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Audit Committee Effectiveness and Company Performance: Evidence from Jordan

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  • Rateb Mohammad Alqatamin

Abstract

This paper seeks to investigate the effect of audit committee characteristics on the company’s performance. The sample consists of 165 non-financial companies listed on the Amman Stock Exchange (ASE) over the period 2014-2016. The results of the study show that the audit committee size, independence and gender diversity have a significant positive relationship with firm’s performance, whereas experience and frequency of meetings has an insignificant association. The results of the study could be beneficial for managers and boards in making suitable choices about audit committee characteristics and corporate governance mechanisms to enhance the company’s performance. The study gives policy makers a better understanding of the different characteristics required of an audit committee, for incorporation in future policy preparation to protect the shareholders’ interests. The relationship between audit committee characteristics and company performance is still ambiguous. This study contributes to the literature by identifying the role of audit committee characteristics in company performance, providing evidence for the view that performance is driven by specific audit committee characteristics.Â

Suggested Citation

  • Rateb Mohammad Alqatamin, 2018. "Audit Committee Effectiveness and Company Performance: Evidence from Jordan," Accounting and Finance Research, Sciedu Press, vol. 7(2), pages 1-48, May.
    • Handle: RePEc:jfr:afr111:v:7:y:2018:i:2:p:48
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    References listed on IDEAS

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    Cited by:

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    2. Horsfall Ekenta Saturday & Professor Joshua Okpanachi & Samuel Gambo Joshua PhD, 2023. "Audit Committee and Financial Reporting Quality of Listed Consumer Goods Firms in Nigeria: Moderating Role of Managerial Shareholdings," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 10(9), pages 303-313, September.
    3. Mohammad Abdullah Fayad Altawalbeh, 2020. "Corporate Governance Mechanisms and Firm’s Performance: Evidence from Jordan," Accounting and Finance Research, Sciedu Press, vol. 9(2), pages 1-11, May.
    4. Ines Kateb & Ines Belgacem, 2024. "Navigating governance and accounting reforms in Saudi Arabia's emerging market: impact of audit quality, board characteristics, and IFRS adoption on financial performance," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 21(2), pages 290-312, June.
    5. Mustapha Jamiu & Norfadzilah Rashid & Ishaq Ahmed Mohammed, 2024. "Do Audit Committee Attributes Impact Firm Performance: Evidence from the Nigerian Stock Exchange," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 7, pages 105-118.

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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