The role of audit committee on performance of listed companies in Pakistan; an empirical evidence
Nowadays the most important role of audit committee is protection the interest of shareholder. This research indicates the effectiveness of audit committee on the performance of firms by using three different characteristics which are size, meeting and independence. The performance of firms measured by ROA. Thirty (30) listed companies taken and collected data from 2012 to 2015, for data analysis used correlation and multiple regression. The results showed positive significance relationship with independence and meeting of audit committee on performance. Although, the result of audit committee size shows insignificance relationship with firmâ€™s performance. Therefore, study recommended by audit meeting and the independence of audit committee and reduce the size of audit committee.
Abdul Rahman, R., & Haneem Mohamed Ali, F. (2006). Board, audit committee, culture and earnings management: Malaysian evidence. Managerial Auditing Journal, 21(7), 783-804.
Al-Matari, Y. A., Al-Swidi, A. K., Fadzil, F. H. B., Fadzil, H., & Al-Matari, E. M. (2012). Board of directors, audit committee characteristics and the performance of Saudi Arabia listed companies. International Review of Management and Marketing, 2(4), 241.
Braiotta Jr, L. (2000). Advice on Audit Committees. Internal Auditor, 57(1), 19-19.
Cadbury, A. (1992). Report of the committee on the financial aspects of corporate governance (Vol. 1). Gee
Dalton, D. R., Daily, C. M., Johnson, J. L., & Ellstrand, A. E. (1999). Number of directors and financial performance: A meta-analysis. Academy of Management journal, 42(6), 674-686.
Erickson, J., Park, Y. W., Reising, J., & Shin, H. H. (2005). Board composition and firm value under concentrated ownership: the Canadian evidence. Pacific-Basin Finance Journal, 13(4), 387-410.
Gujarati, D. N., & Porter, D. (2009). Basic Econometrics Mc Graw-Hill International Edition.
Higgs, D. (2003). Review of the role and effectiveness of non-executive directors (pp. 1-120).
Ilona, D. (2008). Board Quality and Firm Performance: The Case of Indonesia's Listed Companies (Doctoral dissertation, Universiti Utara Malaysia).
Kalbers, L. P., & Fogarty, T. J. (1993). Audit committee effectiveness: An empirical investigation of the contribution of power. Auditing, 12(1), 24.
Karamanou, I., & Vafeas, N. (2005). The association between corporate boards, audit committees, and management earnings forecasts: An empirical analysis. Journal of Accounting research, 43(3), 453-486
Kesner, I. F. (1988). Directors' characteristics and committee membership: An investigation of type, occupation, tenure, and gender. Academy of Management journal, 31(1), 66-84.
Khatab, H., Masood, M., Zaman, K., Saleem, S., & Saeed, B. (2011). Corporate governance and firm performance: A case study of Karachi stock market. International Journal of Trade, Economics and Finance, 2(1), 39.
Kyereboah-Coleman, A. (2008). Corporate governance and firm performance in Africa: A dynamic panel data analysis. Studies in Economics and Econometrics, 32(2), 1-24.
Liebling, A., Arnold, H., & Straub, C. (2011). An exploration of staffâ€“prisoner relationships at HMP Whitemoor: 12 years on. Revised Final Report, Ministry of Justice, National Offender Management Service. Cambridge Institute of Criminology Prisons Research Centre.
Mohd Saleh, N., Mohd Iskandar, T., & Mohid Rahmat, M. (2007). Audit committee characteristics and earnings management: Evidence from Malaysia. Asian Review of Accounting, 15(2), 147-163.
Rebeiz, K. S., & Salameh, Z. (2006). Relationship between governance structure and financial performance in construction. Journal of Management in Engineering, 22(1), 20-26.
Sanda, A., Garba, T., & Mikailu, A. S. (2011). Board independence and firm financial performance: Evidence from Nigeria (No. RP_213). Nairobi: African Economic Research Consortium.
Thoopsamut, W., & Jaikengkit, A. O. (2009). The relationship between Audit committee characteristics, Audit firm size and Earnings management in quarterly financial reports of companies listed in the Stock Exchange of Thailand. In Selected Contributions from the 8th Global Conference/Firenze University Press.
Vance, S. C. (1983). Corporate leadership: Boards, directors, and strategy. McGraw-Hill Companies
Vicknair, D., Hickman, K., & Carnes, K. C. (1993). A note on audit committee independence: Evidence from the NYSE on" grey" area directors. Accounting Horizons, 7(1), 53.
Xie, B., Davidson, W. N., & DaDalt, P. J. (2003). Earnings management and corporate governance: the role of the board and the audit committee. Journal of corporate finance, 9(3), 295-316
Submission of an article implies that the work described has not been published previously (except in the form of an abstract or as part of a published lecture or academic thesis), that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, in English or in any other language, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.
Copyrights for articles published in International Journal of Innovative Knowledge Concepts are retained by the authors, with first publication rights granted to the journal. The journal/publisher is not responsible for subsequent uses of the work. It is the author's responsibility to bring an infringement action if so desired by the author.