The Effect of Audit Committee Characteristics on Corporate Social Responsibility Practices. Evidence from Spain

This chapter investigates the correlation between the attributes of audit committees and the extent of Corporate Social Responsibility (CSR) initiatives among Spanish companies listed in the Spanish Monitor of Corporate Reputation. Our analysis employs multiple regression techniques, utilizing data from a non-uniform panel encompassing Spain’s top 100 reputable firms from 2011 to 2022. Consistent with earlier research, CSR performance is gauged using the Spanish Monitor of Corporate Reputation index. The audit committee’s features are assessed through three variables: size, level of independence and frequency of meetings. The research reveals a strong and positive correlation between Corporate Social Responsibility practices and specific audit committee characteristics, including the presence of independent members and the frequency of committee meetings. In addition, we provide evidence of a positive association between Corporate Social Responsibility practices and audit committee quality. Nonetheless, we observe no notable correlation between the size of the audit committee and the implementation of Corporate Social Responsibility practices.