The impact of audit committee independence and competence on investors investment decision making: A study in the Indian context
corporate governance; ethical standards; independent directors; listing agreements
This study examined the impact of an independent and competent audit committee on the decision-making process of investors in the Indian capital market and adopted a quantitative approach in which cross-sectional data are gathered with the help of a self-administered questionnaire survey. The selection of participants involves a stratified random sample technique, specifically targeting 441 regular investors associated with nine prominent brokerage houses in the Delhi NCR engaged in equity market investments. Descriptive analysis is applied to discern respondent characteristics, whereas correlation and regression analyses are utilised to test and elucidate the relationships and influences among variables in the model. The findings of this study, which indicate a notable correlation between investors' investment decision-making in India and the independence and competence of the audit committee, are in line with the expectation that independence and competence are essential attributes that the audit committee must possess. These characteristics, in turn, have a notable influence on investors' investment decisions. The outcome of this paper fills a gap in the literature by offering insights into the vital attributes of audit committee independence and competence that notably contribute to investment decision-making in India. This research examined the impact of an independent and competent audit committee on the decision-making process of investors in the Indian capital market, which has never been examined before. Thus, the findings shed light on the influence of board independence and competence on the decision-making process of investors in the Indian capital market. 2025, Malque Publishing. All rights reserved.
Multidisciplinary Reviews;Volume;8;Issue;6;Article No.;e2025181;
https://doi.org/10.31893/multirev.2025181 https://www.scopus.com/pages/publications/85215416610?origin=resultslist
Pandey N.N., School of Business & Management, Christ University, Bengaluru, India; Kumar M., School of Business & Management, Christ University, Bengaluru, India