The effect of characteristics of the audit committee on the quality of the enterprise risk on companies listed on the stock exchange

Subject Areas : Financial Economics

yaghoob Daneshi ¹ , احمد یعقوب نژاد ²

1 - Department of Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran,
2 - گروه حسابداری، واحد تهران مرکزی، دانشگاه آزاد اسلامی، تهران، ایران

Received: 2022-08-22 Accepted : 2024-08-11 Published : 2024-09-11

Keywords: quality of enterprise risk management system, characteristics of the audit committee, companies listed on the stock exchange,

Abstract :

According to agency theory, a company is contractual relationships network among different stakeholders with different interests. The audit committee is a governance mechanism that According to agency theory, a company is contractual relationships network among different stakeholders with different interests. The audit committee is a governance mechanism that needs to function effectively in order to favor this balanced value distribution. The impact of these characteristics on both boards of directors' and their committees' behavior and performance. The purpose of this study is to investigate the effect of the characteristics of the audit committee on the quality of enterprise risk management systems in companies listed on the Tehran Stock Exchange. The statistical population of the research is 485 companies listed on the Tehran Stock Exchange in a period of 7 years from 1392 to 1398, of which 101 companies were selected as a sample. The variables of board independence, level of training of the audit committee, educational diversity of members of the audit committee, number of meetings of the audit committee and number of members of the audit committee were used as indicators of the characteristics of the audit committee. The results of the combined regression model test showed that all the characteristics of the audit committee have a significant and positive effect on the quality systems of enterprise risk management in the studied companies.

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