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

Gezgin, Talha; Özer, Gökhan

doi:https://dx.doi.org/10.26650/ibr.2025.54.1371473

Araştırma Makalesi

DOI :10.26650/ibr.2025.54.1371473 IUP :10.26650/ibr.2025.54.1371473 Tam Metin (PDF)

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

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.

Anahtar Kelimeler: Corporate governance, Audit committee: Voluntary Disclosure Sections, Demographic characteristics, Panel data analysis

Referanslar

Abad, C., & Bravo, F. (2018). Audit Committee Accounting Expertise and Forward-Looking Disclosures: A Study of The US Companies. Man-agement Research Review, 41(2), 166-185. https://doi.org/10.1108/MRR-02-2017-0046 google scholar
Abbott, L. J., Parker, S., Peters, G. F., & Raghunandan, K. (2003). The Association Between Audit Committee Characteristics and Audit Fees. Auditing: A Journal of Practice & Theory, 22(2), 17-32. https://doi.org/10.2308/aud.2003.22.2.17 google scholar
Agyei-Mensah, B. K. (2019). The Effect of Audit Committee Effectiveness and Audit Quality on Corporate Voluntary Disclosure Quality. African Journal of Economic and Management Studies, 10(1), 17-31. https://doi.org/10.1108/AJEMS-04-2018-0102 google scholar
Aisyah, S. N., & Rahmawati, I. P. (2022). Audıt Commıttee Characterıstıcs and Voluntary Dısclosure (Study on Manufacturıng Companıes in 2017-2019). Akumulası: Indonesian Journal of Applied Accounting And Finance, 1(1), 1-12. https://doi.org/10.20961/akumulasi.v1 i1.248 google scholar
Akhtaruddin, M., & Haron, H. (2010). Board Ownership, Audit Committees' Effectiveness and Corporate Voluntary Disclosures. Asian Review of Accounting, 18(1), 68-82. https://doi.org/10.1108/13217341011046015 google scholar
Akhtaruddin, M., Rouf, D., & Abdur, M. (2012). Corporate Governance, Cultural Factors and Voluntary Disclosure: Evidence From Selected Companies in Bangladesh. Corporate Board: Role, Duties & Composition, 8(1), 46-58. google scholar
Al Amosh, H., & Khatib, S. F. (2021). Corporate governance and voluntary disclosure of sustainability performance: The case of Jordan. SN Business & Economics, 1(12), 165. google scholar
Al Amosh, H., & Khatib, S. F. (2021). Corporate Governance and Voluntary Disclosure of Sustainability Performance: The Case of Jordan. SN Business & Economics, 1(12), 165. https://doi.org/10.1007/s43546-021-00167-1 google scholar
Al-Janadi, Y., Rahman, R. A., & Omar, N. H. (2013). Corporate Governance Mechanisms and Voluntary Disclosure in Saudi Arabia. Research Journal of Finance and Accounting, 4(4), 25-36. google scholar
Alyousef, L., & Alsughayer, S. (2021). The relationship between corporate governance and voluntary disclosure: The role of boards of directors and audit committees. Universal Journal of Accounting and Finance, 9(4), 678-692. google scholar
Appuhami, R., & Tashakor, S. (2017). The Impact of Audit Committee Characteristics on CSR Disclosure: An Analysis of Australian Firms. Australian Accounting Review, 27(4), 400-420. https://doi.org/10.1111/auar.12170 google scholar
Arcay, M. R. B., & Vâzquez, M. F. M. (2005). Corporate Characteristics, Governance Rules and The Extent of Voluntary Disclosure in Spain. Advances in Accounting, 21, 299-331. https://doi.org/10.1016/S0882-6110(05)21013-1 google scholar
Association of Certified Fraud Examiners,(2018), ‘‘Report to the Nations on Occupational Fraud and Abuse’’ google scholar
Barako, D.G. (2007). Determinants of Voluntary Disclosures in Kenyan Companies Annual Reports. African Journal of Business Manage-ment, 1(5),113-128. google scholar
Barros, C. P., Boubaker, S., & Hamrouni, A. (2013). Corporate governance and voluntary disclosure in France. Journal of Applied Business Research (JABR), 29(2), 561-578. google scholar
