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Category: ICAS 2016 Proceedings
Author: Robin X, Noor Afza Amran
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Abstract

This study addresses the relationship between audit committee characteristics and family firm’s performance in Indonesia. The samples use 122 family-controlled companies which are listed in Indonesia Stock Exchange from 2010 to 2014. The findings reveal that audit committee size has a positive relationship with firm performance. The larger audit committee can help companies to monitor and ensure the transparency of financial report. Hence, the investors will feel safe when they invest their fund in the company. However, the audit committee independent has a negative relationship with firm performance. While, debt helps to overcome the financial problems when shareholders need to expand their business.

Keywords: Audit committee characteristics, family firms, firm performance, Indonesia

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