The impact of audit committee characteristics on firm performance: Evidence from Pakistan

Qaiser Rafique Yasser, Abdullah Al-Mamun

Research output: Contribution to journalArticle

Abstract

The importance of an audit committee is increasinglybeing acknowledged in the literature, yet very little work has beendone on board committees in emerging economies. We extend thework that has alluded to the importance of the characteristics ofdirectors (executive, non-executive and independent) with severalunexplored, yet crucial, attributes represented in audit committeesand additionally theorize and test how these audit committeecharacteristics play a role in an emerging economy context.Drawing attention on agency and stewardship theory, we testedour assertions with data on the population of firms on the KarachiStock Exchange in 2013. Our findings indicate that companies withmore than three audit committee members and non-executive auditcommittee chairman are associated with higher economic valueadded (EVA). Furthermore, we also document positive relationsbetween ex-chief participation in committee, audit committeechairman age, chairman qualification, and chairman’s financialexpertise on several other financial performance indicators.
Original languageEnglish
Pages (from-to)35-55
Number of pages21
JournalNew Zealand Journal of Applied Business Research
Volume13
Issue number1
Publication statusPublished - 2015

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Firm performance
Pakistan
Chairmen
Audit committee
Audit
Emerging economies
Qualification
Performance indicators
Financial performance
Participation
Board committees
Agency theory
Economics
Value added
Stewardship theory

Cite this

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The impact of audit committee characteristics on firm performance : Evidence from Pakistan. / Yasser, Qaiser Rafique; Al-Mamun, Abdullah.

In: New Zealand Journal of Applied Business Research, Vol. 13, No. 1, 2015, p. 35-55.

Research output: Contribution to journalArticle

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