To read the full version of this content please select one of the options below:

The impact of board and audit committee characteristics on corporate social responsibility: evidence from the Iranian stock exchange

Shaban Mohammadi (Department of MSC. Accounting, Faculty of Shahid Rajaee, Vocational University of Khorasan, Quchan, Iran)
Hadi Saeidi (Department of Accounting, Shirvan Branch, Islamic Azad University, Shirvan, Iran)
Nader Naghshbandi (Department of Accounting, Hakim Nezami Institution of Higher Education, Quchan, Iran)

International Journal of Productivity and Performance Management

ISSN: 1741-0401

Article publication date: 18 August 2020

Abstract

Purpose

The purpose of this study is to investigate the effect of board and audit committee characteristics on corporate social responsibility (CSR) in Iranian companies listed in stock exchanges.

Design/methodology/approach

This is a descriptive-correlational and an applied research. The statistical population of this research is all companies listed in Tehran Stock Exchange and the research period is from 2012 to 2018. Using screening method a sample of 150 companies was selected. Multivariate regression and the software Eviews 10 were used for data analysis and hypothesis testing.

Findings

The results indicated that board size had a significant effect on CSR; board independence had a significant effect on CSR; managerial ownership did not have a significant effect on CSR; CEO duality did not have a significant effect on CSR; audit committee size had a significant effect on CSR; audit committee independence had a significant effect on CSR; and financial expertise of audit committee members had a significant effect on CSR.

Originality/value

The present study is the first research performed on the effect of board and audit committee characteristics on CSR in Iran. The results of this study contribute to the literature on the effect of board and audit committee characteristics on CSR and provide suggestions for capital market participants. CSR helps reduce asymmetric distribution of information among the internal and external organizational entities and reduce agency problems and conflicts among different groups. Based on the results, an effective audit committee as an effective mechanism enhances the credibility of financial and non-financial reporting such as social responsibility, which means that an effective audit committee can improve the level of voluntary disclosure of information through effective oversight of the reporting process. It is also suggested that companies focus on audit committee characteristics to increase the level of CSR.

Keywords

Acknowledgements

The paper entitled “The Impact of Board and Audit Committee Characteristics on Corporate Social Responsibility: Evidence from the Iranian Stock Exchange” confirms that all those designated as contributors to this article have participated in this scholarly activity. This paper has not been published previously in any other scientific journal and will not be submitted to another journal until the result is announced.

Citation

Mohammadi, S., Saeidi, H. and Naghshbandi, N. (2020), "The impact of board and audit committee characteristics on corporate social responsibility: evidence from the Iranian stock exchange", International Journal of Productivity and Performance Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJPPM-10-2019-0506

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited