Audit and CSR committees: are they complements or substitutes in CSR reporting, assurance and GRI framework adoption?

Authors: Uyar, A., Elbardan, H., Kuzey, C. and Karaman, A.S.

Journal: International Journal of Accounting and Information Management

Volume: 31

Issue: 1

Pages: 1-36

eISSN: 1758-9037

ISSN: 1834-7649

DOI: 10.1108/IJAIM-04-2022-0086

Abstract:

Purpose: This study aims mainly to test the effect of audit committee independence and expertise attributes on corporate social responsibility (CSR) reporting, assurance and global reporting initiative (GRI) framework adoption and to investigate how CSR committee existence moderates this main relationship. Design/methodology/approach: The study uses a large global sample that includes all (59,172) firm-year observations having CSR-related data in the Thomson Reuters Eikon database for a period between 2002 and 2019. The empirical analyses are based on random-effects logistic panel regression and Hayes methodology for the moderation analysis. Findings: The study finds that audit committee independence and expertise are significantly associated with CSR reporting, CSR report assurance and GRI framework adoption. Moderation analysis largely supports the existence of a substitution role between audit and CSR committees and implies that audit committees are significant predictors of CSR reporting, assurance and GRI framework adoption mostly in the absence of the CSR committee. Practical implications: The findings propose audit committee members be extra-vigilant in CSR reporting and assurance practices arising from undertaking substitution roles with the CSR committee. Hence, firms may configure their corporate structure in line with the results such as augmenting the audit committee with independent and expert members if they do not constitute a CSR committee. If firms establish a CSR committee, audit committee members may allocate less time to CSR reporting and assurance and more time to financial reporting quality. Originality/value: This is the first study, to the best of the authors’ knowledge, to investigate the direct and indirect effect of audit committees’ attributes not only on CSR disclosure but also on GRI implementation and CSR reporting external assurance, considering the CSR committee’s possible substitutability or complementarity moderating role. This research develops a deeper understanding of audit committees’ non-financial role.

https://eprints.bournemouth.ac.uk/37505/

Source: Scopus

Audit and CSR committees: are they complements or substitutes in CSR reporting, assurance and GRI framework adoption?

Authors: Uyar, A., Elbardan, H., Kuzey, C. and Karaman, A.S.

Journal: INTERNATIONAL JOURNAL OF ACCOUNTING AND INFORMATION MANAGEMENT

Volume: 31

Issue: 1

Pages: 1-36

eISSN: 1758-9037

ISSN: 1834-7649

DOI: 10.1108/IJAIM-04-2022-0086

https://eprints.bournemouth.ac.uk/37505/

Source: Web of Science (Lite)

Audit and CSR committees: are they complements or substitutes in CSR reporting, assurance and GRI framework adoption?

Authors: Elbardan, H., Uyar, A., Kuzey, C. and Karaman, A.S.

Journal: International Journal of Accounting and Information Management

Publisher: Emerald

ISSN: 1018-368X

DOI: 10.1108/IJAIM-04-2022-0086

Abstract:

Purpose - This study aims mainly to test the effect of audit committee independence and expertise attributes on corporate social responsibility (CSR) reporting, assurance, and Global Reporting Initiative (GRI) framework adoption and to investigate how CSR committee existence moderates this main relationship.

Design/methodology/approach - The study uses a large global sample that includes all (59,172) firm-year observations having CSR-related data in the Thomson Reuters Eikon database for a period between 2002 and 2019. The empirical analyses are based on random-effects logistic panel regression and Hayes methodology for the moderation analysis.

Findings - The study finds that audit committee independence and expertise are significantly associated with CSR reporting, CSR report assurance, and GRI framework adoption. Moderation analysis largely supports the existence of a substitution role between audit and CSR committees and implies that audit committees are significant predictors of CSR reporting, assurance, and GRI framework adoption mostly in the absence of the CSR committee.

Originality - This is the first study to investigate the direct and indirect effect of audit committees' attributes not only on CSR disclosure but also on GRI implementation and CSR reporting external assurance, considering the CSR committee's possible substitutability or complementarity moderating role. This research develops a deeper understanding of audit committees' non-financial role.

Practical implications - The findings propose audit committee members be extra-vigilant in CSR reporting and assurance practices arising from undertaking substitution roles with the CSR committee. Hence, firms may configure their corporate structure in line with the results such as augmenting the audit committee with independent and expert members if they do not constitute a CSR committee. If firms establish a CSR committee, audit committee members may allocate less time to CSR reporting and assurance and more time to financial reporting quality.

https://eprints.bournemouth.ac.uk/37505/

Source: Manual

Audit and CSR committees: are they complements or substitutes in CSR reporting, assurance and GRI framework adoption?

Authors: Uyar, A., Elbardan, H., Kuzey, C. and Karaman, A.

Journal: International Journal of Accounting and Information Management

Volume: 31

Issue: 1

Pages: 1-36

Publisher: Emerald

ISSN: 1834-7649

Abstract:

Purpose - This study aims mainly to test the effect of audit committee independence and expertise attributes on corporate social responsibility (CSR) reporting, assurance, and Global Reporting Initiative (GRI) framework adoption and to investigate how CSR committee existence moderates this main relationship.

Design/methodology/approach - The study uses a large global sample that includes all (59,172) firm-year observations having CSR-related data in the Thomson Reuters Eikon database for a period between 2002 and 2019. The empirical analyses are based on random-effects logistic panel regression and Hayes methodology for the moderation analysis.

Findings - The study finds that audit committee independence and expertise are significantly associated with CSR reporting, CSR report assurance, and GRI framework adoption. Moderation analysis largely supports the existence of a substitution role between audit and CSR committees and implies that audit committees are significant predictors of CSR reporting, assurance, and GRI framework adoption mostly in the absence of the CSR committee.

Originality - This is the first study to investigate the direct and indirect effect of audit committees' attributes not only on CSR disclosure but also on GRI implementation and CSR reporting external assurance, considering the CSR committee's possible substitutability or complementarity moderating role. This research develops a deeper understanding of audit committees' non-financial role.

Practical implications - The findings propose audit committee members be extra-vigilant in CSR reporting and assurance practices arising from undertaking substitution roles with the CSR committee. Hence, firms may configure their corporate structure in line with the results such as augmenting the audit committee with independent and expert members if they do not constitute a CSR committee. If firms establish a CSR committee, audit committee members may allocate less time to CSR reporting and assurance and more time to financial reporting quality.

https://eprints.bournemouth.ac.uk/37505/

Source: BURO EPrints