Proceedings of 11th International Business and Social Science Research Conference
8 - 9 January, 2015, Crowne Plaza Hotel, Dubai, UAE. ISBN: 978-1-922069-70-2
The Effect of the Audit Committee on the Firms’ Performance in
the UAE
Ayda Farouq Farhan* and Siti Normala**
Corporate
governance
defined
as
the
collection
of
mechanisms
designed and adopted to control the management decision making and
implementing activities, which is expected to affect positively the firms’
performance, firm's market value, and the resources of capital. The audit
committee is a key internal corporate governance mechanism. This
study examines the effect of the internal audit committee characteristics
on the firms’ performance in the UAE. The audit committee’s
characteristics which will be examined are: the audit committee
member’s independence, the number of the financial experts in the
committee, the number of meetings held during the year, and the
incentives received by the audit committee members. This paper uses
all the public listed corporations in the UAE financial markets. The
secondary data for three years are going to be used starting from 2011
where the mandatory corporate governance code had been mandated.
This study is supposed to fill the gap of the lack in the corporate
governance studies based on the UAE. Besides that this study
investigates the audit committee’s characters effect on the firms’
performance not only the existence of the audit committee.
Name of the Track: Accounting
*
Mrs. Ayda Farouq Farhan, (PhD Candidate at IIUM), Lecturer at Al Khawarizmi International College, Al Ain,
UAE. Email: ayda.farouq@khawarizmi.com . Tel.: +971 55 9437959. Fax: +971-3-7555004
**Dr. Siti Normala Department of Accounting, IIUM, Kuala Lumpur, Malaysia. Email: snormala@iium.edu.my