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Audit committee characteristics and corporate philanthropic donations before and during COVID-19

Umar Habibu Umar (Department of Accounting, Yusuf Maitama Sule University, Kano, Nigeria)
Abubakar Isa Jibril (Office of the Accountant General of the Federation, Abuja, Nigeria)
Sulaiman Musa (Department of Accountancy, Kano State Polytechnic, Kano, Nigeria)

Corporate Governance

ISSN: 1472-0701

Article publication date: 8 September 2022

Issue publication date: 15 February 2023

483

Abstract

Purpose

This study aims to examine the effects of audit committee attributes on corporate philanthropic donations before and during the COVID-19 pandemic.

Design/methodology/approach

The study targets Nigeria’s listed firms between 2019 and 2020. We hand-collected the data from the available published annual reports of 141 and 128 firms for 2019 and 2020, respectively. Therefore, the authors used a total of 269 firm-year observations for the study. The authors used ordinary least square regression to analyze the data and Tobit regression to establish the robustness of the results.

Findings

The results indicate that the frequency of audit committee meetings has a significant positive relationship with corporate philanthropic donations before and during COVID-19. In the case of audit committee independence, it has only a significant positive relationship with corporate philanthropic donations during the pandemic. However, the findings reveal that audit committee size and foreign directors on the audit committee do not influence corporate philanthropic donations before and during COVID-19.

Research limitations/implications

The study considers audit committee characteristics out of the corporate governance mechanisms that can influence the philanthropic donations of the listed firms in Nigeria over two years from 2019 and 2020.

Practical implications

The findings have practical implications for encouraging the audit committee to support philanthropic donations for the welfare of the poor and the needy, particularly in difficult times like the COVID-19 period. The results could also help regulators and policymakers to provide regulations and policies that can encourage firms to participate actively in philanthropic activities to their best ability.

Social implications

Motivating firms to provide philanthropic donations for the welfare of underprivileged persons could strongly support the government’s effort to minimize the socioeconomic problems caused by COVID-19.

Originality/value

The study contributes to the scant literature that establishes the impact of audit committee attributes on firm philanthropic donations toward helping the poor and the needy in difficult periods.

Keywords

Citation

Umar, U.H., Jibril, A.I. and Musa, S. (2023), "Audit committee characteristics and corporate philanthropic donations before and during COVID-19", Corporate Governance, Vol. 23 No. 2, pp. 347-366. https://doi.org/10.1108/CG-10-2021-0387

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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