IDEAS home Printed from https://ideas.repec.org/a/bjf/journl/v5y2020i8p01-10.html
   My bibliography  Save this article

The Moderating Effect of the Audit Committee on the Relationship between Corporate Governance and Financial Performance: A Conceptual Review

Author

Listed:
  • Ali Alhaji Goni Mustapha

    (Department of Business Administration and Entrepreneurship, Bayero University, Kano PMB 3011, Kano, Nigeria)

  • Aminu M. Bello

    (Department of Business Administration and Entrepreneurship, Bayero University, Kano PMB 3011, Kano, Nigeria)

  • Ali M. Garba

    (Department of Business Administration and Entrepreneurship, Bayero University, Kano PMB 3011, Kano, Nigeria)

  • Musa Ibrahim Gobe

    (Department of Business Administration and Entrepreneurship, Bayero University, Kano PMB 3011, Kano, Nigeria)

Abstract

The effect of corporate governance on the organization’s financial performance has been a crucial issue since the last global financial distress. Many accounting scandals and numerous cases of corporate governance malpractice brought about more attention to corporate governance. The issue is a serious factor in economic growth and financial market steadiness, also enormous body of literature has developed concerning the link between corporate governance and financial performance, but the study finding produced inconsistent results. Therefore, the main purpose of this study is to investigate the moderating effect of the audit committee on the relationship between corporate governance and financial performance.

Suggested Citation

  • Ali Alhaji Goni Mustapha & Aminu M. Bello & Ali M. Garba & Musa Ibrahim Gobe, 2020. "The Moderating Effect of the Audit Committee on the Relationship between Corporate Governance and Financial Performance: A Conceptual Review," International Journal of Research and Innovation in Applied Science, International Journal of Research and Innovation in Applied Science (IJRIAS), vol. 5(8), pages 01-10, August.
    • Handle: RePEc:bjf:journl:v:5:y:2020:i:8:p:01-10
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijrias/DigitalLibrary/Vol.5&Issue8/01-10.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/journals/ijrias/digital-library/Vol.V-Issue-VIII.php
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rohail Hassan & Maran Marimuthu, 2016. "Corporate Governance, Board Diversity, and Firm Value: Examining Large Companies Using Panel Data Approach," Economics Bulletin, AccessEcon, vol. 36(3), pages 1737-1750.
    2. Enny Nurdin Sutan Maruhun & Wan Razazila Wan Abdullah & Ruhaya Atan & Sharifah Norzehan Syed Yusuf, 2018. "The Effects of Corporate Governance on Enterprise Risk Management: Evidence from Malaysian Shariah-Compliant Firms," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(1), pages 865-877, January.
    3. Nikos Vafeas, 1999. "The Nature of Board Nominating Committees and Their Role in Corporate Governance," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 26(1‐2), pages 199-225, January.
    4. Nikos Vafeas, 1999. "The Nature of Board Nominating Committees and Their Role in Corporate Governance," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 26(1-2), pages 199-225.
    5. Karl V. Lins & Henri Servaes & Ane Tamayo, 2017. "Social Capital, Trust, and Firm Performance: The Value of Corporate Social Responsibility during the Financial Crisis," Journal of Finance, American Finance Association, vol. 72(4), pages 1785-1824, August.
    6. Wei Shi & Brian L. Connelly & Robert E. Hoskisson, 2017. "External corporate governance and financial fraud: cognitive evaluation theory insights on agency theory prescriptions," Strategic Management Journal, Wiley Blackwell, vol. 38(6), pages 1268-1286, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vidhi Chhaochharia & Yaniv Grinstein, 2007. "The Changing Structure of US Corporate Boards: 1997–2003," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(6), pages 1215-1223, November.
    2. Salim, Ruhul & Arjomandi, Amir & Seufert, Juergen Heinz, 2016. "Does corporate governance affect Australian banks' performance?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 43(C), pages 113-125.
    3. Amel Ben Rhouma & Walid Ben Amar & Eustache Ebondo Wa Mandzila, 2014. "Quel Impact Des Mécanismes De Gouvernance Sur La Divulgation Des Risques Liés Au Changement Climatique ? Le Cas Des Entreprises Françaises Cotées," Post-Print hal-01899578, HAL.
    4. Surroca Aguilar, Jorge & Tribo Gine, José Antonio, 2009. "Is managerial entrenchment always bad? : a CSR approach," IC3JM - Estudios = Working Papers id-09-01, Instituto Mixto Carlos III - Juan March de Ciencias Sociales (IC3JM).
    5. Baldacchino, Peter J. & Gatt, Jessica & Tabone, Norbert & Bezzina, Frank, 2018. "The Nomination Committee in Maltese Listed Companies," 6th International OFEL Conference on Governance, Management and Entrepreneurship. New Business Models and Institutional Entrepreneurs: Leading Disruptive Change (Dubrovnik, 2018), in: 6th International OFEL Conference on Governance, Management and Entrepreneurship. New Business Models and Institutional Entrepreneurs: Leading Disrupt, pages 125-139, Governance Research and Development Centre (CIRU), Zagreb.
    6. Isabel Gutierrez & Jordi Surroca, 2014. "Revisiting corporate governance through the lens of the Spanish evidence," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 18(4), pages 989-1017, November.
    7. Zhilan Feng & Chinmoy Ghosh & C. Sirmans, 2007. "CEO Involvement in Director Selection: Implications for REIT Dividend Policy," The Journal of Real Estate Finance and Economics, Springer, vol. 35(4), pages 385-410, November.
    8. Ameur Boujenoui & Richard Bozec & Daniel Zeghal, 2004. "Analyse de l’évolution des mécanismes de gouvernance d’entreprise dans les sociétés d’État au Canada," Revue Finance Contrôle Stratégie, revues.org, vol. 7(2), pages 95-122, June.
    9. Chris GROSE & Dimitrios KOUFOPOULOS & Ioannis GKLIATIS & Konstantinos ATHANASIADIS & Michail FYGKIORIS, 2022. "Board characteristics and board committees in the Greek corporate governance framework," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 13(4), pages 400-417, January.
    10. Walther, Axel & Morner, Michèle & Calabrò, Andrea, 2017. "The role of behaviorally integrated nominating committees in non-executive director selection processes," European Management Journal, Elsevier, vol. 35(3), pages 351-361.
    11. Charles Piot, 2005. "Les Comités De Rémunération Et De Sélection Sont-Ils Perçus Comme Des Mécanismes De Contrôle En France ?," Post-Print halshs-00581273, HAL.
    12. Akshita Arora & Shernaz Bodhanwala, 2018. "Relationship between Corporate Governance Index and Firm Performance: Indian Evidence," Global Business Review, International Management Institute, vol. 19(3), pages 675-689, June.
    13. repec:cte:idrepe:id-09-01 is not listed on IDEAS
    14. Winfried Ruigrok & Simon Peck & Sabina Tacheva & Peder Greve & Yan Hu, 2006. "The Determinants and Effects of Board Nomination Committees," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 10(2), pages 119-148, May.
    15. Polovina, Nereida & Peasnell, Ken, 2020. "Do minority acquisitions transfer better corporate governance practices? An analysis of UK's cross-border minority investments," The British Accounting Review, Elsevier, vol. 52(3).
    16. Sumaira Ashraf & Elisabete G. S. Félix & Zélia Serrasqueiro, 2022. "Does board committee independence affect financial distress likelihood? A comparison of China with the UK," Asia Pacific Journal of Management, Springer, vol. 39(2), pages 723-761, June.
    17. Anwer, Zaheer & Azmi, Wajahat & Mohamad, Shamsher, 2023. "Shariah screening and corporate governance: The case of constituent stocks of Dow Jones US Indices," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 976-1002.
    18. Badar Alshabibi, 2021. "The Role of Institutional Investors in Improving Board of Director Attributes around the World," JRFM, MDPI, vol. 14(4), pages 1-33, April.
    19. Jordi Surroca & Josep A. Tribó, 2008. "Managerial Entrenchment and Corporate Social Performance," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 35(5‐6), pages 748-789, June.
    20. Francesca Bertoncelli & Paola Fandella & Emiliano Sironi, 2021. "The Relationship between Governance Quality and the Cost of Equity Capital in Italian Listed Firms: An Update," JRFM, MDPI, vol. 14(3), pages 1-16, March.
    21. Qaiser Rafique Yasser & Abdullah Al Mamun, 2017. "The Impact of Ownership Concentration on Firm Performance: Evidence from an Emerging Market," Emerging Economy Studies, International Management Institute, vol. 3(1), pages 34-53, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bjf:journl:v:5:y:2020:i:8:p:01-10. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Renu Malsaria (email available below). General contact details of provider: https://rsisinternational.org/journals/ijrias/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.