Audit committee characteristics and firm performance during the global financial crisis

Husam Aldamen, Keith Duncan, Simone Kelly, Raymond McNamara, Stephan Nagel

Research output: Contribution to journalArticleResearchpeer-review

45 Citations (Scopus)

Abstract

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 blockholder 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. 

Original languageEnglish
Pages (from-to)971-1000
Number of pages30
JournalAccounting and Finance
Volume52
Issue number4
DOIs
Publication statusPublished - Dec 2012

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Audit committee
Global financial crisis
Firm performance
Accounting performance
Governance
Blockholders
Financial expertise
Financial distress
Economics

Cite this

Aldamen, Husam ; Duncan, Keith ; Kelly, Simone ; McNamara, Raymond ; Nagel, Stephan. / Audit committee characteristics and firm performance during the global financial crisis. In: Accounting and Finance. 2012 ; Vol. 52, No. 4. pp. 971-1000.
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Audit committee characteristics and firm performance during the global financial crisis. / Aldamen, Husam; Duncan, Keith; Kelly, Simone; McNamara, Raymond; Nagel, Stephan.

In: Accounting and Finance, Vol. 52, No. 4, 12.2012, p. 971-1000.

Research output: Contribution to journalArticleResearchpeer-review

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