The impact of audit committee structure and members on voluntary disclosure sections in the context of corporate governance

Abstract

Voluntary disclosure is a vital mechanism by which firms can signal their credibility and legitimacy to current and prospective stakeholders. Corporate governance structures significantly influence the extent and frequency of such disclosures. This study investigates the role of audit committees in shaping the voluntary disclosure practices of 83 firms listed on the Public Disclosure Platform from 2010 to 2020. The analysis focuses on whether the mere presence of an audit committee or its proportional characteristics impacts voluntary disclosures differently. The findings reveal that audit committees play a substantial role in enhancing voluntary disclosure levels. Furthermore, the study highlights a notable distinction between the effects of the existence of the committee and its proportional representation in corporate governance.

Keywords

• Corporate governance
• Audit committee: Voluntary Disclosure Sections
• Demographic characteristics
• Panel data analysis

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