Abstract

Audit committee as a significant part of the Corporate governance system, can lead to improved performance and firm financial reporting process. The main purpose of the current study is to investigate the relation between audit committee characteristics (financial expertise, independence, and size) and the performance of those firms enlisted in Tehran Stock Exchange. In this study, firm performance is evaluated using Tobin’s Q and ROA indexes. The research statistical population include 132 firms and the period from 2012 to 2014. The statistical population of this research consists of 132 firms from 2012 to 2014. The results of hypotheses tests, using the multiple, combined regression, indicate the fact that there has been a positive, significant relationship between audit committee financial expertise and its performance, based on Tobin’s Q and ROA indexes. Also, a positive, significant relationship was observed between audit committee independence and its performance, based on ROA index. Nonetheless, there was no significant relationship between audit committee independence and its performance, based on Tobin’s Q, and audit committee size, based on Tobin’s Q and ROA indexes.