Boateng, R. N., Tawiah, V., & Tackie, G. (2022). Corporate Governance and Voluntary Disclosures in Annual Reports: A Post-International Financial Reporting Standard Adoption Evidence From An Emerging Capital Market. International Journal of Accounting & Infor-mation Management, 30(2), 252-276. https://doi.org/10.1108/IJAIM-10-2021-0220 google scholar
Bolton, P., & Kacperczyk, M. T. (2021). Carbon disclosure and the cost of capital. Available at SSRN 3755613. google scholar
Botosan, C. A. (1997). Disclosure Level and The Cost of Equity Capital. Accounting Review, 72(3), 323-349. google scholar
Bravo, F., & Alcaide-Ruiz, M. D. (2019). The Disclosure of Financial Forward-Looking İnformation: Does The Financial Expertise of Female Directors Make A Difference?. Gender in Management: An International Journal, 34(2), 140-156. https://doi.org/10.1108/GM-09-2018-0120 google scholar
Bronson, S. N., Carcello, J. V., & Raghunandan, K. (2006). Firm Characteristics and Voluntary Management Reports on Internal Control. Auditing: A Journal of Practice & Theory, 25(2), 25-39. https://doi.org/10.2308/aud.2006.25.2.25 google scholar
Cooke, T. E., & Wallace, R. O. (1990). Financial Disclosure Regulation and Its Environment: A Review and Further Analysis. Journal of Accounting and Public Policy, 9(2), 79-110. https://doi.org/10.1016/0278-4254(90)90013-P google scholar
Davis, G. F. (2005). New Directions in Corporate Governance. Annual Review of Sociology, 31, 143-162. https://doi.org/10.1146/annurev. soc.31.041304.122249 google scholar
DeZoort, F. T., Hermanson, D. R., Archambeault, D. S., & Reed, S. A. (2002). Audit Committee Effectiveness: A Synthesis of the Empirical Audit Committee Literature, Journal of Accounting Literature, Vol. 21. pp. 38-75. google scholar
Diamond, D. W., & Verrecchia, R. E. (1991). Disclosure, Liquidity, and The Cost of Capital. The Journal of Finance, 46(4), 1325-1359. https:// doi.org/10.1111/j.1540-6261.1991.tb04620.x google scholar
Dzaraly, M., Lokman, N., & Othman, S. (2018). Corporate Governance Mechanisms and Voluntary Disclosure of Strategic and Forward Looking Information in Annual Reports. International Journal of Accounting Finance and Business, 3(15), 86-104. google scholar
El-Deeb, M. S., Halim, Y. T., & Elbayoumi, A. F. (2021). Disclosure tone, corporate governance and firm value: evidence from Egypt. Asia-Pacific Journal of Accounting & Economics, 1-22. google scholar
Enache, L., & Hussainey, K. (2020). The Substitutive Relation Between Voluntary Disclosure and Corporate Governance in Their Effects on Firm Performance. Review of Quantitative Finance and Accounting, 54, 413-445. https://doi.org/10.1007/s11156-019-00794-8 google scholar
Francis, J. R., Khurana, I. K., & Pereira, R. (2005). Disclosure Incentives and Effects on Cost of Capital Around The World. The Accounting Review, 80(4), 1125-1162. https://doi.org/10.2308/accr.2005.80.4.1125 google scholar
Francis, J., Nanda, D., & Olsson, P. (2008). Voluntary disclosure, earnings quality, and cost of capital. Journal of Accounting Research, 46(1), 53-99. google scholar
Frenkel, S., Guttman, I., & Kremer, I. (2020). The effect of exogenous information on voluntary disclosure and market quality. Journal of Financial Economics, 138(1), 176-192. google scholar
Hafsi, T., & Turgut, G. (2013). Boardroom Diversity and Its Effect on Social Performance: Conceptualization and Empirical Evidence. Journal of Business Ethics, 112, 463-479. https://doi.org/10.1007/s10551-012-1272-z google scholar
