THE IMPACT OF AUDIT COMMITTEE'S FINANCIAL EXPERIENCE ON SUSTAINABILITY PERFORMANCE DISCLOSURE

Abstract

This research aims to find practical evidence on the extent to which there is a relationship between the audit committee financial experience and the sustainability performance disclosure, by conducting an applied study on a sample of joint stock companies listed on the Egyptian Stock Exchange during the period from 2015 to 2018. Forming audit committees is related to the goal of achieving credibility in financial reports, reducing fraudulent practices, and profits management. The lack of financial experience affects the perceived credibility of financial reports on the part of the external auditor. There is a positive impact of financial experience on the level of disclosure of sustainable performance (in its various dimensions) in terms of the nature of the information and the extent to which it is subject to assurance and certification services by a third party. The results of the research hypothesis test also indicate that there is a statistically significant positive effect of financial experience on governance disclosure, which indicates that there is a positive effect of financial experience on the quality of the accounting report in reference to the governance role exercised by the audit committee in preparing financial reports.