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Does Auditing Committee Characteristics Enhance Corporate Value? Evidence From Jordan

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  • Ashraf Bataineh
  • Mustafa M Soumadi

Abstract

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.

Suggested Citation

  • Ashraf Bataineh & Mustafa M Soumadi, 2020. "Does Auditing Committee Characteristics Enhance Corporate Value? Evidence From Jordan," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(2), pages 348-357, April.
    • Handle: RePEc:jfr:ijfr11:v:11:y:2020:i:2:p:348-357
    DOI: 10.5430/ijfr.v11n2p348
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    References listed on IDEAS

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    1. Mark S. Beasley & Steven E. Salterio, 2001. "The Relationship between Board Characteristics and Voluntary Improvements in Audit Committee Composition and Experience," Contemporary Accounting Research, John Wiley & Sons, vol. 18(4), pages 539-570, December.
    2. Husam Aldamen & Keith Duncan & Simone Kelly & Ray McNamara & Stephan Nagel, 2012. "Audit committee characteristics and firm performance during the global financial crisis," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 52(4), pages 971-1000, December.
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