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2014). Multivariate Data Analysis, Pearson New International Edition, Seventh Edition. Pearson Education Limited Harlow, Essex. google scholar
Hamrouni, A., Miloudi, A., & Benkraiem, R. (2015). Signaling Firm Performance Through Corporate Voluntary Disclosure. Journal of Applied Business Research (JABR), 31(2), 609-620. https://doi.org/10.19030/jabr.v31i2.9157 google scholar
He, J., Plumlee, M. A., & Wen, H. (2019). Voluntary disclosure, mandatory disclosure and the cost of capital. Journal of Business Finance & Accounting, 46(3-4), 307-335. google scholar
Healy, P. M., & Palepu, K. G. (2001). Information Asymmetry, Corporate Disclosure, and The Capital Markets: A Review of The Empirical Disclosure Literature. Journal of Accounting and Economics, 31(1-3), 405-440. https://doi.org/10.1016/S0165-4101(01)00018-0 google scholar
Healy, P. M., Hutton, A. P., & Palepu, K. G. (1999). Stock Performance and Intermediation Changes Surrounding Sustained Increases in Disclosure. Contemporary Accounting Research, 16(3), 485-520. https://doi.org/10.1111/j.1911-3846.1999.tb00592.x google scholar
Ho, S. S., & Wong, K. S. (2001). A study of the relationship between corporate governance structures and the extent of voluntary disclosure. Journal of International Accounting, Auditing and Taxation, 10(2), 139-156. google scholar
Hoechle, D. (2007). Robust Standard Errors for Panel Regressions with Cross-Sectional Dependence. The Stata Journal, 7(3), 281-312. google scholar
Ji, X. D., Lu, W., & Qu, W. (2015). Determinants and Economic Consequences of Voluntary Disclosure of Internal Control Weaknesses in China. Journal of Contemporary Accounting & Economics, 11(1), 1-17. https://doi.org/10.1016/j.jcae.2014.12.001 google scholar
John, K., & Senbet, L. W. (1998). Corporate Governance and Board Effectiveness. Journal of Banking & Finance, 22(4), 371-403. https:// doi.org/10.1016/S0378-4266(98)00005-3 google scholar
Johnson, S. G., Schnatterly, K., & Hill, A. D. (2013). Board Composition Beyond Independence: Social Capital, Human Capital, and Demographics. Journal of Management, 39(1), 232-262. https://doi.org/10.1177/0149206312463938 google scholar
Jullobol, N., & Sartmool, S. (2015). The Effect of Firm Performance on Voluntary Disclosure in Annual Reports: A Case Study of Technology Industry in The Stock Exchange of Thailand. RMUTT Global Business and Economics Review, 10(2), 115-128. https://so03.tci-thaijo. org/index.php/RMUTT-Gber/article/view/242005. google scholar
Kang, H., Cheng, M., & Gray, S. J. (2007). Corporate Governance and Board Composition: Diversity and Independence of Australian Boards. Corporate Governance: An International Review, 15(2), 194-207. https://doi.org/10.1111/j.1467-8683.2007.00554.x google scholar
Kelton, A. S., & Yang, Y. W. (2008). The Impact of Corporate Governance on Internet Financial Reporting. Journal of Accounting and Public Policy, 27(1), 62-87. https://doi.org/10.1016/j.jaccpubpol.2007.11.001 google scholar
Kurulu, S. P. (2020). Kurumsal yönetim ilkeleri. Ankara: Sermaye Piyasası Kurulu Yayınları. google scholar
Laksmana, I. (2008). Corporate Board Governance and Voluntary Disclosure of Executive Compensation Practices. Contemporary Accounting Research, 25(4), 1147-1182. https://doi.org/10.1506/car.25.4.8 google scholar
Lewis, B. W., Walls, J. L., & Dowell, G. W. (2014). Difference in Degrees: CEO Characteristics and Firm Environmental Disclosure. Strategic Management Journal, 35(5), 712-722. https://doi.org/10.1002/smj.2127 google scholar
Li, J., Mangena, M., & Pike, R. (2012). The Effect of Audit Committee Characteristics on Intellectual Capital Disclosure. The British Accounting Review, 44(2), 98-110. https://doi.org/10.1016/j.bar.2012.03.003 google scholar
