Corporate Governance and Intellectual Capital Archive Board of Director Determinants of Voluntary Audit Committee Disclosures: Evidence from Singapore

This study empirically examines the association between certain of director of director characteristics and the extent of voluntary audit committee disclosure in annual reports. This study focuses on board of director characteristics because as the audit committee is a major standing committee of the board, it is likely directors will be directly interested and affected by disclosures related to this central monitoring mechanism. Audit committee disclosures (or the lack thereof) could affect judgment of directors’ corporate governance accountability thereby impacting on their reputation. Results suggest Singapore publicly traded firms more likely to voluntarily disclosure audit committee related information when (1) the number of members serving on the board is greater, (2) a firm segregates the roles of CEO and Chairperson of the board and (3) there are a higher proportion of independent directors serving on the board. Findings do not show any association between the amount of voluntary audit committee disclosure and (a) the percentage of inside directors’ ownership and (b) the presence of a significant block holder serving on the board of directors. Additionally, Singapore publicly traded firms operating in business sectors regulated by the government or with more extensive international operations were also more likely to voluntarily disclosure more audit committee related information.