Science Journal of Business Management
March 2015, Volume 2015, ISSN:2276-6316
© Author(s) 2015. This work is distributed under the Creative Commons Attribution 3.0 License.
Audit Committee Characteristics and Firm Performance During the Global Financial Crisis
Ashraf Elazoume Abdulsalam M, Husam Aldamen, Keith Duncan, Simone Kelly, Ray McNamara, Stephan Nagelc
Accepted 31 January, 2015; Available Online 9 March, 2015
We address the question ‘do governance enhancing audit committee (AC) characteristics mitigate the firm performance impact of significant-adverse-economic events such as the Global Financial Crisis (GFC)?’ Our analysis reveals that smaller audit committees with more experience and financial expertise are more likely to be associated with positive firm performance in the market. We also find that longer serving chairs of audit committees negatively impacts accounting performance. However, accounting performance is positively impacted where ACs include block holder representation, the chair of the board, whose members have more external directorships and whose chair has more years of managerial experience. We contribute to the growing body of research on the impact of audit committee governance attributes on performance during times of financial distress.
Keyword:Corporate governance; Audit committee; Firm performance; Return on assets