The Effect of Audit Committee Chair Characteristics on Intellectual Capital Performance in Banks: Evidence from an Emerging Economy
Keywords:
Audit Committee Chair, Banks, VAIC, Intellectual Capital Performance, Saudi ArabiaAbstract
The study aims to examine the impact of audit committee (AC) chair characteristics on intellectual capital performance (ICP) of banks. Accounting and corporate governance data was collected from the annual financial reports of all the listed banks in Saudi Arabia. The information of 12 banks and a total of 72 observations were collected, for the 2014 to 2019 period. The main instrument of ICP measure, which is the dependent variable, is based on the Value-Added Intellectual Coefficient (VAIC) method developed by Pulic (2000). The independent variables are corporate governance (CG) factors perceived to influence AC chair characteristics. These identified variables are activities and qualities commonly associated with the AC chair in the conduct of his duties. The results generally show that AC chair independence and AC chair DUAL have significant positive affect ICP in the context of Saudi Arabian listed banks.
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