Ma, Z., Zhang, H., Zhong, W., & Zhou, K. (2020). Top Management Teams’ Academic Experience and Firms’ Corporate Social Responsibility Voluntary Disclosure. Management and Organization Review, 16(2), 293-333. https://doi.org/10.1017/mor.2019.58 google scholar
Madi, H. K., Ishak, Z., & Manaf, N. A. A. (2014). The İmpact of Audit Committee Characteristics on Corporate Voluntary Disclosure. Procedia-Social and Behavioral Sciences, 164, 486-492. https://doi.org/10.1016/j.sbspro.2014.11.106 google scholar
Mangena, M., & Tauringana, V. (2007). Corporate Compliance with Non-Mandatory Statements of Best Practice: The Case of The ASB Statement on Interim Reports. European Accounting Review, 16(2), 399-427. https://doi.org/10.1080/09638180701391014 google scholar
Md Zaini, S., Samkin, G., Sharma, U., & Davey, H. (2018). Voluntary Disclosure in Emerging Countries: A Literature Review. Journal of Accounting in Emerging Economies, 8(1), 29-65. https://doi.org/10.1108/JAEE-08-2016-0069 google scholar
Meek, G. K., Roberts, C. B., & Gray, S. J. (1995). Factors Influencing Voluntary Annual Report Disclosures by US, UK and Continental European Multinational Corporations. Journal of International Business Studies, 26, 555-572. https://doi.org/10.1057/palgrave.jibs. 8490186 google scholar
Mukti, A. H. (2018). Is Voluntary Disclosure and Audit Committee Characteristic Linked to Earning Informativeness?. Is Voluntary Disclo-sure and Audit Committee Characteristic Linked to Earning Informativeness?, International Journal of Management and Economics Invention, 4(05), 1778-1784. http://repository.ubharajaya.ac.id/id/eprint/3553 google scholar
Munther, A. N. (2019). Effect of Corporate Governance Rules on Voluntary Disclosure in Jordanian Corporations Listed With The Amman Stock Exchange (ASE):(An Empirical Study). Studies in Business and Economics, 14(1), 154-168. https://doi.org/10.2478/sbe-2019-0012 google scholar
Muttakin, M. B., Khan, A., & Subramaniam, N. (2015). Firm Characteristics, Board Diversity and Corporate Social Responsibility: Evidence From Bangladesh. Pacific Accounting Review, 27(3), 353-372. https://doi.org/10.1108/PAR-01-2013-0007 google scholar
O’Sullivan, M., Percy, M., & Stewart, J. (2008). Australian Evidence on Corporate Governance Attributes and Their Association with Forward-Looking Information in The Annual Report. Journal of Management & Governance, 12, 5-35. https://doi.org/10.1007/s 10997-007-9039-0 google scholar
Oradi, J., & Izadi, J. (2020). Audit Committee Gender Diversity and Financial Reporting: Evidence From Restatements. Managerial Auditing Journal, 35(1), 67-92. https://doi.org/10.1108/MAJ-10-2018-2048 google scholar
O'Shaughnessy, D., Sahyoun, N., & Tervo, W. (2022). Audit committee voluntary disclosure describing external auditor oversight: Does it reflect higher audit quality?. Journal of Corporate Accounting & Finance, 33(4), 22-38. google scholar
Oxelheim, L., & Rand0y, T. (2003). The İmpact of Foreign Board Membership on Firm Value. Journal of Banking & Finance, 27(12), 2369-2392. https://doi.org/10.1016/S0378-4266(02)00395-3 google scholar
Patelli, L., & Prencipe, A. (2007). The Relationship Between Voluntary Disclosure and Independent Directors in The Presence of A Dominant Shareholder. European Accounting Review, 16(1), 5-33. https://doi.org/10.1080/09638180701265820 google scholar
Persons, O. S. (2009). Audit Committee Characteristics and Earlier Voluntary Ethics Disclosure Among Fraud and No-Fraud Firms. Inter-national Journal of Disclosure and Governance, 6, 284-297. https://doi.org/10.1057/jdg.2008.29 google scholar
