Do the attributes of audit committee explain non-performing loans? evidence from an emerging economy / Arifa Akter … [et al.]

Akter, Arifa and Hossain, Mohammad Kamal and Alam, Mohammad Jahangir and Islam, Md. Shajul (2021) Do the attributes of audit committee explain non-performing loans? evidence from an emerging economy / Arifa Akter … [et al.]. Asia-Pacific Management Accounting Journal (APMAJ), 16 (3): 31. pp. 327-357. ISSN 2550-1631

Abstract

This study examined whether various attributes of the audit committee of listed banks in Bangladesh explain the level of non-performing loans (NPLs). This study used a panel data set comprising all 30 listed banks with 250 bank-year observations for the period 2013–2017. It employed the random-effects GLS regression model with cluster robust standard error and AR (1) disturbance to examine the effect of several audit committee attributes on NPLs. We found that holding audit committee meetings frequently and a higher number of independent members in the audit committee facilitate to reduce NPLs. We, however, find no explicit evidence that the other attributes of the audit committee examined (audit committee size, financial experience and financial literacy of the audit committee members, professional qualifications of the audit committee Chairman) contribute in reducing NPLs. The findings will be useful for policymakers of the banking sector in Bangladesh and the relevant regulatory bodies in enabling them to understand the role of the various attributes of the audit committee in the incidence of NPLs.

Metadata

Item Type: Article
Creators:
Creators
Email / ID Num.
Akter, Arifa
UNSPECIFIED
Hossain, Mohammad Kamal
karunu2003@yahoo.com
Alam, Mohammad Jahangir
UNSPECIFIED
Islam, Md. Shajul
UNSPECIFIED
Subjects: H Social Sciences > HB Economic Theory. Demography
H Social Sciences > HB Economic Theory. Demography > Relation to philosophy, religion, ethics
Divisions: Universiti Teknologi MARA, Shah Alam > Accounting Research Institute (ARI)
Journal or Publication Title: Asia-Pacific Management Accounting Journal (APMAJ)
UiTM Journal Collections: UiTM Journal > Asia-Pacific Management Accounting Journal (APMAJ)
ISSN: 2550-1631
Volume: 16
Number: 3
Page Range: pp. 327-357
Keywords: attributes, audit committee, non-performing loans (NPLs)
Date: December 2021
URI: https://ir.uitm.edu.my/id/eprint/56537
Edit Item
Edit Item

Download

[thumbnail of 56537.pdf] Text
56537.pdf

Download (655kB)

ID Number

56537

Indexing

Statistic

Statistic details