Impact of Audit Committees on the Financial Performance Evidence from Jordan

Abstract

This study examines the effects of the correlation between corporate governance mechanisms (audit committees) on the financial performance in the Jordanian companies, the sample comprises of 115 companies, 690 observations, listed in ASE for the period from (2010-2015), thus our goal is the correlation between the audit committees and financial performance to financial data analysis quality test and effect on the earnings. The results of this research expose a strong relationship both the audit committees and performance, and the results of this study have significant inclusion that supports encouraging the enforcement of the principles of governance and controlling the behavior of these committees, the reliability of statements, financial information, and reports issued by companies can be enhanced. The current study bridges the previous literature gap by providing empirical evidence on the quality and efficiency of audit committees in Jordan as an emerging economy and its impact on financial performance.