AUDIT COMMITTEE CHARACTERISTICS AND FINANCIAL PROBLEMS OF LISTED COMPANIES IN THE STOCK EXCHANGE OF THAILAND
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Abstract
This research aims to study the relationship and impact of the audit committee characteristics on financial problems of listed companies in the stock exchange of Thailand. The Altman al. (1995) model was used to categorize companies according to their level of financial problems, and the audit committee characteristics consist of board size of the audit committee, number of meeting time, proportion of audit committees with financial and accounting expertise, proportion of audit committees with knowledge and expertise in information technology, proportion of female audit committees, and number of independent committees. Data were collected from the financial statements and the 56-1 reports of the 411 listed companies from 2016 to 2019. Multiple regression analysis was employed to test the research relationships and impact at 95% confidence interval. The results revealed that when using the Altman al. (1995) model comprising of the two main ratios: net working capital ratio to total assets and the profit before interest and taxes ratio, about one Third of companies listed on the stock exchange of Thailand are classified as having no financial problems. The characteristics of the audit committee that have a statistically significant impact on financial problems at the .05 level are the size of the audit committee, number of meetings, and the proportion of female audit committee. In addition, the firm size is a controlling factor that still has an influence on experiencing financial problems.
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