Abstract
Malaysia is a developing economy which is one of the corporate leaders in South East Asian countries. Practicing audit committee is mandatory for public listed firms in Malaysia according to Bursa Malaysia Listing Requirements as well Malaysian Code of Corporate Governance. The purpose of this paper is to examine the association between audit committee characteristics and firm performance among public listed firms in Malaysia. This study employed EVA as performance measurement tool. The sample is 75 firm year observations and covers fiscal years 2008-2010. The study found that audit committee independence is positively associated with firm performance while audit quality is negatively associated in Malaysia. Overall, audit committee characteristics have a positive effect on firm performance. This study contributes to the literature as well as in empirical evidence on audit committee characteristics and firm audit quality. The results suggest that Big 4 firms have a negative impact on value based measure in Malaysia.
Subject
General Business, Management and Accounting
Reference71 articles.
1. Abdullah, S. N. (2001). Characteristics of Board of directors and Audit Committees. Akauntan Nasional, 14(10), 18-21.
2. Abdullah, S. N. (2004). Board Composition, CEO Duality and Performance among Malaysian Listed Companies. Corporate Governance, 4(4), 47-61.
3. Aggarwal R., Erel, I., Stulz, R. M. and Williamson, R. G. (2007). DO U.S. firms have the best corporate governance? A cross country examination of the relation between corporate governance and shareholder wealth. Fisher College of Business working paper no. 2006-03-06.
4. Ameer R., Ramli, F. and Zakaria, H. (2010). A new perspective on board composition and firm performance in an emerging market. Corporate Governance, 10(5), 647-661.
5. Anderson, A. M. Bey, R. P. and Weaver, C. S. (2004). Economic value added adjustments: Much to do about nothing?, Paper presented at the Midwest Finance Association Meetings, March, 2004.
Cited by
24 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