Audit committee characteristics nexus corporate social responsibilities disclosure of insurance companies in Ethiopia

Abstract

In light of the increasing focus on the audit committee's potential influence on financial and non-financial reporting, this study aims to explore the impact of audit committee characteristics on the corporate social responsibility disclosures of insurance companies in Ethiopia from 2015 to 2022. The research employed the generalized method of moments (GMM) model to analyze the relationship. The findings indicate that the size of the audit committee (ACS), its independence (ACI), gender diversity (ACGD), and financial expertise (ACFE) significantly and positively influence the disclosure of corporate social responsibility by Ethiopian insurance companies. Conversely, factors such as the frequency of audit committee meetings (ACMF), the age of committee members (ACA), and their tenure (ACT) were found to have a significant and negative impact on these disclosures. Consequently, the study concludes that the characteristics of the audit committee, namely, size, independence, gender diversity, and meeting frequency, play a crucial role in shaping the corporate social responsibility disclosures of insurance companies in Ethiopia. It is therefore recommended that policymakers in the insurance sector enhance and fortify internal governance mechanisms. Additionally, these policymakers need to treat all audit committee characteristics as vital components that foster improved corporate social responsibility disclosures.