Further evidence on the link between firm's control mechanisms and firm financial performance: Sultanate of Oman
Based on the agency theory perspective and its corporate governance problem, the current study investigated how control mechanisms affect firm financial performance with a special concentrate on the role of the audit committee on the enhancement of firm financial performance. The empirical findings...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Malaysia Pahang
2020
|
| Subjects: | |
| Online Access: | http://umpir.ump.edu.my/id/eprint/30237/1/Further%20evidence%20on%20the%20link%20between%20firm%27s%20control.pdf |
| _version_ | 1825813648429285376 |
|---|---|
| author | Ahmed, Essia Ries Alabdullah, Tariq Tawfeeq Yousif Muhammad Shabir, Shaharudin Putri, Eskasari |
| author_facet | Ahmed, Essia Ries Alabdullah, Tariq Tawfeeq Yousif Muhammad Shabir, Shaharudin Putri, Eskasari |
| author_sort | Ahmed, Essia Ries |
| collection | UMP |
| description | Based on the agency theory perspective and its corporate governance problem, the current study investigated how control mechanisms affect firm financial performance with a special concentrate on the role of the audit committee on the enhancement of firm financial performance. The empirical findings of this study based on the listed firms in the Sultanate of Oman revealed that the control mechanisms, including committee size and board independence, positively enhance financial performance represented by ROEand therefore this leads to encouraging firms to focus on such mechanisms. By contrast, audit size, board size and board independence are totally not motivated to engage with financial performance due to the insignificant link with ROA. On the other hand,a negative correlation has been found between a board meeting and financial performance represented by ROE. The practical evidence of the implicationsby the current study found that for improvement of firm financial performance; that even though if mostof the GCC governments recently have focused on corporate social responsibility because largely voluntary nature of corporate social responsibility, they should focus of the control mechanisms that suggested by the current study to play a significant rolefor enhancing firm financial performance. |
| first_indexed | 2024-03-06T12:47:08Z |
| format | Article |
| id | UMPir30237 |
| institution | Universiti Malaysia Pahang |
| language | English |
| last_indexed | 2024-03-06T12:47:08Z |
| publishDate | 2020 |
| publisher | Penerbit Universiti Malaysia Pahang |
| record_format | dspace |
| spelling | UMPir302372020-12-18T08:46:06Z http://umpir.ump.edu.my/id/eprint/30237/ Further evidence on the link between firm's control mechanisms and firm financial performance: Sultanate of Oman Ahmed, Essia Ries Alabdullah, Tariq Tawfeeq Yousif Muhammad Shabir, Shaharudin Putri, Eskasari HF Commerce Based on the agency theory perspective and its corporate governance problem, the current study investigated how control mechanisms affect firm financial performance with a special concentrate on the role of the audit committee on the enhancement of firm financial performance. The empirical findings of this study based on the listed firms in the Sultanate of Oman revealed that the control mechanisms, including committee size and board independence, positively enhance financial performance represented by ROEand therefore this leads to encouraging firms to focus on such mechanisms. By contrast, audit size, board size and board independence are totally not motivated to engage with financial performance due to the insignificant link with ROA. On the other hand,a negative correlation has been found between a board meeting and financial performance represented by ROE. The practical evidence of the implicationsby the current study found that for improvement of firm financial performance; that even though if mostof the GCC governments recently have focused on corporate social responsibility because largely voluntary nature of corporate social responsibility, they should focus of the control mechanisms that suggested by the current study to play a significant rolefor enhancing firm financial performance. Penerbit Universiti Malaysia Pahang 2020 Article PeerReviewed pdf en http://umpir.ump.edu.my/id/eprint/30237/1/Further%20evidence%20on%20the%20link%20between%20firm%27s%20control.pdf Ahmed, Essia Ries and Alabdullah, Tariq Tawfeeq Yousif and Muhammad Shabir, Shaharudin and Putri, Eskasari (2020) Further evidence on the link between firm's control mechanisms and firm financial performance: Sultanate of Oman. Journal of Governance & Integrity, 4 (1). pp. 6-11. ISSN 2600-7479. (Published) https://jgi.ump.edu.my/index.php/en/current-issue/287-vol-4-issue-1-pp-6-11-pdf/file |
| spellingShingle | HF Commerce Ahmed, Essia Ries Alabdullah, Tariq Tawfeeq Yousif Muhammad Shabir, Shaharudin Putri, Eskasari Further evidence on the link between firm's control mechanisms and firm financial performance: Sultanate of Oman |
| title | Further evidence on the link between firm's control mechanisms and firm financial performance: Sultanate of Oman |
| title_full | Further evidence on the link between firm's control mechanisms and firm financial performance: Sultanate of Oman |
| title_fullStr | Further evidence on the link between firm's control mechanisms and firm financial performance: Sultanate of Oman |
| title_full_unstemmed | Further evidence on the link between firm's control mechanisms and firm financial performance: Sultanate of Oman |
| title_short | Further evidence on the link between firm's control mechanisms and firm financial performance: Sultanate of Oman |
| title_sort | further evidence on the link between firm s control mechanisms and firm financial performance sultanate of oman |
| topic | HF Commerce |
| url | http://umpir.ump.edu.my/id/eprint/30237/1/Further%20evidence%20on%20the%20link%20between%20firm%27s%20control.pdf |
| work_keys_str_mv | AT ahmedessiaries furtherevidenceonthelinkbetweenfirmscontrolmechanismsandfirmfinancialperformancesultanateofoman AT alabdullahtariqtawfeeqyousif furtherevidenceonthelinkbetweenfirmscontrolmechanismsandfirmfinancialperformancesultanateofoman AT muhammadshabirshaharudin furtherevidenceonthelinkbetweenfirmscontrolmechanismsandfirmfinancialperformancesultanateofoman AT putrieskasari furtherevidenceonthelinkbetweenfirmscontrolmechanismsandfirmfinancialperformancesultanateofoman |