Based on the agency theory perspective and its corporate governance problem, the current study investigated how control mechanisms affect firm financial performance with special concentrate on the role of audit committee on the enhancement of firm financial performance. The empirical findings of this study based on the listed companies in the Sultanate of Oman revealed that the control mechanisms, including committee size and board independence, positively enhance financial performance represented by ROE and therefore this leads to encourage firms to focus on such mechanisms. By contrast, audit size, board size and board independence are totally not motivated to engage with financial performance due to the insignificant link with ROA. On the other hand, a negative correlation has been found between board meeting and financial performance represented by ROE. The practical evidence of the implications by the current study found that for improvement of firm financial performance; that even though if most of the GCC governments recently have focused on corporate social responsibility because largely voluntary nature of corporate social responsibility, they should focus of the control mechanisms that suggested by the current study to play a significant role for enhancing firm financial performance.
Corporate Social Responsibility and Firm Financial Performance: The Mediating Role of Productivity
