The influence of audit committee characteristics on the ethical disclosure of sharia compliant companies
AbstractThe audit committee (AC) is an important mechanism within the corporate governance structure. Corporate misconduct and business failure have prompted greater scrutiny of the AC role. This study examines the effect of AC characteristics on disclosure, namely Islamic business conduct (IBC) dis...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2022-12-01
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| Series: | Cogent Business & Management |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2022.2115220 |
| _version_ | 1811299512867618816 |
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| author | Peni Nugraheni Syed Musa Alhabshi Romzie Rosman |
| author_facet | Peni Nugraheni Syed Musa Alhabshi Romzie Rosman |
| author_sort | Peni Nugraheni |
| collection | DOAJ |
| description | AbstractThe audit committee (AC) is an important mechanism within the corporate governance structure. Corporate misconduct and business failure have prompted greater scrutiny of the AC role. This study examines the effect of AC characteristics on disclosure, namely Islamic business conduct (IBC) disclosure, in sharia compliant companies (SCC) in Indonesia. SCC are expected to behave ethically and the AC can influence them by reviewing their internal control and stakeholder reporting systems. The study includes four AC characteristics as the independent variables, namely AC size, AC meeting frequency, AC gender diversity and AC expertise. The data were analysed using panel data regression. The samples comprised non-financial companies included in the Sharia Securities List on the Indonesia Stock Exchange for the years 2017–2020. The results show that the AC meeting variable had a positive effect on IBC disclosure. Meeting frequency can be used as a measurement of AC diligence, with the result showing that AC diligence in SCC can influence the disclosure of company ethical behaviour. The results of this study are expected to prompt Boards of Commissioners to encourage ACs to become more active in terms of undertaking more intense supervision and coordination so that the AC members can play a greater role in disclosing company information. |
| first_indexed | 2024-04-13T06:36:57Z |
| format | Article |
| id | doaj.art-dd346c85b96248aca28bdc0c5113e44c |
| institution | Directory Open Access Journal |
| issn | 2331-1975 |
| language | English |
| last_indexed | 2024-04-13T06:36:57Z |
| publishDate | 2022-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj.art-dd346c85b96248aca28bdc0c5113e44c2022-12-22T02:57:54ZengTaylor & Francis GroupCogent Business & Management2331-19752022-12-019110.1080/23311975.2022.2115220The influence of audit committee characteristics on the ethical disclosure of sharia compliant companiesPeni Nugraheni0Syed Musa Alhabshi1Romzie Rosman2Department of Accounting, Universitas Muhammadiyah Yogyakarta, Yogyakarta, IndonesiaIIUM Institute of Islamic Banking and Finance International Islamic University Malaysia, Selangor, MalaysiaIIUM Institute of Islamic Banking and Finance International Islamic University Malaysia, Selangor, MalaysiaAbstractThe audit committee (AC) is an important mechanism within the corporate governance structure. Corporate misconduct and business failure have prompted greater scrutiny of the AC role. This study examines the effect of AC characteristics on disclosure, namely Islamic business conduct (IBC) disclosure, in sharia compliant companies (SCC) in Indonesia. SCC are expected to behave ethically and the AC can influence them by reviewing their internal control and stakeholder reporting systems. The study includes four AC characteristics as the independent variables, namely AC size, AC meeting frequency, AC gender diversity and AC expertise. The data were analysed using panel data regression. The samples comprised non-financial companies included in the Sharia Securities List on the Indonesia Stock Exchange for the years 2017–2020. The results show that the AC meeting variable had a positive effect on IBC disclosure. Meeting frequency can be used as a measurement of AC diligence, with the result showing that AC diligence in SCC can influence the disclosure of company ethical behaviour. The results of this study are expected to prompt Boards of Commissioners to encourage ACs to become more active in terms of undertaking more intense supervision and coordination so that the AC members can play a greater role in disclosing company information.https://www.tandfonline.com/doi/10.1080/23311975.2022.2115220audit committeeethicsIslamic business conductsharia compliant companies |
| spellingShingle | Peni Nugraheni Syed Musa Alhabshi Romzie Rosman The influence of audit committee characteristics on the ethical disclosure of sharia compliant companies Cogent Business & Management audit committee ethics Islamic business conduct sharia compliant companies |
| title | The influence of audit committee characteristics on the ethical disclosure of sharia compliant companies |
| title_full | The influence of audit committee characteristics on the ethical disclosure of sharia compliant companies |
| title_fullStr | The influence of audit committee characteristics on the ethical disclosure of sharia compliant companies |
| title_full_unstemmed | The influence of audit committee characteristics on the ethical disclosure of sharia compliant companies |
| title_short | The influence of audit committee characteristics on the ethical disclosure of sharia compliant companies |
| title_sort | influence of audit committee characteristics on the ethical disclosure of sharia compliant companies |
| topic | audit committee ethics Islamic business conduct sharia compliant companies |
| url | https://www.tandfonline.com/doi/10.1080/23311975.2022.2115220 |
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