Title: The effect of audit committee characteristics on the firm's performance: an empirical study of Pakistan Stock Exchange

Authors: Sahibzada Kashif Ahmad; Atta Ur Rahman; Fahad Abdullah; Shabir Ahmad; Laila Taskeen Qazi

Addresses: Institute of Management Sciences, 1-A, E-5, Phase 7, Hayatabad, Peshawar, Pakistan ' Department of Economics, Institute of Management Sciences, 1-A, E-5, Phase 7, Hayatabad, Peshawar, Pakistan ' Department of Business Administration, Institute of Management Sciences, Peshawar. Pakistan ' Department of Commerce and Management Sciences, University of Malakand, Chakdara, Pakistan ' Department of Business Administration, Institute of Management Sciences 1-A, E-5, Phase 7, Hayatabad, Peshawar, Pakistan

Abstract: The purpose of this study is to investigate the impact of audit committee characteristics on firms' performance. We used gender diversity, size of the committee, frequency of audit meetings, financial expertise, and independence as audit committee characteristics and return on assets and return on equity as performance measures. A panel of 94 firms was investigated from 2015 to 2019 using a weighted least square regression. The overall results show that the size of the audit committee negatively affects the firms' performance. While the frequency of meetings, expertise, and gender diversity positively impact the firms' performance. Indicating the significance of frequent communication, experience, and presence of women in audit committees, respectively. Our study highlights insight for policymakers and regulators considering ongoing corporate governance and regulatory reforms in Pakistan.

Keywords: corporate governance; audit committee characteristics; performance; Pakistan.

DOI: 10.1504/IJEPEE.2025.148863

International Journal of Economic Policy in Emerging Economies, 2025 Vol.22 No.3/4, pp.291 - 314

Received: 03 Sep 2021
Accepted: 14 May 2022
Published online: 30 Sep 2025 *

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