The Moderating Effect of Board Diversity on the Relationship Between Audit Committee Characteristics and Firm Performance in Oman: Empirical Study

Al-Matari, Ebrahim Mohammed; Bt Fadzil, Faudziah Hanim; Al-Swidi, Abdullah Kaid
May 2014
Middle East Journal of Scientific Research;2014, Vol. 21 Issue 5, p792
Academic Journal
This study aims to examine the relationship between audit committee characteristics and firm performance Oman. It also attempts to explore the moderating effect of the board diversity on the association between audit committee characteristics and firm performance and to fill the gap in the existing literature that examined the relationship between corporate governance and firm performance in the developing countries. The data is comprised of 162 non-financial companies listed on Muscat Security Market (MSM) through 2011 and 2012. This study used some assumptions in order to test independent variables, moderating variables and dependent variables as provided in the method section. This study revealed a positive association between audit committee size and audit committee meeting to firm performance but not significant. On the other hand, a negative but insignificant relationship was found between audit committee independence and firm performance. Moreover, this study revealed that the foreign members of the board have a significant moderating effect on the relationship between audit committee independence and firm performance. At the end, this study provides some future recommendations.


Related Articles

  • Lack of diverse boardroom thinking.  // Governance Newsletter;Sep2015, Issue 255, p4 

    The article discusses the study regarding the impact of the corporate governance in the performance of a company. Topics discussed include the core aspects of corporate governance such as business culture, board composition, and strategic planning, the importance of industry experience of board...

  • Firm Performance and Board Political Connection: Evidence from Nigeria. OSAMWONYI, Ifuero Osad; TAFAMEL, Ehiabhi Andrew // European Journal of Business & Management;2013, Vol. 5 Issue 26, p83 

    This study explores whether board political connection is important to firms performance in Nigeria which has a growing financial market. The study also provides a descriptive analysis of firms whose board members are politically connected in the context of Nigeria, with a special focus on their...

  • Gender Diversity and Firm Performance: Evidence from Malaysian Public Listed Firms. Johl, Satirenjit Kaur; Kaur, Shireenjit // International Proceedings of Economics Development & Research;2013, Vol. 57, p152 

    The purpose of this research paper is to empirically examine the impact of boardroom gender diversity/ involvement on firm performance. The paper uses both financial and non financial data from annual reports of the 700 public listed firms in Malaysia for the year 2009. The results show that...

  • Women on the Board and Managers' Pay: Evidence from Spain. Lucas-Pérez, Maria; Mínguez-Vera, Antonio; Baixauli-Soler, Juan; Martín-Ugedo, Juan; Sánchez-Marín, Gregorio // Journal of Business Ethics;Jun2015, Vol. 129 Issue 2, p265 

    The current literature shows great interest in the issue of gender diversity on boards of directors. Some studies have hypothesized a direct relationship between diversity and the value of the firm, but not many examine the intermediate mechanisms that may exert an influence on such...

  • Audit Committee Mechanism to Improve Corporate Governance: Evidence from a Developing Country. Bhasin, Madan Lal // Modern Economy;Nov2012, Vol. 3 Issue 7, p856 

    Nowadays, an audit committee (AC) is being looked upon as a distinct culture for CG and has received a wide-publicity across the globe. Government authorities, regulators and international bodies all have indicated that they view an AC as a potentially powerful tool that can enhance the...

  • Directors Who Deserve Respect. Allen, William T. // Directors & Boards;Fall92, Vol. 17 Issue 1, p76 

    The author reflects on the role of company directors. He suggests that board of directors should provide the appropriate corporate governance. He believes that those in the position want to do the right thing because they want to deserve the respect they get. He asserts that it is the potential...

  • A Catalyst for IT Governance. Smith, Edward F. // NACD Directorship;Sep2007, Vol. 33 Issue 4, p75 

    The article reports on the review of information technology (IT) governance by the Audit Committee Institute (ACI). It was found that oversight on IT governance by the management and oversight by the board of directors is imperative. Suggestions to reduce IT governance risk include focusing on...

  • Help or Hindrance? Lockhart, James // New Zealand Management;Nov2006, Vol. 53 Issue 10, Special section p7 

    The author reflects on the true role of board committees in New Zealand. According to the author, a common suspect in our search for good governance has become the impact of the independent audit committee. He states that the second common sub-committee of the board is the...

  • Governance and the Common Good. Carcello, Joseph // Journal of Business Ethics;May2009 Supplement 1, Vol. 89, p11 

    The importance of corporate governance in ensuring reliable financial reporting is examined in this article, and the roles of individuals involved in the governance process are examined from the perspective of ensuring the common good. Initially, adopting the positivist tradition that dominates...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics