Abstract: Oil and Gas industry is one the mail industrial sectors in Libya, but it has some unique features associated with continuous struggles to survive based on the domestic security crisis in Libya. With these condition the possibility of financial reporting quality become questionable. However, studies in developed countries revealed that there are relations between corporate governance and audit quality in firms’ financial performance. Understanding the factors of improving firms’ performance in this important sector is important to provide an insight of how to develop this core sector. Therefore, this study is an exploration into the Libyan oil and gas companies to increase the knowledge regarding the firms’ financial performance and its antecedents. Two theories contribute to the model relation; agency theory and stewardship theory. Bothe the two theories integrated together to provide an explanation for the connection between managers, shareholders, delegation authority, and firms performance. The target population of this study includes oil and gas companies in Libya for the period from 2012 until 2019, which have 14 companies and the researcher can find and collect a reliable data from annual reports. The statistical tool is suitable for regression analysis method and particularly for this study; ordinary least squares (OLS) regression analysis is used. Results of this study show that CEO duality relation with return on assets (ROA) is not significant. However, the other three variables, boards independent, audit committee, and external audit have a significant relationship with ROA.
Keywords: Libya, Oil and Gas, Financial Performance, ROA, board independent, CEO duality, Audit Committee, external audit.
Title: Corporate Governance and Audit Management as Predictors for Return of Assets among Oil and Gas Companies in Libya
Author: Jameelah Ali Farhat Alshineeti, Aymen Faraj Musa Algabu, Tariq Salim Saed Ishmakah
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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