Author:
Benjamin Samuel Jebaraj,Karrahemi Kiarash Ehtiat
Abstract
The study concentrates on audit committee characteristics and their influences on free cash flow. A panel of 120 firms from the trading and services industry from the year 2005 to 2008 is examined. The results show a significant and positive relationship between Audit Committee characteristics (size, independence, frequency of meetings) and free cash flows. These findings suggest that effective audit committee governance leads to availability of higher free cash flows. Our study draws upon the lack of understanding on the impact of audit committee characteristics on free cash flow along the two views; agency theory and pecking order/transaction cost theory and finds support for the later.
Subject
General Business, Management and Accounting
Reference74 articles.
1. Abbott, L.J. Parker, S. and Peters, G.F. (2004), “Audit committee characteristics and restatements”, Auditing: A Journal of Practice and Theory, Vol. 23 No. 1, pp. 69-87.
2. Abbott L.J. and Parker S. (2000), “Auditor selection and audit committee characteristics”, Auditing: A Journal of Practice and Theory, Vol. 19 No. 2, pp. 47-66.
3. Abdelsalam, O., El-Masry, A., and Elsegini, S. (2008), “Board composition, ownership structure and dividend policies in an emerging market: Further evidence from CASE 50”, Managerial Finance, Vol. 34 No. 12, pp. 953-964.
4. Abdul Rahman, R. and Mohamed Ali, F. H. (2009), “Board, audit committee, culture and earnings management: Malaysian evidence”, Managerial Auditing Journal, Vol. 21 No. 7, pp. 783-804.
5. Agostinho, C.M.C and Canadas, N.M.R.P. (2010). “The free cash flow, corporate governance and corporate social responsibility: An Analysis for Euronext firms”, Conference on Environmental and Management Accounting, 4th GECAMB, The PortugeseCsear Conference, Leiria, 14 and 15 October 2010, pp. 1-19.
Cited by
7 articles.
订阅此论文施引文献
订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献