression method is employed for this purpose. The independent variables of the study are composed of some corporate governance mechanisms including audit committee size, audit committee expertise, board size, board independence, chief executive officer (CEO) duality, and institutional ownership. Findings In spite of the fact that there does not exist any significant association between audit committee size and corporate financial performance, the results indicate that there is a positive and significant relationship between audit committee financial expertise and profitability. The authors found that the number of board members cannot affect corporate performance; moreover, duality of CEO role in Iranian companies does not affect company performance. However, the outcomes showed a positive and significant association between the proportion of outside directors on the board (board independence) and profitability at 99 percent confidence level. This implies that the role of non-executive directors in Iran is inconsistent with the stewardship theory. This is due to the fact that independent directors understand the status of business and market better than the board’s executive members. Finally, the results indicated that there is no significant association between institutional owners and Iranian companies’ performance. Practical implications The findings of this study will reveal more than ever the role of corporate governance mechanisms for society and users of financial statements because as tools on the CEO actions, they always have to pay attention to the implementation of corporate principles in the economic entity’ operation. Originality/value This is one of the most important studies that simultaneously examine the impacts of characteristics of the audit committee and the board on profitability in an emerging market, and the results of the study may give strength to Iranian as well other developing countries.

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Section: The Theoretical Issues Hypothesis Development and Literaturementioning

confidence: 98%

The effect of characteristics of audit committee and board on corporate profitability in Iran

Salehi

Tahervafaei

Tarighi

2018

JEAS

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“…There are a variety of reliable standards and criteria that can be used to measure corporate value, the first group is accounting standards which depend on the accounting and financial information derived from the corporate financial statements, and include ROA, EPS, and interest coverage ratio, while the second group is economic measures, such as added value measurements, and the third group deals with the market standards and includes measurements like Tobin Q ratio, and the ratio of market value to book value. Accounting standards represented in ROA method consider one of the most used criteria to measure the corporate value in accounting (Al-Matari, et al, 2014;Afza & Nazir, 2014;Al-Karasneh & Bataineh, 2018).…”

Section: Corporate Valuementioning

confidence: 99%

Does Auditing Committee Characteristics Enhance Corporate Value? Evidence From Jordan

Bataineh

Soumadi²

2020

IJFR

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The study aims to investigate the effect of auditing committee characteristics, represented in the auditing committee characteristics (size, independence, activity, financial expertise) on the enhancement of corporate value, for a sample of 47 Jordanian industrial companies listed at Amman Stock Exchange (ASE) during the period of (2014-2018). To achieve this goal, corporate value was measured using the return on assets (ROA) in addition to using the Pooled Data Regression. Study found a positive relationship between the auditing committee characteristics (size, activities, independence) and corporate value in the Jordanian industrial Companies, but didn't find a positive relationship between the financial expertise variable of auditing committee and the corporate value. Based on the study results, researchers made a number of recommendations that include: researchers and academic staffs must study in the future researches some of the other variables, such as the diversity of management committee, disclosure, transparency, and auditing fees in order to enhance corporate value.

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“…In many instances, earnings quality misinform users of financial statements through provision of incorrect information on company's financial performance or state (Iturriaga & Hoffmann, 2005). Therefore, a larger audit committee may be key to constraining the occurrence of earnings management (Al Matari et al, 2014;Rezaei & Abbasi 2015;Abdul Rahman & Heneem, 2006;Oradi et al, 2017). Contrarily, studies of Yang and Krishnan (2005); Hillman and Dalziel (2003) indicate existence of a negative and significant relationship between audit committee size with earnings quality.…”

Section: Audit Committee and Earnings Qualitymentioning

confidence: 99%

Emerging policies and the effectiveness of corporate governance mechanisms on earning quality

Obaid¹,

Amrah²

2020

IJRBS

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Current study review extant empirical researches on the relationship between CG and EQ. However, the scope of the reviewed studies was shown to vary, most studies on CG and EQ are specific in focus, with different studies focusing on specific aspects or measures of CG. This study evaluates the role of emerging policies and the effectiveness of corporate governance mechanisms on earning quality within a conceptual framework for the Gulf cooperation council. This study concludes that the majority of companies with big board size, higher board independence, and more frequent meetings have improved EQ. Also, the result indicates companies with big audit committee size, a larger number of independent directors, more audit committee meetings and more experts tend to have an increase in EQ. Finally, this review emerged as a framework suitable for assessing the level of EQ disclosed and the relationship between CG and EQ base on GCC policies.

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Audit Committee Characteristics and Executive Committee Characteristics and Firm Performance in Oman: Empirical Study

Cited by 36 publications

References 43 publications

The effect of characteristics of audit committee and board on corporate profitability in Iran

The effect of characteristics of audit committee and board on corporate profitability in Iran

Does Auditing Committee Characteristics Enhance Corporate Value? Evidence From Jordan

Emerging policies and the effectiveness of corporate governance mechanisms on earning quality

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