Audit committee characteristics and financial reporting quality: Evidence from the emerging market

Abstract

This paper seeks to provide empirical evidence regarding the effect of audit committee (AC) characteristics on the financial reporting quality (FRQ) in the Jordanian context. The sample was selected from nonfinancial Jordanian companies during 2016 and 2023. This specified period permits for the study of tendencies and altertions throughout time (Callahan & Soileau, 2017). This study used panel regression analysis and the random effect method to achieve the study aim. The study found a positive and significant relationship between audit size, gender diversity, independence, number of audit meetings, and FRQ. The results could benefit some financial information users, such as investors, and regulators. This paper has the goal of informing interested parties in auditing and managers about the value of selecting the right members of the AC since they contribute to enhancing the FRQ. It also adds to the existing literature by providing empirical evidence regarding the effect of AC characteristics on FRQ. Therefore, our research advances our understanding of the intricate relationships between AC as a corporate governance tool and FRQ by elucidating the precise roles that different AC characteristics play in influencing the accuracy and reliance of financial reports.