The Audit Committee and Family Business: A Systematic Literature Review | [Pakistan Journal of Life and Social Sciences • 2025]

Author(s):

1. Abdullah A. Alakkas: Department of Accountancy, College of Administrative and Financial Sciences, Saudi Electronic University,Riyadh, 11673,Saudi Arabia

Abstract:

The audit committee's role in corporate governance, extensively studied in the context of publicly listed companies, is equally significant within family businesses, a domain that has been less explored. With their unique blend of financial performance and family legacy, family businesses present distinct challenges and opportunities for governance structures, including the audit committee. Using the framework of Tranfield et al., (2003), this systematic literature review aims to fill this research gap by consolidating and analyzing existing research on the interplay between audit committees and family businesses. The focus is on their composition, effectiveness, and financial transparency and decision-making impact. By examining scholarly articles across diverse databases, the review identifies critical themes such as the influence of family ownership on audit committee independence, the challenges of addressing agency conflicts in family-controlled firms, and the role of audit committees in safeguarding stakeholder trust. The findings reveal gaps in the literature, particularly regarding the dynamics of family involvement in audit committees and their implications for corporate governance practices. This review provides valuable insights for academicians, practitioners, and policymakers seeking to enhance governance frameworks in family businesses, ultimately contributing to their sustainability and competitiveness in an increasingly complex business environment.

Page(s): 2989-3008

DOI: 10.57239/PJLSS-2025-23.1.00237

Published: Journal: Pakistan Journal of Life and Social Sciences, Volume: 23, Issue: 1, Year: 2025

Keywords:

Audit Committee Corporate Governance Family Business Systematic Literature Review

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