The Impact of Audit Committee Effectiveness on Corporate Performance – Evidence from Saudi Arabia
The Impact of Audit Committee Effectiveness on Corporate Performance – Evidence from Saudi Arabia

Author(s): Sultan Altass
Subject(s): Business Economy / Management, Socio-Economic Research
Published by: Scientia Moralitas Research Institute
Keywords: Corporate governance; Audit committee; Firm performance; Return on Equity; Earnings per share
Summary/Abstract: The main aim of this study is to investigate the relationship between the effectiveness of audit committee (AC) of transportation firms listed on TASI and firm performance (FP) for the period 2010-2019. Employing Pooled OLS multiple regression analysis, the results indicate that the AC independence is negatively associated with FP. Therefore, the results contradict previous research which found that such relationship is significantly positive. Moreover, the results of two Pooled OLS regression analysis models reveal that frequent annual AC meetings do not have statistical association with FP. The findings of this study are relevant to investors and policy makers in Saudi Arabia regarding the reliability of AC in today’s competitive markets.

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