The Effect of Audit Committee Characteristics on Financial Performance

This study examines how specific audit committee characteristics (size, age composition, and gender diversity) affect a company's financial performance as measured by Return on Equity (ROE). Data for this research was gathered from annual reports of companies (excluding banks) that were listed on the Indonesia Stock Exchange (IDX) during 2021. Statistical analysis using linear regression was conducted, with Return on Equity (ROE) as the dependent variable and the various audit committee attributes serving as independent variables. The results revealed that while audit committee size and age composition had no substantial impact on financial performance, gender diversity showed a slight influence. The study recommends that future research include additional variables and utilize more sophisticated analytical methods to enhance the validity of the findings.