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The moderating effect of political connections on the relationship between audit committee effectiveness of and organizational risk management
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Abstract: (434 Views) |
| Since the audit committee is associated with both internal and external auditors, increasing the quality of internal and external audits will increase the effectiveness of the audit committee, and as a result, the audit committee can have a significant impact on reducing company risks. The main purpose of this study is to investigate the moderating effect of political connections on the relationship between the audit committee effectiveness and organizational risk management in companies listed on the Tehran Stock Exchange. Multiple linear regression model has been used to test the research hypotheses. To measure the effectiveness of the audit committee, have been used three characteristics of the size of the audit committee, the independence of the audit committee and the financial expertise of the audit committee. The statistical population of this research, after applying some limitations in the research, includes 140 companies listed on the Tehran Stock Exchange during the period 2013 to 2019. Research evidence showed that there is a positive and significant relationship between the size of the audit committee and organizational risk management. Also, the results showed that there is a positive and significant relationship between the independence of the audit committee and organizational risk management. Findings showed that there is a positive and significant relationship between the financial expertise of the audit committee and organizational risk management. In addition, the results showed that political connections has a negative and significant effect on the relationship between the size of the audit committee and organizational risk management. Also, the findings of this study showed that political connections has a negative and significant effect on the relationship between the independence of the audit committee and organizational risk management. In addition, the results of this study show that political connections has a negative and significant effect on the relationship between the financial expertise of the audit committee and organizational risk management. These results indicate the effectiveness of the audit committee in improving the risk management of the organization, in which, political connections can reduce the effectiveness of the audit committee on organizational risk management. |
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| Keywords: Audit Committee, Organizational Risk Management, Political Connections. |
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Full-Text [PDF 565 kb]
(317 Downloads)
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Type of Study: Research |
Subject:
Auditing
Received: 2021/01/8 | Accepted: 2021/06/13 | Published: 2022/09/1
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