Does Audit Committee Matter for Corporate Social Performance?: Evidence From India

Abstract

This study examines the effect of audit committees on corporate social performance. Using a sample of Indian firms for the 2008–2021 period, we find that the firm's corporate social performance is significantly higher in the presence of an audit committee. This relationship is stronger when the audit committee consists of more directors. Our results support the resource dependence theory, which indicates that the members of each committee on the board provide various resources to the firms in the form of their skills and expertise. Our study has an implication for the regulators that more transparency should be required in the audit committee to ensure better corporate governance.