Contribution of Audit Committee Characteristics to the Corporate Governance Practices of Regulatory Authorities in Tanzania: Mediating Role of Audit Committee Effectiveness

This study examines the contribution of audit committee characteristics to the corporate govern-ance practices of regulatory authorities in Tanzania; focusing on the mediating role of audit committee effectiveness. The research aims to explore how audit committee characteristics such as independence, financial expertise, size, and frequency of meetings, influence corporate gov-ernance practices, and whether audit committee effectiveness mediates this relationship. A quan-titative research approach was used, with data collected through an online structured survey questionnaire from board members, management, accountants, and auditors of regulatory au-thorities.Out of 300 questionnaires sent, 241 were collected, yielding a high response rate of 80,3%, ensuring robust data for analysis, conducted using Jamovi software. The results show that audit committee characteristics significantly enhance corporate governance practices, improving financial reporting, accountability, and oversight roles ofaudit committees. Independence, financial expertise, and a diverse mix of skills are essential to strengthen governance and reduce conflicts of interest. In addition, the study finds that audit committee effective-ness partially mediates the relationship between audit committee characteristics and corporate governance practices, implyingthat effective audit committees translate structural characteristics into improved governance outcomes. The theoretical and managerial implications highlight the importance of audit committee structure and operational effectiveness in promoting corporate governance practices. These findings suggest that regulatory authoritiesin Tanzania should pri-oritize selecting audit committee members based on financial expertise, and member independ-ence. The study recommends that Tanzanian policymakers revise audit committee guidelines and consider the introduction and implementation of the national corporate governance code to standardize corporategovernance practices across the sectors. Future research could extend this study to other regions and industries, to examine additional audit committee characteristics, and use a longitudinal approach to gain deeper insights into governance improvements over time.