Audit committee attributes and financial performance of Saudi non-financial listed firms
This article investigates the impact of the audit committee attributes in determining the financial performance of Saudi non-financial firms. The research sampled the data of 100 companies spanning from 2010 to 2019 obtained from the firms’ financial statements. The data generated were analysed usin...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2022-12-01
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| Series: | Cogent Economics & Finance |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2022.2127238 |
| _version_ | 1818032978700271616 |
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| author | Ayman Hassan Bazhair |
| author_facet | Ayman Hassan Bazhair |
| author_sort | Ayman Hassan Bazhair |
| collection | DOAJ |
| description | This article investigates the impact of the audit committee attributes in determining the financial performance of Saudi non-financial firms. The research sampled the data of 100 companies spanning from 2010 to 2019 obtained from the firms’ financial statements. The data generated were analysed using different panel data techniques (pooled OLS, fixed and random effects). This study emphasises that audit committee size and meetings negatively influence firms’ performance. However, audit committee independence and financial expertise indicate a strong and positive relationship with financial performance. Therefore, this study provides valuable insights into how audit committee attributes affect profitability. Furthermore, this research may guide companies’ top management on restructuring the audit committee to improve corporate governance practices. Also, the results suggest that Saudi regulatory agencies should ensure that listed firms set up audit committees with more independent directors and financial experts. This requirement may help the firms mitigate information disparity between management and shareholders, thus, reducing agency conflicts and boosting firm performance. Consequently, this paper sheds light on the Saudi corporate environment, so investors may find this research helpful in making their investment decisions. |
| first_indexed | 2024-12-10T06:15:58Z |
| format | Article |
| id | doaj.art-697895eacc68491faacf267c0b0bb5ee |
| institution | Directory Open Access Journal |
| issn | 2332-2039 |
| language | English |
| last_indexed | 2024-12-10T06:15:58Z |
| publishDate | 2022-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj.art-697895eacc68491faacf267c0b0bb5ee2022-12-22T01:59:26ZengTaylor & Francis GroupCogent Economics & Finance2332-20392022-12-0110110.1080/23322039.2022.2127238Audit committee attributes and financial performance of Saudi non-financial listed firmsAyman Hassan Bazhair0Faculty of Business Administration, Department of Economics and Finance, Taif University (TU), Altaif, Saudi ArabiaThis article investigates the impact of the audit committee attributes in determining the financial performance of Saudi non-financial firms. The research sampled the data of 100 companies spanning from 2010 to 2019 obtained from the firms’ financial statements. The data generated were analysed using different panel data techniques (pooled OLS, fixed and random effects). This study emphasises that audit committee size and meetings negatively influence firms’ performance. However, audit committee independence and financial expertise indicate a strong and positive relationship with financial performance. Therefore, this study provides valuable insights into how audit committee attributes affect profitability. Furthermore, this research may guide companies’ top management on restructuring the audit committee to improve corporate governance practices. Also, the results suggest that Saudi regulatory agencies should ensure that listed firms set up audit committees with more independent directors and financial experts. This requirement may help the firms mitigate information disparity between management and shareholders, thus, reducing agency conflicts and boosting firm performance. Consequently, this paper sheds light on the Saudi corporate environment, so investors may find this research helpful in making their investment decisions.https://www.tandfonline.com/doi/10.1080/23322039.2022.2127238Audit committee attributesFinancial performanceSaudi non-financial listed firmsDeterminants of firm performanceBoard of directors |
| spellingShingle | Ayman Hassan Bazhair Audit committee attributes and financial performance of Saudi non-financial listed firms Cogent Economics & Finance Audit committee attributes Financial performance Saudi non-financial listed firms Determinants of firm performance Board of directors |
| title | Audit committee attributes and financial performance of Saudi non-financial listed firms |
| title_full | Audit committee attributes and financial performance of Saudi non-financial listed firms |
| title_fullStr | Audit committee attributes and financial performance of Saudi non-financial listed firms |
| title_full_unstemmed | Audit committee attributes and financial performance of Saudi non-financial listed firms |
| title_short | Audit committee attributes and financial performance of Saudi non-financial listed firms |
| title_sort | audit committee attributes and financial performance of saudi non financial listed firms |
| topic | Audit committee attributes Financial performance Saudi non-financial listed firms Determinants of firm performance Board of directors |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2022.2127238 |
| work_keys_str_mv | AT aymanhassanbazhair auditcommitteeattributesandfinancialperformanceofsaudinonfinanciallistedfirms |