Evaluating the Effects of the Audit Committee's Characteristics on Voluntarily Disclosure of Information in Tehran Agricultural Stock Exchange

Document Type : Original Article


Department of Skills and Entrepreneurship, Babol Branch, Islamic Azad University, Babol, Iran


Separating ownership from managing, and conflicting interests of owners as brokers and managers cause agency problems and therefore, information asymmetry. One way to reduce these conflicting interests is to disclose information voluntarily beyond what is provided by companies, which improves the relationship between owners and managers. The purpose of this study is to evaluate the effects of the audit committee's characteristics on the voluntary disclosure of information (VDI) in companies listed on the Tehran Agricultural Stock Exchange in 2013-2016. VDI as a mechanism to reduce information asymmetry between managers and people outside companies reduces agency costs and improves the reports' transparency. To measure the amount of VDI in an annual report, a list of VDI was prepared by studying the accounting standards and rules governing the information reporting process measured by the Botosan checklist. The audit committee (AC) characteristics, which referred to its independence, expertise, and size, were evaluated in 81 companies listed on the Tehran Agricultural Stock Exchange over three years. It was found that only the size of the audit committee had a positive significant effect on the VDI, but no significant relationship was observed between its independence and expertise with the VDI.
Keywords: Owners and managers, market, audit committee, voluntary disclosure of information


Volume 5, Issue 2 - Serial Number 10
December 2021
Pages 62-74
  • Receive Date: 17 November 2020
  • Revise Date: 22 March 2021
  • Accept Date: 30 July 2021
  • First Publish Date: 30 July 2021