المستخلص: |
This research aims to investigate the impact of good corporate governance mechanisms (board characteristics and audit committee characteristics) on firm performance (profitability and liquidity) using cross-sectional quantitative secondary data obtained from a sample size of 36 non-financial companies listed on the Egyptian Stock Exchange. Ordinary least squares regression (OLS), fixed effect (FE), and random effect (RE) regression analyses were used to test the hypotheses. The results of regression are demonstrated in the form of four models. Model (1) shows the effect of board characteristics on firm performance as measured by return on assets (ROA). Results show that board size and CEO duality have a positive and significant impact on a firm’s profitability, while board independence and board gender diversity have a negative and significant impact on a firm’s profitability. Model (2) shows the effect of board characteristics on firm performance as measured by the current ratio (CR). Results show that board size, board independence, board gender diversity, and CEO duality had a negative, significant impact on the firm's liquidity position. Model (3) shows the effect of audit committee characteristics on firm performance as measured by return on assets (ROA). Results show that audit committee meeting frequency and audit committee independence have a significant positive impact on a firm`s profitability, while audit committee size has a significant negative impact on firms’ profitability. Model (4) shows the effect of audit committee characteristics on firm performance as measured by the current ratio (CR). Results show that audit committee meeting frequency and audit committee independence have a significant positive effect on the firm's liquidity position, while financial leverage and firm size have a significant negative impact on the firm’s liquidity position.
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