The effect of ownership structure, audit quality, audit committee characteristics and the performance of listed firms in ghana
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Date
2023
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KNUST
Abstract
This study considered the relationship between audit quality, ownership structure and audit committee characteristics on firms’ financial performance listed on Ghana Stock Exchange (GSE). Generally, the study sort to examine the relationship between ownership structure and firm performance; identify the effect of audit quality on firm performance; and examine the impact of audit committee characteristics on the performance of firms. Fifteen (15) listed firms on the GSE were studied, using data from their annual reports. OLS panel regression model was employed with firm performance as the dependent variable and audit quality, audit committee characteristics and ownership structure as the independent variables. Results of the study revealed that audit quality has an insignificant inverse relationship with firm performance, except for TBQ which showed a positive relationship. Also, audit committee size had an insignificant positive relationship with ROE and ROA, but has a negative association with TBQ. For audit committee independence, it was revealed to have an insignificant relationship with the performance of listed firms in Ghana but has a significant positive relation with TBQ. Based on the major outcomes of the study, it is recommended that corporate entities ought to reconsider institutional ownership since it does not have any significant relationship on the performance of a firm. Again, shareholders and board members ought to consider hiring the services of non-Big 4 firms as audit quality had an inverse relationship with ROE and ROA but positive relations with TBQ.
Description
Thesis submitted to the Kwame nkrumah university of science and technology, kumasi in partial fulfilment of the requirement for the award of master of science in business administration (accounting option)