THE EFFECT OF THE AUDIT COMMITTEE CHARACTERISTICS ON THE  EXTENT OF VOLUNTARY DISCLOSURE IN PALESTINE: ASSESSING  THE MODERATING EFFECT OF CORPORATE GOVERNANCE

Farah Nabeel Sleem

THE EFFECT OF THE AUDIT COMMITTEE CHARACTERISTICS ON THE EXTENT OF VOLUNTARY DISCLOSURE IN PALESTINE: ASSESSING THE MODERATING EFFECT OF CORPORATE GOVERNANCE

Date

2024-09-05

Authors

Farah Nabeel Sleem

Publisher

جامعة النجاح الوطنية

Abstract

This study seeks to investigate how Audit Committee (AC) and Corporate Governance (CG) influence the extent of Voluntary Disclosure (VD) in Palestine considering transparency and disclosure as fundamental pillars of CG system. In. It aims to investigate this conflict of interest by investigating what are the possible factors that influence the extent of voluntary disclosure in Palestine. It has been conducted on non-financial sectors in Palestine including 36 companies from 2009-2021. The analysis has been conducted by using multiple linear regression of Ordinary Least Square method (OLS) by using three models. AC effectiveness, CG effectiveness and VD index data were collected from disclosures on annual reports using a checklist. To begin with, the effect of AC on the extent of VD has been investigated as well as the effect of CG on the extent of VD, and the interaction term between AC and CG on the extent of VD. It has been found that AC and GG have direct influence on VD, ; however, this impact is moderated by CG as the interaction term between AC and CG positively affect the extent of VD. This Study recommends that companies in Palestine adopt more voluntary disclosure practices, given the unique economic challenges posed by the Isreali occupation. Additionally, fostering stakeholder engagement through platforms for information sharing can enhance transparency and accountability. Introducing incentives for transparency practices and regularly evaluating corporate governance and disclosure methods are also critical for ensuring compliance and identifying areas for improvement.