Audit committee chair expertise and firm performance: A case study of listed financial firms in Kenya
| dc.contributor.author | Jonathan, Osca | |
| dc.contributor.author | Magoma, Anthony | |
| dc.date.accessioned | 2025-10-30T09:58:15Z | |
| dc.date.available | 2025-10-30T09:58:15Z | |
| dc.date.issued | 2024-11 | |
| dc.description.abstract | This study examines the influence of Audit Committee (AC) chair expertise on financial performance, as measured by the return on assets (ROA) of listed financial firms on the Nairobi Securities Exchange (NSE) in Kenya. It specifically focuses on three explanatory variables of AC chair expertise: monitoring expertise, accounting and financial expertise, and experiential expertise. Despite the important governance role played by audit committees, there is limited empirical evidence exploring how the specific expertise of audit committee chairs affects firm performance. The present study seeks to fill the gap by assessing the relationship between AC chair expertise and financial performance. Agency and Human Capital theories were used as the theoretical foundation. A quantitative approach was used to collect secondary data from the annual reports and audited financial statements of 18 listed financial firms at NSE from 2016 to 2022, resulting in a balanced panel of 126 data points. Fixed-effects panel regression model was used to test the hypotheses. The results revealed that AC's experiential expertise significantly influenced the firm’s financial performance. The study concludes that AC’s experiential expertise is the key determinant of financial performance among listed financial firms in Kenya. Furthermore, the study recommends that listed financial firms in Kenya should prioritize the appointment of AC chairs in the audit committees with substantial experience, particularly those with over three years of relevant experience. | |
| dc.identifier.issn | 2591-6815 | |
| dc.identifier.uri | https://repository.tia.ac.tz/handle/123456789/241 | |
| dc.publisher | African Journal of Accounting and Social Science Studies (AJASSS) | |
| dc.relation.ispartofseries | Vol. 2; Issue 2 | |
| dc.subject | Audit committee chair expertise | |
| dc.subject | financial performance | |
| dc.subject | listed financial firms | |
| dc.subject | Kenya. | |
| dc.title | Audit committee chair expertise and firm performance: A case study of listed financial firms in Kenya | |
| dc.type | Presentation |