Impact of Audit Committee Quality on Corporate Governance: The Case of Select Indian Listed Firms

Kanukuntla Shankaraiah and Seyed Masoud Sajjadian Amiri

The study focuses on the association between audit committee quality characteristics and corporate governance quality, so as to improve the quality of corporate governance by understanding and managing the audit committee characteristics. It is found in the study that in most of the equity based listed companies at Bombay Stock Exchange (BSE) under study, have complied with the legal formalities like appointment of independent directors, number of meetings, size of the audit committee, legal qualifications and financial qualifications of the directors, as they were required for the listing at a stock exchange in India. Further, the analysis and tests stated that though the audit committee quality characteristics have association with corporate governance quality, except the proportion of independent directors on audit committee and number of audit committee meetings, other attributes have shown no impact on later, thus it may be suggested that the companies may improve the corporate governance, by taking more independent directors and conducting more number of audit committee meetings.

DOI : https://doi.org/10.21102/graf.2017.03.81.01