Designing an Audit Committee Identity Model Based on Grounded Theory Data and Structural Equation Modeling

Zahra Afshar Tabrizi; Ali Akbar Farzinfar; Alireza Hasanmaleki; Mehdi Safari Grayli; Meysam Arabzadeh

Authors

Zahra Afshar Tabrizi Department of Accounting, Kas.C., Islamic Azad University, Kashan, Iran Author https://orcid.org/0009-0004-9102-6595
Ali Akbar Farzinfar Department of Accounting, Kas.C., Islamic Azad University, Kashan, Iran https://orcid.org/0000-0002-0998-4478
Alireza Hasanmaleki Department of Accounting, BG.C., Islamic Azad University, Bandar Gaz, Iran Author https://orcid.org/0000-0001-9659-9932
Mehdi Safari Grayli Department of Accounting, BG.C., Islamic Azad University, Bandar Gaz, Iran Author https://orcid.org/0000-0003-3431-7869
Meysam Arabzadeh Department of Accounting, Kas.C., Islamic Azad University, Kashan, Iran Author https://orcid.org/0000-0001-6000-7827

Keywords:

identity, audit committee, grounded theory, structural equation modeling

Abstract

The purpose of this study was to design a model of audit committee identity in the business environment. The study employed an exploratory mixed-methods approach with a developmental objective. The research process was designed and implemented in two qualitative and quantitative phases. In the qualitative phase, data were collected through semi-structured interviews with 14 experts in the research domain, including audit committee members and university faculty members. Sampling in this phase was conducted using theoretical sampling and the snowball technique and continued until theoretical saturation was reached. Subsequently, in the quantitative phase, research hypotheses were formulated based on the findings of the preceding phase, and a questionnaire was developed. Quantitative data were collected from a sample of 30 financial experts and managers who had not participated in the qualitative phase. Data analysis and hypothesis testing were performed using structural equation modeling (SEM) with Partial Least Squares (PLS) software. The qualitative findings resulted in the identification of 10 main categories, 26 subcategories, and 53 final codes within a paradigmatic model derived through three stages of coding based on grounded theory analysis. The quantitative findings further demonstrated that institutional pressures had a significant effect on audit committee identity. In addition, institutional pressures influenced the outcomes, and audit committee identity ultimately affected the implementation of structure-building strategies. The findings indicate that strengthening audit committee identity can provide an appropriate foundation for implementing strategies such as global benchmarking. Moreover, the operational independence of the committee can facilitate the implementation of annual performance evaluations.

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