Audit committee features and profitability: The case of listed pharmaceutical companies in Bangladesh
List of Authors
  • Fathyah Hashim , Shamem Ara Mili

Keyword
  • Audit Committee Size, Audit Committee Independence, Return on Assets, DSE

Abstract
  • The aim of this research is to look at the effect of audit committee features on profitability of the listed pharmaceutical companies in Bangladesh. Applying purposive sampling method, the study has used a sample of 5 (five) listed pharmaceutical companies on DSE of Bangladesh to perform the empirical investigation. The data has been assembled over a period of 4 (four) years, i.e. from 2015-16 to 2018-19, as of annual reports of the sample firms. In this study, audit committee size, along with audit committee independence have been used as the features of audit committee, and return on assets as the proxy to measure the profitability of the sample companies. Adopting multiple regression analysis technique on the collected data, the study has observed that audit committee size has positive significant association with profitability, and audit committee independence has an insignificant positive association towards profitability of the sample firms. The results of the study would endow with a better understanding and additional knowledge to policy makers and other stakeholders regarding the potential of audit committee features to explain the profitability position of the listed pharmaceutical firms in Bangladesh.

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