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.