Audit Committee, Financial Condition, and Firm Performance: Empirical Evidence From Indonesia

Wibawaningsih, Ekawati Jati; Surbakti, Lidya Primta

doi:10.38035/jafm.v1i2.29

Cited by 8 publications

(10 citation statements)

References 27 publications

(36 reference statements)

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“…With better supervision, it will be able to improve company performance and at the same time increase company value. The same result can also be proved by Shatnawi et al (2021); Wibawaningsih et al (2020) for the characteristics of the audit committee expressed by the frequency of audit committee meetings. The high number of audit committee meetings indicates that the audit committee has high persistence in carrying out supervisory duties on the company so that it can improve company performance which in turn will also increase company value.…”

Section: Effect Of Audit Committee On Firm Valuesupporting

confidence: 78%

The Role of Audit Committee on Firm Value and Financial Performance of Indonesian Manufacturing

2022

QAS

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The purpose of this study was to analyze the relationship between the audit committee and financial performance and firm value in the manufacturing sector. Testing of data processing and analysis in this study was carried out using SPSS. The population in this study amounted to 263 manufacturing companies. From this population, the number of samples to be studied in this study can be determined. The sampling technique used is random sampling, namely the selection of samples at random, the sampling technique is a technique that is more suitable for research using multiple regression analysis. The sample of this research is 150 which will be taken randomly from the existing population. Based on the results of data analysis and discussions that have been carried out by researchers regarding the influence of the audit committee on the company's financial performance and firm value in manufacturing sector companies listed on the IDX. So, it can be concluded that the audit committee has an influence on firm value; 2) The Audit Committee has an influence on the company's financial performance.

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Section: Effect Of Audit Committee On Firm Valuesupporting

confidence: 78%

The Role of Audit Committee on Firm Value and Financial Performance of Indonesian Manufacturing

2022

QAS

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“…Barka and Legendre (2017) document the negative impact of AC independence and the frequency of AC meetings on FP. On the other hand, Wibawaningsih and Surbakti (2020) found no significant influence of AC size, independence and expertise on FP. Zhou et al (2018) also report that AC size and independence have no significant impact on FP.…”

Section: Audit Committee Effectiveness and Firm Performancementioning

confidence: 72%

Does an effective audit committee influence firm performance? –The moderation role of knowledge intensity

Singhania,

Panda

2023

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Purpose This study aims to examine the relationship between audit committee (AC) effectiveness and firm performance (FP) with the moderation of knowledge intensity while observing the varying effect of each AC characteristic’s influence on its effectiveness. Design/methodology/approach This study examines 133 companies covering five years from 2016 to 2020 using the partial least squares-structural equation model and weighing AC effectiveness-related characteristics through multiple regression between AC characteristics and the AC effectiveness construct. Findings The results indicate that the knowledge intensity of the firms negatively influences the relationship between their AC effectiveness and FP, implying that the ACs are not sophisticated enough to monitor the knowledge component of the firm’s assets. Among AC characteristics, six attributes have a significant positive impact, two have a negative impact and three have no significant influence on AC effectiveness while influencing FP. Research limitations/implications Apart from guiding the regulators, managers and other stakeholders to choose an appropriate mix of AC characteristics for enhancing FP, the study contributes to the existing literature by providing evidence that ACs are ineffective in monitoring the knowledge assets of the company compared to physical assets. Originality/value This study is pioneering in investigating the moderation role of knowledge intensity on the relationship between AC effectiveness and FP. While providing a comprehensive and holistic view of AC effectiveness by considering 11 AC characteristics’ individual as well as aggregate effects on FP, it removes the obsolescence of earlier research in the Indian context owing to the latest regulatory reforms.

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“…This study uses two components of corporate governance: board characteristics and ownership structure. Proxies for board characteristics and ownership structure are extracted from previous studies (Chams & García‐Blandón, 2019; Wibawaningsih & Surbakti, 2020). For board characteristics, three proxies including board size, board independence and gender diversity are used in the study.…”

Section: Methodsmentioning

confidence: 99%

Section: Corporate Governancementioning

confidence: 99%

Does corporate social responsibility mediate the relationship between corporate governance and firm performance? Empirical evidence from BRICS countries

Akhter

Hassan

2023

Corp Soc Responsibility Env

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This study analyzes how corporate governance affects financial performance and explores the role of corporate social responsibility as a mediator for 495 firms located in emerging economies in BRICS countries, including Brazil, Russia, India, China, and South Africa from 2011 to 2021. This study evaluates the impact of various board characteristics such as board size, board independence, and gender diversity, as well as ownership structure elements such as family, foreign, and institutional shareholding, on firm performance in BRICS countries. This study uses a generalized method of moments (GMM) methodology to examine the relationship between corporate governance, corporate social responsibility (CSR), and firm performance. The results reveal that board attributes including size, independence, and gender diversity positively influence firm performance. All three components of ownership structure, family, foreign, and institutional shareholdings, positively affect firm performance. CSR partially mediates the positive relationship between corporate governance and firm performance. This study contributes to the literature by adding CSR as a mediating variable in the relationship between corporate governance and firm performance in BRICS countries. These findings suggest that managers must understand that effective corporate governance mechanisms are essential for better performance and should align their interests with firms' objectives. The mediation effect of CSR implies that policymakers should consider CSR as an additive tool to enhance firm performance rather than as an additional expenditure.

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Audit Committee, Financial Condition, and Firm Performance: Empirical Evidence From Indonesia

Cited by 8 publications

References 27 publications

The Role of Audit Committee on Firm Value and Financial Performance of Indonesian Manufacturing

The Role of Audit Committee on Firm Value and Financial Performance of Indonesian Manufacturing

Does an effective audit committee influence firm performance? –The moderation role of knowledge intensity

Does corporate social responsibility mediate the relationship between corporate governance and firm performance? Empirical evidence from BRICS countries

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