THE INFLUENCE OF THE EFFICIENCY OF THE AUDITING COMMITTEE ON IMPROVING BANKS’ VALUE: AN EMPIRICAL STUDY ON A SAMPLE OF IRAQI PRIVATE BANKS

Abstract

The present study aims to clarify the influence of the efficiency of the auditing committee on improving banks’ value by using the locally and internationally recognized characteristics of the auditing committee, namely the number of members of the auditing committee, the number of independent members, the financial expertise of the committee, the activity of the committee, as well as the percentage of ownership of members to show the influence of the efficiency of these five characteristics on improving banks’ value. To achieve the objectives of the present study, a sample of private banks in the Iraq Stock Exchange was chosen for the years 2016 and 2017 with 56 observations. The Tobin's Q scale was chosen with appropriate measures being used to suit each of the characteristics of the committee. The characteristics are linked with the banks’ value to clarify the their influence. The SPSS program was used in the process of conducting the required statistical tests, which included the normal distribution test and simple and multiple linear regression analysis models. In general terms, the statistical results have shown that there is an influence of the efficiency of the auditing committee on improving the banks’ value. According to the results, the researchers recommend paying attention to forming committees that are based on clear and scientific foundations that are compatible with education And professional organizations for auditing in banks.