The Impact of Board and Audit Characteristics on the Financial Performance of UAE Listed Firms

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Khalifa H, Abdulfattah Mohamed G, Natoli, Riccardo ORCID: 0000-0002-9912-5692 and Zuhair, Segu (2020) The Impact of Board and Audit Characteristics on the Financial Performance of UAE Listed Firms. International Journal of Accounting and Financial Reporting, 10 (2). ISSN 2162-3082


Purpose – The purpose of this paper is to provide empirical insights on the impact of board and audit committee characteristics on the financial performance of United Arab Emirates (UAE) listed firms.Design/methodology/approach – A multiple regression panel model was employed for the period 2006 to 2015. The analysis incorporates Anderson Lagrange Multiplier test and Hausman test to determine if a fixed effects or random effects model should be employed.Findings – Our results demonstrated that board size and board meetings had a significant positive relationship with financial performance while there were also significant positive relationships between both audit committee composition and audit committee members’ education and firm financial performance.Research limitations/implications – The findings inform UAE firms about the benefits of employing directors with a more diverse skill set to enhance board effectiveness as well as having audit committee members hold a recognised qualification in finance or accounting to improve firm financial performance.Originality/value – Our study contributes to the CG literature by adding to the limited studies on CG in the UAE which help reduce the significant gap between foundation theories and practical applicability.

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Item type Article
DOI 10.5296/ijafr.v10i2.16481
Official URL
Subjects Historical > FOR Classification > 1501 Accounting, Auditing and Accountability
Historical > FOR Classification > 1502 Banking, Finance and Investment
Historical > FOR Classification > 1503 Business and Management
Current > Division/Research > VU School of Business
Keywords board of directors, UAE firm, corporate financial performance, corporate governance, United Arab Emirates
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