The effect of audit committee characteristics on financial performance - evidence from selected listed non-financial companies on the Ghana stock exchange

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The main objective of the study was to investigate the effect of audit committee characteristic on financial performances with a focus on Listed Ghanaian Non-financial companies. Specifically, the study focused on the trends of performance of listed non-financial companies on the GSE between 2013 to 2019and the relationship between committee characteristics and the performance of listed non-financial companies on the GSE using quantitative research design and annual data from listed Ghanaian Non-financial companies. Using EVIEW version 11 and OLS regression the study found that audit committee features and financial performance have undulating trends. The results further show that audit committee characteristic and financial performance takes a sharp upsurge direction in some years suggesting stability within that year. Again, the results suggest that have direct relationships with performance in the short while but these changes in the long while. The study found that, audit committee diversity as well as audit committee remuneration were significant determinants of performance. Also, inflation was a significant determinant of performance. However, audit committee meetings and audit committee size were insignificant determinant of non-financial listed companies’ performance. This study recommends that there is the need to ensure fair gender distribution in the structure of governing board to man the affairs of the non-financial companies since the present study reveals that gender diversity is a determinant of a firm performance. Moreover, it is imperative to incorporate the frequency of the board meeting in its composition because of its influence on the performance. Finally, management should invest in innovation to facilitate the work of the audit committee.
A thesis submitted to the department of accounting and finance, Kwame Nkrumah university of science and technology, school of business in partial fulfillment for the award of Master of science in accounting and finance