Corporate Characteristics and Effectiveness of Audit Committee: The Structural Equation Modeling Approach

Audit committee is one of the effective monitoring mechanisms to increase the quality of disclosure of the internal control system, which helps reduce the cost of representation. Hence, many researchers have argued that the existence of an effective audit committee can play effective role in improvi...

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Autores principales:	Rezvan Hejazi (Ph.D), Sedighe Azizi
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2018
Materias:	institutional shareholders composition of the board of directors the effectiveness of the audit committee the expertise of the members of the audit committee Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/11efc6d770c049e5b60be615fd9e67d4
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spelling	oai:doaj.org-article:11efc6d770c049e5b60be615fd9e67d42021-11-04T19:54:11ZCorporate Characteristics and Effectiveness of Audit Committee: The Structural Equation Modeling Approach2008-89142476-292X10.22103/jak.2018.11004.2510https://doaj.org/article/11efc6d770c049e5b60be615fd9e67d42018-10-01T00:00:00Zhttps://jak.uk.ac.ir/article_2079_424965aa2fc039111403ddca78c57172.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XAudit committee is one of the effective monitoring mechanisms to increase the quality of disclosure of the internal control system, which helps reduce the cost of representation. Hence, many researchers have argued that the existence of an effective audit committee can play effective role in improving the information system and in ensuring the credibility of the company's financial reports. Based on this argument, the present study examines the relationship between company's characteristics and the effectiveness of audit committee, regarding the approach of structural equation modeling. A sample of 147 companies listed in the Tehran Stock Exchange during the years 2013 to 2017 was selected. The effectiveness of audit committee (hidden variable) was measured by the observed variables of financial expertise, independence and size of audit committee, and the characteristics of the company (hidden variable) was measured by the observed variables of firm size, financial leverage, composition of the board of directors, institutional shareholders, profitability, liquidity , and company growth. After ensuring the correctness of measurement results and structural model, findings showed that size of company, financial leverage, composition of the board, shareholders, profitability, liquidity and company growth increase the effectiveness of audit committee.Rezvan Hejazi (Ph.D)Sedighe AziziShahid Bahonar University of Kermanarticleinstitutional shareholderscomposition of the board of directorsthe effectiveness of the audit committeethe expertise of the members of the audit committeeAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 9, Iss 3, Pp 89-114 (2018)
institution	DOAJ
collection	DOAJ
language	FA
topic	institutional shareholders composition of the board of directors the effectiveness of the audit committee the expertise of the members of the audit committee Accounting. Bookkeeping HF5601-5689
spellingShingle	institutional shareholders composition of the board of directors the effectiveness of the audit committee the expertise of the members of the audit committee Accounting. Bookkeeping HF5601-5689 Rezvan Hejazi (Ph.D) Sedighe Azizi Corporate Characteristics and Effectiveness of Audit Committee: The Structural Equation Modeling Approach
description	Audit committee is one of the effective monitoring mechanisms to increase the quality of disclosure of the internal control system, which helps reduce the cost of representation. Hence, many researchers have argued that the existence of an effective audit committee can play effective role in improving the information system and in ensuring the credibility of the company's financial reports. Based on this argument, the present study examines the relationship between company's characteristics and the effectiveness of audit committee, regarding the approach of structural equation modeling. A sample of 147 companies listed in the Tehran Stock Exchange during the years 2013 to 2017 was selected. The effectiveness of audit committee (hidden variable) was measured by the observed variables of financial expertise, independence and size of audit committee, and the characteristics of the company (hidden variable) was measured by the observed variables of firm size, financial leverage, composition of the board of directors, institutional shareholders, profitability, liquidity , and company growth. After ensuring the correctness of measurement results and structural model, findings showed that size of company, financial leverage, composition of the board, shareholders, profitability, liquidity and company growth increase the effectiveness of audit committee.
format	article
author	Rezvan Hejazi (Ph.D) Sedighe Azizi
author_facet	Rezvan Hejazi (Ph.D) Sedighe Azizi
author_sort	Rezvan Hejazi (Ph.D)
title	Corporate Characteristics and Effectiveness of Audit Committee: The Structural Equation Modeling Approach
title_short	Corporate Characteristics and Effectiveness of Audit Committee: The Structural Equation Modeling Approach
title_full	Corporate Characteristics and Effectiveness of Audit Committee: The Structural Equation Modeling Approach
title_fullStr	Corporate Characteristics and Effectiveness of Audit Committee: The Structural Equation Modeling Approach
title_full_unstemmed	Corporate Characteristics and Effectiveness of Audit Committee: The Structural Equation Modeling Approach
title_sort	corporate characteristics and effectiveness of audit committee: the structural equation modeling approach
publisher	Shahid Bahonar University of Kerman
publishDate	2018
url	https://doaj.org/article/11efc6d770c049e5b60be615fd9e67d4
work_keys_str_mv	AT rezvanhejaziphd corporatecharacteristicsandeffectivenessofauditcommitteethestructuralequationmodelingapproach AT sedigheazizi corporatecharacteristicsandeffectivenessofauditcommitteethestructuralequationmodelingapproach
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Corporate Characteristics and Effectiveness of Audit Committee: The Structural Equation Modeling Approach

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