Journal of Business & Economic Policy

The impact of the characteristics of the audit committees on avoiding financial failure in Jordanian Industrial Public Shareholding Companies listed in ASE (Amman Stock Exchange) – Applied study
Dr. Ibrahim Y. A. Jwaifel

Abstract
The aim of this study was to identify the impact of the characteristics of the audit committees represented by (the size of the Audit Committee, the number of independent members and the number of meetings of the Audit Committee) on avoiding financial failure in Jordanian Industrial Public Shareholding Companies listed in ASE, which has been measured by adopting the Altman model to predict financial failure. The sample of the study consists of the industrial joint stock companies listed on the Amman Stock Exchange (ASE), which are up to (67) industrial companies until the end of 2017 , Distributed among (10) industrial sectors, according to the directory of companies from the official website of the ASE. The sample of the study included (49) companies which the conditions for selecting the sample apply to. The study was based on the analytical descriptive approach, which is based on using different statistical methods to analyze the data gathered from the field of the study sample to describe the variables of the study and answer its questions and test its hypotheses. The study obtained a number of results, the most important of which was that the percentage of industrial companies which are not threatened by financial failure according to Altman model reached (71.4%), While the proportion of companies threatened with financial failure has reached (28.6%), which indicates the ability of the majority of industrial companies to avoid financial failure , The most important recommendations of the study crystallize the need for regulatory bodies through the audit committees in the companies in doing its duties by following the performance of companies regularly and to identify the problems and obstacles facing the sector and the development of solutions and effective programs to prevent companies from exiting the market as result of financial failure .

Full Text: PDF