Audit Committee Diversity toward Voluntary Disclosure Reporting With Existence of Regulatory Regime as Moderation Variable
Ali Shariff Kabara1, Dewi Fariha Abdullah2, Aniza Bint Othman3
1Ali Shariff Kabara, Department of Accounting and Finance, Faculty of Management, Universiti Teknologi Malaysia, Johor, Malaysia.
2Dewi Fariha Abdullah, Department of Accounting and Finance, Faculty of Management, Universiti Teknologi Malaysia, Johor, Malaysia.
3Aniza Bint Othman, Department of Accounting and Finance, Faculty of Management, Universiti Teknologi Malaysia, Johor, Malaysia.
Manuscript received on 28 September 2019 | Revised Manuscript received on 10 November 2019 | Manuscript Published on 22 November 2019 | PP: 994-1001 | Volume-8 Issue-6S3 September 2019 | Retrieval Number: F11040986S319/19©BEIESP | DOI: 10.35940/ijeat.F1104.0986S319
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The audit committee is a fundamental and prerequisite tool for fulfilling board’s monitoring role of ensuring transparency, financial and managerial efficiency. Therefore, it has been applied to address perceived governance failure. This paper aims to critically review the previous literature on the relationship between audit committee diversity as a major corporate governance mechanism and corporate voluntary disclosure reporting (CVDR) with a change in the regulatory regime as moderation variable. This review specifically evaluates theoretical and empirical literature related to audit committee diversity like independence, financial expertise, accounting expertise; and CVDR in order to highlight some important areas of gaps for future research in this field. It also, emphases the need for a more qualitative method for better understanding of the relationship. This paper proposes that examining the moderating influence of the change of the regulatory regime with regard to CVDR would provide more insight into the link between audit committee diversity and CVDR. The policy implication of the study is also discussed. Lastly, the paper stresses the importance of studies linking audit committee diversity and CVDR, which are quite scanty in the existing literature.
Keywords: Corporate Governance, Audit Committee Diversity, Voluntary Disclosure, Regulatory Regime.
Scope of the Article: e-governance