Open AccessThe Impact of Board and Audit Characteristics on the Financial Performance of UAE Listed Firms
Author(s) -
Abdulfattah Mohamed G Khalifa H,
Riccardo Natoli,
Segu Zuhair
Publication year - 2020
Publication title -
international journal of accounting and financial reporting
Language(s) - English
Resource type - Journals
ISSN - 2162-3082
DOI - 10.5296/ijafr.v10i2.16481
Subject(s) - audit committee , accounting , hausman test , audit , business , originality , test (biology) , panel data , chief audit executive , foundation (evidence) , joint audit , fixed effects model , finance , internal audit , economics , econometrics , psychology , political science , social psychology , paleontology , creativity , law , biology
Purpose – The purpose of this paper is to provide empirical insights on the impact of board and audit committee characteristics on the financial performance of United Arab Emirates (UAE) listed firms.Design/methodology/approach – A multiple regression panel model was employed for the period 2006 to 2015. The analysis incorporates Anderson Lagrange Multiplier test and Hausman test to determine if a fixed effects or random effects model should be employed.Findings – Our results demonstrated that board size and board meetings had a significant positive relationship with financial performance while there were also significant positive relationships between both audit committee composition and audit committee members’ education and firm financial performance.Research limitations/implications – The findings inform UAE firms about the benefits of employing directors with a more diverse skill set to enhance board effectiveness as well as having audit committee members hold a recognised qualification in finance or accounting to improve firm financial performance.Originality/value – Our study contributes to the CG literature by adding to the limited studies on CG in the UAE which help reduce the significant gap between foundation theories and practical applicability.