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The Influence of Audit Committee Effectiveness on Banks' Performance in Yemen

Author

Listed:
  • Yahya Ali Al-Matari

    (School of Economics, Finance and Banking, Universiti Utara Malaysia, Malaysia,)

  • Abdo Ali Homaid

    (School of Business Management, Universiti Utara Malaysia, Malaysia,)

  • Hassan Alaaraj

    (School of Economics, Finance and Banking, Universiti Utara Malaysia, Malaysia.)

Abstract

This study aims at examining the effect of audit committee (AC) effectiveness characteristics namely, the frequency of meeting between AC and internal auditors, AC reviews of the internal audit proposals and AC reviews of the internal audit results on the performance of the bank's performance. The study utilized a survey questionnaire method targeting 20 banks operating in Yemen. The result of the study was based on 112 usable questionnaires. The findings showed that there is a significant relationship between the three AC effectiveness characteristics and the performance of banks. Review of literatures concerning the AC characteristics used in this study are presented, the practical implications and the suggestions for future research works are also highlighted.

Suggested Citation

  • Yahya Ali Al-Matari & Abdo Ali Homaid & Hassan Alaaraj, 2016. "The Influence of Audit Committee Effectiveness on Banks' Performance in Yemen," International Journal of Economics and Financial Issues, International Journal of Economics and Financial Issues, vol. 6(4), pages 1424-1428.
    • Handle: RePEc:eco:journ1:2016-04-19
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    References listed on IDEAS

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    Cited by:

    1. Saddam A. Hazaea & Ebrahim Mohammed Al-Matari & Saleh F. A. Khatib & Khaldoon Albitar & Jinyu Zhu, 2023. "Internal Auditing in the Arab World: A Systematic Literature Review and Directions for Future Research," SAGE Open, , vol. 13(4), pages 21582440231, October.
    2. Ahmad Ibrahim Karajeh & Mohd Yussoff B. Ibrahim, 2017. "Impact of Audit Committee on the Association Between Financial Reporting Quality and Shareholder Value," International Journal of Economics and Financial Issues, International Journal of Economics and Financial Issues, vol. 7(3), pages 14-19.
    3. Muhammad Jameel Hussain & Yang Qian & Muhammad Usman & Khalil Hussain, 2025. "Leading Green: The Role of CEO Social Trust and Governance in Driving Sustainable Innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 34(8), pages 10256-10277, December.
    4. Achraf Haddad & Anis El Ammari & Abdelfattah Bouri, 2021. "Impact of Audit Committee Quality on the Financial Performance of Conventional and Islamic Banks," JRFM, MDPI, vol. 14(4), pages 1-24, April.

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    Keywords

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    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting

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