Audit committee chair effectiveness and firm performance: The mediating role of sustainability disclosure

Ahmad Yuosef Alodat, Hamzeh Al Amosh, Saleh F. A. Khatib and Marwan Mansour

Cogent Business & Management, 2023, vol. 10, issue 1, 2181156

Abstract: The primary goal of this study is to investigate the influence of sustainability disclosure (SD) practices on the relationship between audit committee chair characteristics and firms’ performance. The current study used an experimental approach to data collection and analysis. The predicted variable is the AC chair characteristics; the predictor variables are the performance indicator’s return on equity (ROE). The study investigated the indirect impact of the mediating role in the SD index. We manually analysed 405 annual reports of the companies listed on the ASE from 2014 to 2018. The findings revealed a significant and positive relationship between the accounting expertise, tenure, and monitoring expertise of the AC chairs and the performance of the firm measures tested, namely, ROA and ROE. Meanwhile, AC chair experiential expertise types and firm performance measures have a positive but insignificant relationship. Furthermore, the findings revealed that sustainability disclosure mediates the relationship between AC chair effectiveness and ROE in part. The results of this study will help firms understand the expertise of AC chair characteristics that can help firms in Jordan to perform better. The findings indicated that the effectiveness of AC chairs contributes to improved firm performance through sustainability practices. This study is one of the few studies that dealt with AC chair characteristics and one of the first studies that linked this variable to firm performance. Furthermore, our selection of the Jordanian context emphasizes the topic’s importance, as it is one of the developing contexts that has recently seen regulatory reforms in financial markets. It also expands on previous research by looking at Jordan’s listed ASE firms.

Date: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://hdl.handle.net/10.1080/23311975.2023.2181156 (text/html)
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:taf:oabmxx:v:10:y:2023:i:1:p:2181156

Ordering information: This journal article can be ordered from
http://cogentoa.tandfonline.com/journal/OABM20

DOI: 10.1080/23311975.2023.2181156

Access Statistics for this article

Cogent Business & Management is currently edited by Len Tiu Wright and Tahir Nisar

More articles in Cogent Business & Management from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().