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Designing and prioritizing the dimensions of audit committee structure affecting bank stability using a hybrid best-worst method (BWM) and fuzzy TOPSIS approach
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S. M. Fazelian   |
| Department of Accounting, QaS.C., Islamic Azad University, Qaemshahr, Iran |
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Abstract: (5 Views) |
This study aims to design and prioritize the dimensions of audit committee structure affecting bank stability using a hybrid Best-Worst Method (BWM) and Fuzzy TOPSIS approach in banks listed on the Tehran Stock Exchange. This research is applied in terms of purpose and falls under multi-criteria decision-making (MCDM) studies in terms of nature. The statistical population consists of 10 banks listed on the Tehran Stock Exchange, and the opinions of 7 experts including university professors, audit committee members of banks, and independent auditors were used for weighting the indicators. Five main indicators of audit committee structure including size, independence, financial expertise, gender, and number of meetings were identified based on theoretical foundations and literature review. In the first stage, the weight of each indicator was calculated using the fuzzy best-worst method. The weighting results showed that the independence of audit committee members with a weight of 0.315 has the highest importance among the indicators of audit committee structure affecting bank stability, and the indicators of size (0.260), financial expertise (0.215), number of meetings (0.150), and gender (0.060) were ranked next, respectively. The calculated consistency ratio was 0.048, which is less than 0.1, indicating acceptable consistency of the experts’ judgments. In the second stage, the sample banks were ranked using the Fuzzy TOPSIS method based on the obtained weights. The ranking results showed that Karafarin Bank with a closeness coefficient of 0.679 ranks first, Pasargad Bank with 0.611 ranks second, Eghtesad Novin Bank with 0.538 ranks third, and Mellat Bank with 0.535 ranks fourth. At the bottom of the ranking, Bank Saderat Iran with a closeness coefficient of 0.252 ranks tenth. The sensitivity analysis results with changes in indicator weights within a ±20% range showed that the ranking obtained from the Fuzzy TOPSIS method has acceptable robustness and stability, and changes in indicator weights do not have a significant impact on the final results. These findings have important implications for policymakers, banking supervisors, and bank managers, demonstrating that establishing audit committees with high independence, appropriate size, sufficient financial expertise, and regular meetings can serve as an effective strategy for increasing the stability of the country's banking system. Furthermore, the hybrid BWM and Fuzzy TOPSIS approach, as an efficient decision-making tool, can help banks and regulatory institutions in continuously evaluating and improving the audit committee structure.
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| Keywords: Audit Committee, Bank Stability, Best-Worst Method (BWM), Fuzzy TOPSIS, Multi-Criteria Decision Making. |
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Full-Text [PDF 338 kb]
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Type of Study: Research |
Subject:
Special
Received: 2026/05/2 | Accepted: 2026/06/15 | Published: 2026/07/10
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