The audit committee (AC) plays a significant role in safeguarding shareholders’ wealth and protecting other stakeholders’ interests. In fact, the effectiveness of AC depends on its characteristics, which relate to the independence of the AC’s members, the size of the AC and the frequency of the meetings. Indeed, the researcher tried to capture the effect of AC characteristics on corporate financial performance (CFP), as measured by return on equity (ROE), and return on assets (ROA). To test the nature of the relationship between AC characteristics and corporate financial performance, the researcher applied the Multiple Regression analysis. This empirical study is conducted on a sample of 15 of UK companies that are listed on the London Stock Exchange (LSE), over a period of three years from 2010 to 2012. The regression analysis showed satisfactory findings that reflect the importance of AC characteristics in improving CFP of the UK listed companies. In this study, while the size and frequency of the AC meetings are found to be positively affecting CFP, no significant relationship is found between AC independence and CFP.
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