Audit committee effectiveness and company performance: Evidence from Egypt

Journal of Governance and Regulation

article

Engy ElHawary¹ 

[1] Faculty of Business Administration, Economics, and Political Science, The British University in Egypt

关键词: Corporate Governance;    Audit Committee;    Auditor Independence;    Experience;    Firm Performance;    Egyptian Stock Exchange;   

DOI  :  10.22495/jgrv10i2art12

学科分类：社会科学、人文和艺术（综合）

来源: Virtus Interpress

【 摘 要 】

The purpose of this paper is to investigate the impact of audit committee characteristics (size, independence, experience, gender diversity, and frequency of meetings) on the company’s financial performance (ROA and ROE) in Egypt. In 2016, the Egyptian Stock Exchange announced a new listing requirement for the audit committee members’ characteristics to enhance its effectiveness. Data are gathered from the board of directors (BOD) and annual reports of the EGX 30 index non-financial listed companies in Egypt for the period of 2016–2018. Data is analyzed by using panel data cross-section data analysis and correlation analysis. The findings reveal that the audit committee size has a significant relationship with ROA only and committee members’ experience is significantly related with ROE only. The other characteristics (independence, meetings, and gender diversity) have no impact on ROA and ROE. Such findings contribute to the literature by providing new understandings regarding the audit committee as a key component of corporate governance and its impact on financial performance. It could also guide and improve the boards’ selection of the audit committee members and gives Egyptian regulators a better understanding of the impact of their latest listing requirements on protecting the shareholders’ interests and increasing their confidence through having transparent financial statements.

【 授权许可】

CC BY-NC