The impact of audit committee diversity on disclosure quality: a systematic literature review and future research agenda and suggestions

Abstract

This paper presents a comprehensive systematic literature review on the impact of audit committee diversity on disclosure quality. The study adheres to the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines to select the journal publications included in the review. It examines 66 articles from 25 journals that are rated 3 and 4 stars by the Chartered Association of Business Schools Academic Journal Guide (AJG), published between January 2000 and July 2023. Theoretical findings from the review indicate that most of the articles rely on a single theoretical framework (i.e., agency theory) without thoroughly engaging with the hypotheses or the implications of their findings. Additionally, some papers do not clearly identify any theoretical foundation for their arguments. The systematic review literature highlights that 81% of the studies employ a quantitative approach, while only 9% utilize qualitative analysis. Furthermore, 37% of the articles in the sample lack a theoretical explanation for their findings. The study reveals a shortage of cross-country studies, methodological limitations, measurement inconsistencies, and a predominance of quantitative studies. This research contributes to the existing literature by clarifying how audit committee diversity impact disclosure quality. The findings carry significant implications for regulators, as they emphasize the effect of audit committee diversity on disclosure quality. This understanding could assist regulators in identifying the various factors that influence disclosure quality and in developing effective regulations and requirements. Moreover, this study updates and extends previous reviews regarding the relationship between audit committee diversity on disclosure quality and identifies potential avenues for future research.