The relationship between audit committee characteristics and corporate value creation: Evidence from Moroccan listed companies

Abstract

Type of the article: Research ArticleCorporate governance mechanisms have progressively played a crucial role in value creation, particularly in emerging markets where there is information asymmetry and agency issues. They have been considered strategic levers for enhancing the value creation of firms. Of these mechanisms, the audit committee is identified as a crucial asset for facilitating good corporate governance in firms. This study examines how the characteristics of the audit committee influence value creation in Moroccan public firms. panel data for 44 Casablanca Stock Exchange listed companies between 2022 and 2024, we use static panel regression models to investigate the relationship between audit committee attributes and two value creation proxies: market value added (MVA) and return on equity (ROE). The results show that independence, skill, size, and frequency of audit committee meetings all play significant roles in greater value creation. Particularly, independence has the most significant positive effect on MVA and ROE. The expertise of the committee has a positive effect on MVA, while its size has a positive effect on both indicators. Meeting frequency significantly improves ROE but makes no difference to MVA. These results suggest that effective audit committees are excellent governance mechanisms capable of reducing information asymmetries, enhancing the quality of financial reporting, and thereby building shareholder value in the Moroccan context.