Does internal audit matter? Audit committee, its attributes, and corporate social responsibility reporting quality
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Author(s)Oleh PaskoLink to ORCID Index: https://orcid.org/0000-0002-6275-5885
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Li ZhangLink to ORCID Index: https://orcid.org/0000-0002-4837-8630
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Nelia ProskurinaLink to ORCID Index: https://orcid.org/0000-0001-8674-1720
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Natalia RyzhikovaLink to ORCID Index: https://orcid.org/0000-0002-3019-8172
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Yelyzaveta MykhailovaLink to ORCID Index: https://orcid.org/0000-0002-1539-1548
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DOIhttp://dx.doi.org/10.21511/imfi.21(2).2024.06
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Article InfoVolume 21 2024, Issue #2, pp. 70-88
- 514 Views
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125 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
This study explores the nexus between internal audit, audit committee attributes, and Corporate Social Responsibility (CSR) disclosure quality in A-share listed companies on the Shanghai and Shenzhen stock exchanges from 2010 to 2019. Utilizing refined samples and robust datasets, this investigation reveals critical insights that a robust internal control system significantly correlates with higher-quality CSR disclosure, underscoring its pivotal role in safeguarding non-financial reporting integrity and enhancing transparency in CSR disclosures. Larger audit committees are positively associated with improved CSR disclosure quality. This highlights the strategic advantage of a diverse and expansive audit committee in navigating the complexities of CSR reporting. Contrary to expectations, the proportion of independent directors on the audit committee and the frequency of audit committee meetings do not show a significant positive relationship with CSR disclosure. Companies benefit from strategic investments in internal control systems, crucial for non-financial reporting integrity and fortified CSR disclosure practices. In conclusion, this study provides concise insights into critical factors influencing CSR disclosure quality in Chinese companies, offering actionable implications for corporate practices and regulatory frameworks.
Acknowledgment
This paper is co-funded by the European Union through the European Education and Culture Executive Agency (EACEA) within the project “EU BEST PRACTICE OF LIFE CYCLE ASSESSMENT, SOCIAL, ENVIRONMENTAL ACCOUNTING AND SUSTAINABILITY REPORTING” – 101047667-ERASMUS-JMO-2021-MODULE https://jm.snau.edu.ua/en/eu-best-practice-of-life-cycle-assessment-social-environmental-accounting-and-sustainability-reporting/
Oleh Pasko expresses sincere gratitude for the support from the Kirkland Research Program, generously provided by the Leaders of Change Foundation established by the Polish-American Freedom Foundation.
- Keywords
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JEL Classification (Paper profile tab)G34, M14, M41
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References45
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Tables9
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Figures0
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- Table 1. Sampling
- Table 2. Descriptive statistics
- Table 3. Correlations matrix
- Table 4. Regression analysis IV
- Table A1. Prior studies on the relationship between internal audit and CSR reporting quality
- Table A2. Variable definitions
- Table A3. Regression analysis I
- Table A4. Regression analysis II
- Table A5. Regression analysis III
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Inna Makarenko ,
Alex Plastun
doi: http://dx.doi.org/10.21511/afc.01(2).2017.01
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Does board composition have an impact on CSR reporting?
Patrick Velte
doi: http://dx.doi.org/10.21511/ppm.15(2).2017.02
Problems and Perspectives in Management Volume 15, 2017 Issue #2 pp. 19-35 Views: 4520 Downloads: 1725 TO CITE АНОТАЦІЯCorporate social responsibility (CSR) reporting plays a key role in management control, particularly in light of the increased demand for non-financial reporting after the financial crisis of 2008–2009. This literature review evaluates 47 empirical studies that concentrate on the influence of several board composition variables on the quantity and quality of CSR reporting. The author briefly introduces the research framework that underpins current empirical studies in this field. This is followed by a discussion of the main variables of board composition: (1) committees (audit and CSR committees), (2) board independence, (3) board expertise, (4) CEO duality, (5) board diversity (gender and foreign diversity), (6) board activity, and (7) board size. The author, then, summarizes the key findings, discusses the limitations of the existing research and offers useful recommendations for researchers, firm practice and regulators.
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Gideon Tayo Akinleye , Odunayo Olarewaju ,
Bamikole Samson Fajuyagbe
doi: http://dx.doi.org/10.21511/ppm.17(1).2019.02
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