Reidenbach, M. R. (2024). Audit committee chair monitoring incentives to use voluntary disclosure in the audit committee report under high agency conflicts. Journal of Accounting, Auditing & Finance, 39(4), 1008-1043. google scholar
Rhodes, S. R. (1983). Age-Related Differences in Work Attitudes and Behavior: A Review and Conceptual Analysis. Psychological Bulletin, 93(2), 328-367. https://doi.org/10.1037/0033-2909.93.2.328 google scholar
Rogers, W. (1993). Regression Standard Errors in Clustered Samples. Stata Technical Bulletin, 13, 19-23. google scholar
Rouf, M. A., & Akhtaruddin, M. (2018). Factors Affecting The Voluntary Disclosure: A Study by Using Smart PLS-SEM Approach. International Journal of Law and Management, 60(6),1498-1508. https://doi.org/10.1108/IJLMA-01-2018-0011 google scholar
Saha, R., & Kabra, K. C. (2020). Corporate governance and voluntary disclosure: A synthesis of empirical studies. Business Perspectives and Research, 8(2), 117-138. google scholar
Saha, R., & Kabra, K. C. (2022). Corporate governance and voluntary disclosure: Evidence from India. Journal of Financial Reporting and Accounting, 20(1), 127-160. google scholar
Samaha, K., Khlif, H., & Hussainey, K. (2015). The Impact of Board and Audit Committee Characteristics on Voluntary Disclosure: A Meta-Analysis. Journal of International Accounting, Auditing and Taxation, 24, 13-28. https://doi.org/10.1016/j.intaccaudtax.2014.11.001 google scholar
Sambharya, R. B. (1996). Foreign Experience of Top Management Teams and International Diversification Strategies of US Multina-tional Corporations. Strategic Management Journal, 17(9), 739-746. https://doi.org/10.1002/(SICI)1097-0266(199611)17:9<739::AID-SMJ846>3.0.CO;2-K google scholar
Scaltrito, D. (2016). Voluntary Disclosure in Italy: Firm-Specific Determinants an Empirical Analysis of Italian Listed Companies. EuroMed Journal of Business, 11(2), 272-303. https://doi.org/10.1108/EMJB-07-2015-0032 google scholar
SetianY, E., Hartoko, S., Suhardjanto, D., & Honggowati, S. (2017). Audit Committee Characteristics and Voluntary Financial DiscLosure. Re-view of Integrative Business and Economics Research, 6(3), 239. google scholar
Shehata, N. F. (2014). Theories and Determinants of VoluntarY Disclosure. Accounting and Finance Research (AFR), 3(1), 18-26. google scholar
Srinidhi, B. I. N., Gul, F. A., & Tsui, J. (2011). Female Directors and Earnings EualitY. Contemporary Accounting Research, 28(5), 1610-1644. https://doi.org/10.1111/j.1911-3846.2011.01071.x google scholar
Sweiti, I. M. (2017). On The Influence of The Board’s Financial Education on Voluntary Disclosure: Evidence From Saudi Arabia. Interna-tional Journal of Advanced and Applied Sciences, 4(2), 128-133. https://doi.org/10.21833/ijaas.2017.02.021 google scholar
Tsang, A., Xie, F., & Xin, X. (2019). Foreign institutional investors and corporate voluntary disclosure around the world. The Accounting Review, 94(5), 319-348. google scholar
Ud Din, N., Cheng, X., Ahmad, B., Sheikh, M. F., Adedigba, O. G., Zhao, Y., & Nazneen, S. (2021). Gender Diversity in The Audit Committee and The Efficiency of Internal Control and Financial Reporting Quality. Economic Research-Ehonomsha istrazivanja, 34(i), 1170-1189. https://doi.org/10.1080/1331677X.2020.1820357 google scholar
Umaru, H. O., Bunmi, O., Ozovehe, U. U., & Shalli, A. M. (2021). Do auditor firm size and financial expertise of audit committee affect voluntary disclosure of Nigerian banks?. Journal of Accounting Research, Organization and Economics, 4(1), 92-103. google scholar
Verrecchia, R. E. (1983). Discretionary Disclosure. Journal of Accounting and Economics, 5, 179-194. https://doi.org/10.1016/0165-4101(83) 90011-3 google scholar

