The Impact of Audit Committee Characteristics on Environmental and Social Disclosures

Abstract

The main reasons for corporate participation in environmental and social disclosure are stability, development, and continuity through participation in protecting the environment and optimizing the use of available resources. As well as the company practices and participation in society of the most important means to create a good image of the company in the community. There is a rise demand for companies to take accountability for their environmental and societal impacts. A core role of the Audit Committee (AC) is to help the board of directors in overseeing the company's reporting policy and oversees the quality of financial reporting in the company. This study examined the impact of audit committee characteristics on the level of environmental and social disclosures in listed banks in Borsa Istanbul. The results of the study showed that there is no statistically significant relationship between the characteristics of the audit committee and the environmental and social disclosures. Consequently, these characteristics have no effect on the volume or type of disclosure and their inability to predict them.

Does sharia governance influence corporate social responsibility disclosure in Indonesia Islamic banks?

“…These results indicate that non-financial disclosures, such as CSR, have not received audit committee attention yet. These results are consistent with the results of the previous studies, which revealed that the effectiveness of the audit committee had an insignificant effect on CSR disclosure (Habbash 2015;Biçer and Feneir 2019).…”

The Role of Audit Committee in Corporate Sustainability Disclosure

“…Based on the hypothesis test results in Table 5, the financial expertise of the audit committee has a significance value of -0.0001<0.05, which means that the financial expertise of the audit committee has a significant negative effect on CSR disclosure. This is in line with the results of research by Bicer & Feneir (2019) and Li et al (2012) but inconsistent with the results of the study Mohammadi (2020). Based on POJK Number 55 of 2015, the audit committee must have a minimum of 1 person with an accounting and financial background.…”

Sharia Supervisory Board, Audit Committee, and Corporate Social Responsibility Disclosure

“…But the different research indicated by (Katmon et al, 2019) audit committee size will increase the quality of CSR because the management audit committee can help in providing information on, higher quality the audit committee meeting and have no influence on CSR. While research (Bicer and Feneir, 2019) the results show that characteristic audit committee, as measured by the size and frequency of meeting them will not affect the CSR disclosure.…”