Audit Committee Features and CSR Disclosure: Additional Evidence From an Emerging Market

Abstract

This study aims to measure the level of corporate social responsibility disclosure (CSRDL) in an emerging market, Jordan. It also aims to investigate the effect of audit committee (AC) features on CSRDL. The study’s data, obtained from annual reports, comprises 576 company-year observations from industrial and services companies listed on the Amman stock exchange for the period 2011 to 2016. Content analysis is used to measure CSRDL, and multiple regression techniques to test the proposed relationships. The results show that CSRDL among Jordanian listed companies is low, suggesting that companies have less incentive to disclose CSR practices. Additionally, AC independence and AC ownership positively influence CSRDL. The findings from this research have limited generalisability due to the specific characteristics of the sample, which is from a developing country. However, they have implications and value for policymakers and different stakeholders interested in improving CSR initiatives. The findings are also significant in reducing agency costs and enhancing corporate transparency. Within the limits of the authors’ knowledge, this research is among the first to provide preliminary evidence on the effect of AC features on CSR disclosure in an emerging market context, specifically in Jordan.