The effect of audit committee effectiveness and audit quality on corporate voluntary disclosure quality

Abstract

Purpose The purpose of this paper is to examine the linkages between audit committees’ (AC) effectiveness, audit quality and corporate voluntary disclosure quality (VDQ). Design/methodology/approach Empirical tests address 144 firm-year observations drawn from Ghanaian listed companies during 2013–2016. Findings The results document a substitute and complementary effect between the presence of Big Four auditor and effective AC in increasing quality voluntary disclosure. Originality/value This study is one of the few that have examined the effect of AC effectiveness and audit quality on corporate VDQ. The findings lend credence to the belief that AC effectiveness and Big Four auditors complement each other to enhance quality of voluntary information disclosure.