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Correlation Analysis of the Audit Committee and Profitability Indicators


  • Melinda Timea Fülöp

    (“Babeş-Bolyai” University of Cluj-Napoca, Romania)


The main role of corporate governance is to restore market confidence and in this process plays an important role the audit committee. The purpose of this case study is to analyze the correlations between the Audit Committee and profitability indicators. Considering the achievement of the objectives proposed in this research, our research is based on a deductive approach from general aspects to particular aspects that combines quantitative and qualitative studies. Theoretical knowledge is used for a better understanding of a phenomenon and not for making assumptions. Thus, in order to achieve our study, we selected 25 companies listed on Berlin Stock Exchange. Following this study, we concluded that the role of the audit committee is crucial.

Suggested Citation

  • Melinda Timea Fülöp, 2013. "Correlation Analysis of the Audit Committee and Profitability Indicators," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 13(1), pages 139-148.
  • Handle: RePEc:pet:annals:v:13:y:2013:i:1:p:139-149

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    References listed on IDEAS

    1. Cadbury, Adrian, 2002. "Corporate Governance and Chairmanship: A Personal View," OUP Catalogue, Oxford University Press, number 9780199252008, Decembrie.
    2. Jenny Goodwin-Stewart & Pamela Kent, 2006. "Relation between external audit fees, audit committee characteristics and internal audit," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 46(3), pages 387-404.
    3. Karen Cravens & Wanda Wallace, 2001. "A Framework for Determining the Influence of the Corporate Board of Directors in Accounting Studies," Corporate Governance: An International Review, Wiley Blackwell, vol. 9(1), pages 2-24, January.
    4. Stuart Turley & Mahbub Zaman, 2004. "The Corporate Governance Effects of Audit Committees," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 8(3), pages 305-332, June.
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    Cited by:

    1. Mariana Man & Maria Ciurea, 2016. "Elements of Corporate Governance Implementation in Romania, in the European Context," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 16(1), pages 151-166.

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    More about this item


    audit committee; independence; professional expertise;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing


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