دانلود رایگان مقاله انگلیسی پذیرش کمیته حسابرسی و ارزش شرکت: شواهد از موسسات مالی بریتانیا - امرالد 2018

Abstract

Purpose: This study examines the impact of audit committee (AC) adoption on the financial value of financial institutions in the UK and also examines the impact of the establishment of an audit committee on firm value during the pre/post global financial crisis era. Design/methodology/approach: The paper embarks on a theoretical and empirical literature review on audit committee (AC) adoption and its impact on the firm’s financial value. The paper uses data from 63 financial institutions and covers a 12-year period. Findings: The empirical results indicate that the adoption of an AC by financial institutions has a positive and statistically significant impact on firm value. The results from the precrisis period also indicate the adoption of an AC makes a positive and significant contribution to firm value. However, there is no impact on firm value during the post-crisis period. Our results suggest that the entire UK economy experienced an economic downturn after the financial crisis (2009-2011) and financial firms were no exception. Research limitations/implications: Our study helps to fill research gaps on the relationships between ACs and firm value as they exist in UK financial institutions. These findings are important for policy-makers and regulators. Originality/value: To the best of our knowledge, this research is the first to conduct an empirical study of the effect of AC adoption on UK financial institutions and firm value. Second, no single study has been conducted on the effects of AC adoption and its impact on either the pre- or the post-financial crisis periods. This is the first paper to provide such empirical evidence.

5. Summary and Conclusions

This paper has investigated the association between the adoption of an AC and firm’s value using a sample of 63 financial institutions from 2000-2011. This empirical research has underpinned the finding that the establishment of an AC has a positive and statistically significant effect on a firm’s value. The pre-crisis period also indicates that the establishment of an AC has a positive and statistically significant effect on a firm’s value. However, the establishment of an AC did not impact on a firm’s value during the postfinancial crisis period. The post-crisis results indicate that an AC has no statistically significant relationship with a firm’s value. Our results suggest that, even though the financial crisis was over after 2009, the entire UK economy was still experiencing the effects of an economic downturn and financial firms were no exception (Review of HM Treasury’s response to the financial crisis report, 2012)3 .

This paper contributes to the existing theoretical corporate governance literature in the following ways: the paper reaffirms that the corporate governance code in the UK addresses any agency costs that exist among firms, and the adoption of an AC as part of a best corporate governance practice will help reduce agency costs and information asymmetry by ensuring that a firm’s activities are conducted in line with the principal’s and the agent’s expectations. Therefore, our result is consistent with agency theory predictions. The paper also gives a better understanding of AC adoption and its financial impact on UK financial institutions. This supports the given hypotheses and attests that the adoption of an AC by a UK financial institution will improve their corporate governance mechanisms.