The purpose of this study is to provide empirical evidence of the effect of the audit committee (AC) that are: size, independence, financial expertise, and stock owned by audit committee on firm performance measured by Tobin's Q among Jordanian companies. The present study formed by agency theory and resource dependence theory to achieve the aim of the study, wherein, the sample was 180 firms from the financial, industrial and service companies listed on ASE during the period from 2009 to 2017. By using the panel data method, the results demonstrate that the size of the audit committee, the independence of the audit committee, and the financial expertise of the audit committee have a positive and significant relationship with firm performance. While the relationship between stocks owned by the audit committee and firm performance is significantly negative. These findings provide shreds of evidence for all of the regulators, investors, and executives in Jordan into account when designing corporate regulations. Thus, this study offers empirical evidence to assist stakeholders, executives, and stakeholders in their decision.
Volume 12 | Issue 1