Atıflar

Biçimlendirilmiş bir atıfı kopyalayıp yapıştırın veya seçtiğiniz biçimde dışa aktarmak için seçeneklerden birini kullanın

DIŞA AKTAR

APA

Gezgin, T., & Özer, G. (2025). The impact of audit committee structure and members on voluntary disclosure sections in the context of corporate governance. Istanbul Business Research, 54(1), 1-22. https://doi.org/10.26650/ibr.2025.54.1371473

AMA

Gezgin T, Özer G. The impact of audit committee structure and members on voluntary disclosure sections in the context of corporate governance. Istanbul Business Research. 2025;54(1):1-22. https://doi.org/10.26650/ibr.2025.54.1371473

ABNT

Gezgin, T.; Özer, G. The impact of audit committee structure and members on voluntary disclosure sections in the context of corporate governance. Istanbul Business Research, [Publisher Location], v. 54, n. 1, p. 1-22, 2025.

Chicago: Author-Date Style

Gezgin, Talha, and Gökhan Özer. 2025. “The impact of audit committee structure and members on voluntary disclosure sections in the context of corporate governance.” Istanbul Business Research 54, no. 1: 1-22. https://doi.org/10.26650/ibr.2025.54.1371473

Chicago: Humanities Style

Gezgin, Talha, and Gökhan Özer. “The impact of audit committee structure and members on voluntary disclosure sections in the context of corporate governance.” Istanbul Business Research 54, no. 1 (Jun. 2025): 1-22. https://doi.org/10.26650/ibr.2025.54.1371473

Harvard: Australian Style

Gezgin, T & Özer, G 2025, 'The impact of audit committee structure and members on voluntary disclosure sections in the context of corporate governance', Istanbul Business Research, vol. 54, no. 1, pp. 1-22, viewed 26 Jun. 2025, https://doi.org/10.26650/ibr.2025.54.1371473

Harvard: Author-Date Style

Gezgin, T. and Özer, G. (2025) ‘The impact of audit committee structure and members on voluntary disclosure sections in the context of corporate governance’, Istanbul Business Research, 54(1), pp. 1-22. https://doi.org/10.26650/ibr.2025.54.1371473 (26 Jun. 2025).

MLA

Gezgin, Talha, and Gökhan Özer. “The impact of audit committee structure and members on voluntary disclosure sections in the context of corporate governance.” Istanbul Business Research, vol. 54, no. 1, 2025, pp. 1-22. [Database Container], https://doi.org/10.26650/ibr.2025.54.1371473

Vancouver

Gezgin T, Özer G. The impact of audit committee structure and members on voluntary disclosure sections in the context of corporate governance. Istanbul Business Research [Internet]. 26 Jun. 2025 [cited 26 Jun. 2025];54(1):1-22. Available from: https://doi.org/10.26650/ibr.2025.54.1371473 doi: 10.26650/ibr.2025.54.1371473

ISNAD

Gezgin, Talha - Özer, Gökhan. “The impact of audit committee structure and members on voluntary disclosure sections in the context of corporate governance”. Istanbul Business Research 54/1 (Jun. 2025): 1-22. https://doi.org/10.26650/ibr.2025.54.1371473

Cilt 54, Sayı 12025, S. 1-22

ZAMAN ÇİZELGESİ

Gönderim	04.10.2023
Kabul	23.01.2025
Çevrimiçi Yayınlanma	15.05.2025

LİSANS

Attribution-NonCommercial (CC BY-NC)

This license lets others remix, tweak, and build upon your work non-commercially, and although their new works must also acknowledge you and be non-commercial, they don’t have to license their derivative works on the same terms.

Istanbul Business Research