The impact of audit committee characteristics on firm performance and earning quality

Abstract

The current study examines the effect of audit committee characteristics on both firm performance and earning quality. A sample of 25 companies listed in Egyptian stock exchange (EGX 30) in 2016 and 2017 are used. Firm’s financial statements and board of directors’ reports are used to collect data from measuring variables. The descriptive analysis, Pearson correlation and regression analysis are used to test the research hypothesis. The study found that the size of audit committee has a significant negative impact on firm performance measured by ROA. However, it failed to find a significant effect for the other audit committee characteristics on firm performance & earnings quality.