The relationship between board characteristics and audit quality on firm performance

The purpose of this study aims to identify the relationship between audit quality and board characteristics and firm performance. Past studies regarding the impact of characteristics of audit quality and board characteristics on firm performance are more focus on the mandatory obligations which are particularly need to make disclosure as declared by listing standards of Bursa Malaysia. The target population selected for this research is the listed companies in Malaysia. Secondary data of this study will be collected from annual reports published on Bursa Malaysia. The data collected is subsequently analyzed by adopting correlation and multiple regression analysis. Pearson Correlation Analysis and Multiple Linear Regression Analysis are used to analysis the collected data. With the application of agency theory, this study provides additional knowledge to future academicians and researchers that wish to study in this area. Besides, the results of this study contribute to the companies and its management in decision making. Nevertheless, the audit quality and board characteristics that influence the firm performance most efficiently are identified. Therefore, the structure of audit quality in listed companies is able to be enhanced and lead to a higher level of firm performance