Impact of audit committee attributes on financial distress: Evidence from Pakistan

Muqaddas Khalid, Qaisar Abbas, Fizzah Malik () and Shahid Ali
Additional contact information
Muqaddas Khalid: Department of Management Sciences, COMSATS University Islamabad, Lahore Campus, Pakistan
Qaisar Abbas: Department of Management Sciences, COMSATS University Islamabad, Lahore Campus, Pakistan
Shahid Ali: #x2020;School of Management, Xi’an Jiaotong University, Xi’an, Shaanxi, P. R. China

International Journal of Financial Engineering (IJFE), 2020, vol. 07, issue 01, 1-19

Abstract: This research study compares the financially distressed and financially healthy companies, based on their audit committee attributes over the 2006–2010 period. While focusing on the manufacturing sector of Pakistan, the logit regression results reveal that audit committee composition and audit committee opinion have significant impact on the financial distress of the companies while audit committee size has insignificant impact on financial distress. The first of its kind, this study, benefits investors, financial analysts, accounting professionals, and practitioners. Their decision-making process will be enhanced regarding the evaluation of financially distressed companies and financially healthy ones. Despite its limitations, this study fills up the literature gap by focusing on the financially distressed firms that have not yet been bankrupted, thus giving them a chance to restructure their policies regarding the implementation of corporate governance practices in the context of Pakistan. This study has ignored financial sector of Pakistan because of different reporting styles of financial firms. The periods before and after the period of financial distress have also been ignored in the study.

Keywords: Financial distress; audit committee attributes; Pakistan (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/abs/10.1142/S242478632050005X
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:ijfexx:v:07:y:2020:i:01:n:s242478632050005x

Ordering information: This journal article can be ordered from

DOI: 10.1142/S242478632050005X

Access Statistics for this article

International Journal of Financial Engineering (IJFE) is currently edited by George Yuan

More articles in International Journal of Financial Engineering (IJFE) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().