The authors would like to thank Tom Smith, Li-Anne Woo and conference participants at AFAANZ conference (2011) and the 9th International Conference on Corporate Governance, Birmingham for their helpful comments.
Audit committee characteristics and firm performance during the global financial crisis
Article first published online: 4 OCT 2011
© 2011 The Authors. Accounting and Finance © 2011 AFAANZ
Accounting & Finance
Volume 52, Issue 4, pages 971–1000, December 2012
How to Cite
Aldamen, H., Duncan, K., Kelly, S., McNamara, R. and Nagel, S. (2012), Audit committee characteristics and firm performance during the global financial crisis. Accounting & Finance, 52: 971–1000. doi: 10.1111/j.1467-629X.2011.00447.x
- Issue published online: 13 DEC 2012
- Article first published online: 4 OCT 2011
- Received 23 June 2011; accepted 23 August 2011 by Robert Faff (Editor).
- Corporate governance;
- Audit committee;
- Firm performance;
- Return on assets
We address the question ‘do governance enhancing audit committee (AC) characteristics mitigate the firm performance impact of significant-adverse-economic events such as the Global Financial Crisis (GFC)?’ Our analysis reveals that smaller audit committees with more experience and financial expertise are more likely to be associated with positive firm performance in the market. We also find that longer serving chairs of audit committees negatively impacts accounting performance. However, accounting performance is positively impacted where ACs include blockholder representation, the chair of the board, whose members have more external directorships and whose chair has more years of managerial experience. We contribute to the growing body of research on the impact of audit committee governance attributes on performance during times of financial distress.