Next Article in Journal
Relative Stock Market Performance during the Coronavirus Pandemic: Virus vs. Policy Effects in 80 Countries
Next Article in Special Issue
Due Diligence and Risk Alleviation in Innovative Ventures—An Alternative Investment Model from Islamic Finance
Previous Article in Journal
The Australian Stock Market’s Reaction to the First Wave of the COVID-19 Pandemic and Black Summer Bushfires: A Sectoral Analysis
Article

Impact of Audit Committee Quality on the Financial Performance of Conventional and Islamic Banks

1
Laboratory of Economic Sciences, Faculty of Economic Sciences and Management, University of Sousse, 4023 Sousse, Tunisia
2
Laboratory of Governance, Finance and Accounting, Faculty of Economic Sciences and Management, University of Sfax, 3029 Sfax, Tunisia
3
Department of Accounting and Finance, Faculty of Economic Sciences and Management, University of Monastir, 5111 Mahdia, Tunisia
*
Author to whom correspondence should be addressed.
International Academic Association of Governance~(IAAG), France.
Academic Editors: Muhammad Ishaq Bhatti, Naseem Al Rahahleh and Khaled Hussainey
J. Risk Financial Manag. 2021, 14(4), 176; https://doi.org/10.3390/jrfm14040176
Received: 25 December 2020 / Revised: 15 March 2021 / Accepted: 15 March 2021 / Published: 12 April 2021
(This article belongs to the Special Issue Islamic Finance II)
A lot of previous research studied the relationship between audit committee quality and the financial performance of conventional banks before and during the subprime crisis, whereas some other investigations analyzed the same association in the framework of Islamic banks. However, no study has compared these two correlations either before, during, or after the subprime crisis. Several reasons explain the differences, such as the audit committee quality of each bank type, the evaluation method of the financial performance, the research peculiarities, the methodology, the data, and the interpretation. This research aims to compare the impacts of the audit committees’ quality on the financial performance of Islamic and conventional banks between 2010 and 2019. The financial performance measures and audit committees’ determinants of the conventional and Islamic banks concerned 112 banks of each type. The collected data covered four continents: America, Asia, Africa, and Europe. Impacts were compared by using the Generalized Least Squares analysis. The results showed that the audit committee reduced the profitability of two bank types. Moreover, it harmed the conventional banks’ efficiency but reported an unclear effect within Islamic banks. Even so, we noticed that the audit committee had a positive impact on the conventional banks’ liquidity, while the same effect was apparently ambiguous for the Islamic banks’ liquidity. For solvency, the audit committee positively influenced conventional banks while it affected that of Islamic banks. View Full-Text
Keywords: Islamic banks (IBs); conventional banks (CBs); audit committee (AC); audit committee quality (ACQ); financial performance (FP); financial stability period; comparative study Islamic banks (IBs); conventional banks (CBs); audit committee (AC); audit committee quality (ACQ); financial performance (FP); financial stability period; comparative study
MDPI and ACS Style

Haddad, A.; El Ammari, A.; Bouri, A. Impact of Audit Committee Quality on the Financial Performance of Conventional and Islamic Banks. J. Risk Financial Manag. 2021, 14, 176. https://doi.org/10.3390/jrfm14040176

AMA Style

Haddad A, El Ammari A, Bouri A. Impact of Audit Committee Quality on the Financial Performance of Conventional and Islamic Banks. Journal of Risk and Financial Management. 2021; 14(4):176. https://doi.org/10.3390/jrfm14040176

Chicago/Turabian Style

Haddad, Achraf, Anis El Ammari, and Abdelfattah Bouri. 2021. "Impact of Audit Committee Quality on the Financial Performance of Conventional and Islamic Banks" Journal of Risk and Financial Management 14, no. 4: 176. https://doi.org/10.3390/jrfm14040176

Find Other Styles
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Back to TopTop