Audit Committee Characteristics and Firm Performance in Oman

The role of an audit committee (AC) is very significant to stakeholders in influencing the quality of disclosure of financial reporting and in improving market performance. This study examines the influence of audit committee characteristics (AC multiple directorship, AC size, AC independence, AC meeting, AC chairman independence, AC diligence) and firm market performance using Tobin’s Q. Our sample consists of all 82 firms listed on the Muscat Stock Market (MSM) as in 2014 to 2015, excluding the financial and banking sectors.Data were gathered from firms’ annual financial reports and Data Stream.We used multiple regression in analyzing the data.Our results show that AC multiple directorship and AC diligence influence firm market performance.We also find that the control variables (firm size and leverage) are significant in influencing firm performance.This study provides significant input to regulators, firms and researchers not only in Oman, but also in other countries.We recommend future studies to take into account some other variables such as foreign audit committee members, and other variables that may have a significant role in improving firm performance