The effect of corporate governance and ownership structure on audit committees’ effectiveness : evidence from the Jordanian industrial public shareholding companies

Other Title(s)

أثر الحاكمية المؤسسية و أشكال الملكية على فاعلية لجان التدقيق : دراسة ميدانية على الشركات الصناعية المساهمة العامة الأردنية

Dissertant

Warrad, Lina Hani

Thesis advisor

Abd Allah, Khalid Amin

Comitee Members

al-Kharabishah, Abd Abd al-Hamid
Husayn, Nizam Muhammad Ali
al-Sharayiri, Adil Majid

University

Arab Academy for Financial and Banking Sciences

Faculty

The Faculty of Banking and Financial Sciences

Department

Accounting Department

University Country

Jordan

Degree

Ph.D.

Degree Date

2010

English Abstract

The study aimed at investigating the effect of Corporate Governance and ownership structure on the Audit Committee effectiveness.

The descriptive approach was used.

The sample consisted of (56) Jordanian industrial public shareholding companies out of (107) representing the total population.

The degree of Audit Committees effectiveness was examined by a questionnaire consisting of (80) items forming five aspects : Organizational Structure, Independence, Procedures and Resources, Responsibilities, Financial Reporting and Compliance, while the Corporate Governance was represented by the percentage of voting capital owned directly by the largest shareholder (VCODLS), percentage of voting capital owned directly by the three largest shareholders (3VCODLS), whether the manager is one of the largest owners who own more than 5% (MANAG), and moderating variables was represented by the firm market value (FMV), industry, and firm size.

The sample was selected randomly from the Audit Committees’ members.

Data was then analysed using SPSS package.

Frequencies Percentages, Means, Standard Deviations, One Way ANOVA followed by REGWF (Ryan Einot Gabrel Welch F) post hoc test ; and Linear Regression analysis was used to investigate relationship between Corporate Governance and Audit Committees effectiveness.

It was concluded that there are no significant differences between Corporate Governance and Audit Committees effectiveness.

Moreover, the Audit Committees effectiveness is affected by different types of ownership structure especially in foreign companies while it decreases in the family Structure.

The Audit Committees effectiveness is also affected by the moderate industries companies compared to the mild and heavy industries respectively.

When studying the effect of the firm size, the relationship between Corporate Governance and Audit Committees effectiveness revealed a non-significant relationship in large firms.

Concerning the firm’s value, the relationship between Corporate Governance and Audit Committees revealed a non-significant relationship in the companies whose stock market value is less than the value of a company's equity book value.

Main Subjects

Financial and Accounting Sciences

Topics

• Accounting
• Auditing
• Business enterprises
• Jordan
• Corporate governance

No. of Pages

171

Table of Contents

• APA
• MLA
• AMA

Language

English

Data Type

Arab Theses

Record ID

BIM-307041