Audit Committee Characteristics and Profitability: A Case of Listed Companies at Dar es salaam Stock Exchange
DOI:
https://doi.org/10.59645/abr.v13i1.6Keywords:
DSE, Stock Exchange, Audit, ProfitabilityAbstract
The main objective of this study was to examine the influence of Audit Committee (AC) characteristics namely AC financial expertise and AC size on the profitability of listed companies at Dar es Salaam Stock Exchange (DSE). This was an explanatory study using survey design and was guided by the agency theory. Random sampling method was used to get 14 listed companies from the population of 28 listed companies at DSE. An unbalanced panel of annual quantitative secondary data from the selected companies covering eleven years from 2008 to 2018 was used. The Random Effects regression estimation model was used and the findings showed that AC financial expertise had positive but insignificant influence on the profitability (ROA) of listed companies at DSE, while AC size had a significant negative influence on ROA. Further researches on the optimal AC size that positively enhances profitability of a listed company at DSE are recommended.
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