Purpose This study examines the relationship between the presence of board executive committees and the incidence of corporate financial restatements among publicly listed firms in the Gulf Cooperation Council (GCC) region. While prior research has largely focused on the role of audit, risk and other board committees, the executive committee remains an emerging governance structure, especially in emerging markets, and has been relatively underexplored. Design/methodology/approach Using a sample of GCC-listed firms, this study employs multivariate regression analyses to test the impact of executive committee presence on the likelihood of financial restatements. Robustness checks are conducted through alternative model specifications, and the analysis is extended to consider the corporate lifecycle, financial distress and debt interest exposure. Findings The findings reveal strong evidence that the existence of an executive committee is significantly associated with a higher probability of financial restatements. These results remain consistent across different empirical specifications. The presence of executive committees, which are deeply involved in daily operations and strategic decision-making, may compromise financial reporting quality, particularly in contexts with evolving regulatory frameworks. Originality/value This study offers novel insights into the underexamined role of executive committees in corporate governance. It contributes to the literature by identifying a potential governance risk and provides practical implications for enhancing financial transparency and accountability in developing capital markets, particularly in the GCC region.
AlKhayari et al. (Tue,) studied this question.