The Relationship Between Audit Committee Characteristics and Financial Performance of Listed Banks in Ghana

This study presented a description of the performance of eight banks listed on the Ghana stock exchange using return on equity and return on asset as performance indicators. It also presented aggregate information on the performance of these eight banks over a five-year period. It further analyzed the association between performance and audit committee size, independence, audit committee members’ expertise and experience and gender diversity of the audit committee. Audit committee size and the expertise and experience of audit committee members was found to be positively correlated with return on equity. However, the independence of the audit committee members and gender diversity of the committee had a negative correlation with return on equity. Similarly, audit committee size and the expertise and experience of audit committee members correlated positively with return on asset. However, audit committee independence and gender diversity had a negative correlation with return on asset. This means in response to the hypothesis; ROE is positively related to audit size and the audit members’ expertise and experience but negatively related to audit committee independence and gender diversity of the audit committee. Similarly, ROA is positively related to audit size and the audit members’ expertise and experience but negatively related to audit committee independence and gender diversity of the audit committee. Keywords: Audit committee, Return on Assets, Return on Equity, Financial Performance DOI: 10.7176/RJFA/11-10-03 Publication date: May 31 st 2020