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Audit Committees and COVID-19-Related Disclosure Tone: Evidence from Oman

Author

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  • Badar Alshabibi

    (Faculty of Business Studies, University of Technology and Applied Sciences–Muscat, Al-Khuwair, Muscat 133, Oman)

  • Shanmuga Pria

    (Faculty of Business Studies, University of Technology and Applied Sciences–Shinas, Al-Aqur, Shinas 324, Oman)

  • Khaled Hussainey

    (Accounting and Financial Management Subject Group, Faculty of Business and Law, University of Portsmouth, Portsmouth PO1 2UP, UK)

Abstract

In this study, we content analyzed chairman’s statements to measure the tone of COVID-19-related disclosure in Omani listed firms for the year ending 2020. We also examined whether audit committee (AC) characteristics influence disclosure tone. After controlling for corporate board and firm characteristics, our regression analysis showed that two AC characteristics (gender diversity and overlapped directors) positively affect good news information and negatively affect bad news information. It also showed that AC size positively affects bad news information. No evidence was found that the AC independence, meeting frequency, multi-directorships, and financial expertise have an impact on the tone of COVID-19-related disclosures. Our paper contributes to the growing literature by being the first study to examine whether AC characteristics influenced disclosure tone during the COVID-19 pandemic. Our results indicate that investors and regulatory bodies should take AC characteristics into account in determining the tone of COVID-19-related disclosures.

Suggested Citation

  • Badar Alshabibi & Shanmuga Pria & Khaled Hussainey, 2021. "Audit Committees and COVID-19-Related Disclosure Tone: Evidence from Oman," JRFM, MDPI, vol. 14(12), pages 1-17, December.
    • Handle: RePEc:gam:jjrfmx:v:14:y:2021:i:12:p:609-:d:703208
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    1. Filippo Vitolla & Vitiana L?Abate & Nicola Raimo & Arcangelo Marrone, 2024. "Gli effetti della pandemia da COVID-19 sulla disclosure aziendale. Un?analisi empirica nella prospettiva dell?Integrated Reporting," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2024(1), pages 155-177.
    2. Fahad Alrobai & Maged M. Albaz, 2024. "Capturing Disclosure Tone in Saudi Arabia: Do Earnings Management and Accounting Conservatism Matter?," Sustainability, MDPI, vol. 16(14), pages 1-18, July.

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