Risk Disclosure: The Effect of Audit Committee Characteristics

The existence of transparent and quality information is one of the main needs of investors. Audi committee as a corporate governance mechanism increases the quality and transparency of the financial information. The purpose of this study is to investigate the relationship between the characteristics of the audit committee and corporate risk disclosure. The risk disclosure index has been calculated using the manual content analysis method. Also, for the audit committee characteristics, the variables of the degree of independence, the degree of financial expertise, and the size of the audit committee have been used. The research sample includes 68 companies for the period 2013 to 2019. The results indicate that among the characteristics of the audit committee, only the size of the audit committee had a significant and direct relationship with the level of risk disclosure. This result is consistent with the resource dependence theory. In addition, among the characteristics of the board of directors, the board financial expertise had a significant relationship with risk disclosure. These mean with increasing the financial expertise of the board of directors, risk disclosure has increased.