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Audit Committee and Financial Performance in Jordan: The Moderating Effect of Ownership Concentration by Ahmad Marei is a Economics, Econometrics and Finance article available to read on EtoBox.

What is Audit Committee and Financial Performance in Jordan: The Moderating Effect of Ownership Concentration about?

Ownership concentration (OC) can affect a wide range of corporate governance (CG) mechanisms. Jordan is characterized by high OC such as family ownership and managerial ownership. The effectiveness of the audit committee (AC) as one of the major CG mechanisms is affected by OC, which in turn, affects accounting and market-based performance among Jordanian listed companies. Based on this fact, it is believed that OC can moderate the relationship between AC on accounting and market based performance in Jordan. The main purpose of this study is to examine the moderating effect of OC between audit committee effectiveness (ACE) and accounting and market based performance in Jordan. This study used data obtained from 828 firm-year observations of companies listed in Amman stock exchange (ASE) in industrial and service sectors from 2009 to 2017. The findings display that OC has a direct positive effect on ROE and ROA and a negative direct effect on TQ. The results revealed that OC positively moderated the relationship between ACE and ROE as well as ROA. However, OC did not moderate the effect of ACE on Tobin's Q (TQ). Overall, the hypotheses are accepted in terms of ROA and ROE while it i

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Author

Ahmad Marei

Publisher

Centre of Sociological Research, NGO

Published

2021

Language

EN

Field

Economics, Econometrics and Finance (Social Sciences)