The Effect on the Quality of the Audit Committee on Disclosure level of Corporate Social Responsibility

Document Type : Research Paper

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Abstract

The aim of this study is to investigate the relationship between the quality of the audit committee and the corporate social responsibility disclosure level. Social responsibility is including a set of tasks and commitments that the company needs to do for maintaining, care and assistance to the community in which it acts. It has used from Mishra and colleagues to evaluate corporate social responsibility disclosure level in this study and from the proposed variables of Personz and Rouhana and co-workers and Hysham and colleagues to assess the impact on the quality of the audit committee disclosure. The period of study is from 2011 to 2015 and the sample is consists of 67 companies listed on the Tehran Stock Exchange. It was used from ordinary least squares regression method to test research hypotheses.  The results of hypothesis testing showed there is a significant positive relationship after controlling for factors including size, ratio of book value to market value of equity and systemic risk, the audit committee independence, expertise of the members of the audit committee and the audit committee with the disclosure of corporate social responsibility; Also, there is a positive relationship between the number of members of the audit committee and the disclosure of corporate social responsibility which is not significant. According to the research findings, it is claimed to increase the quality of the audit committee, the corporate social responsibility disclosure level is increased. As a result, it is suggested that companies increase the level of social responsibility that is an important issue, pay special attention to the quality of the audit committee.

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References

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History

  • Receive Date: 26 October 2016
  • Revise Date: 11 December 2016
  • Accept Date: 19 December 2016

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