Does audit committee characteristics a driver in risk disclosure?

Figures & data

Table 1. Variable measurement

Variable	Measurement
Risk Disclosures (RD)	Giving the number 1 to the RD items disclosed by the company and the number 0 on the items not disclosed by the company through its annual report is then calculated as a percentage. Minimum value = 0, maximum value = 1
Size of the audit committee (AC_Size)	Number of audit committee members
Audit committee expertise (AC_Exp)	A member of the audit committee who has a financial or accounting background
Number of audit committee meetings (AC_Meet)	Number of audit committee meetings in 1 year
Company Size (SIZE)	Ln Total assets
Leverage (LEV)	Comparing total debt against total equitas
Company Age (AGE)	Listing Age

Table 2. Descriptive statistics

Variables	Obs	Mean	Min	Max
Risk Disclosure Index	202	0.985148	0.125	1
AC_Size	202	3.881188	3	10
AC_Exp	202	2.792079	1	6
AC_Meet	202	11.07426	3	30
SIZE	202	10.62061	7.724888	14.36109
LEV	202	6.211269	0.005941	113.3034
AGE	202	15.61881	1	40

Information: RD = Risk Disclosures; AC_Size = Size of the audit committee; AC_Exp = Expertise of the audit committee; AC_Meet = Number of audit committee meetings; SIZE = Company Size; LEV = Leverage; AGE = Company Age

Table 3. Regression results

AC_Size	−0.0128293	(0.225)
AC_Exp	0.0276344*	(0.008)
AC_Meet	0.0010777	(0.499)
SIZE	0.0020342	(0.930)
LEV	0.0006312	(0.435)
AGE	−0.0057197	(0.209)
Adj. R2	0.0014
F-Statistics	1.7700
Prob F-Statistics	0.1086

Information: RD = Risk Disclosures; AC_Size = Size of the audit committee; AC_Exp = Expertise of the audit committee; AC_Meet = Number of audit committee meetings; SIZE = Company Size; LEV = Leverage; AGE = Company Age

*Significance level: 5%

Table 4. Tobit models

AC_Size	−0.0051644
	(0.431000)
AC_Exp	0.0152013*
	(0.040000)
AC_Meet	0.0007329
	(0.508000)
SIZE	0.000390
	(0.940000)
LEV	0.000064
	(0.924000)
AGE	0.000068
	0.925000
Observation	202

Information: RD = Risk Disclosures; AC_Size = Size of the audit committee; AC_Exp = Expertise of the audit committee; AC_Meet = Number of audit committee meetings; SIZE = Company Size; LEV = Leverage; AGE = Company Age

*Significance level: 5%

Table 5. Additional tests

AC_Size	−0.0035451
	(0.601000)
AC_Exp	0.014771*
	(0.049000)
AC_Meet	0.000821
	(0.467000)
SIZE	−0.002702
	(0.643000)
LEV	0.000198
	(0.774000)
AGE	0.000337
	(0.663000)
Observation	202

Information: RD = Risk Disclosures; AC_Size = Size of the audit committee; AC_Exp = Expertise of the audit committee; AC_Meet = Number of audit committee meetings; SIZE = Company Size; LEV = Leverage; AGE = Company Age

*Significance level: 5%