Purpose : This study explores the relationship between corporate social responsibility (CSR) practices, audit quality, and the moderating effect of audit committee expertise in the European context.
Design/Methodology/Approach: Using a quantitative research design, we examine data from non-financial firms listed on the stoxx European companies over the period 2010-2022. We evaluate the effect of CSR on audit quality using a range of regression methods, and we look at the ways in which the experience of audit committee members modetrates this link.
Findings : Our findings are consistent with the theory that CSR initiatives have a positive impact on audit quality in European context.We argue that the audit committee expertise moderates the relationship between corporate social responsibility and audit quality. Our findings provide valuable insights for companies in developing markets, emphasizing the influence of CSR on audit quality and underscoring the role of audit committee expertise in enhancing its effectiveness.
Originality: This research advances the literature on CSR and audit quality by focusing on a rapidly developing market and offering guidance to companies in comparable environments. It underscores the vital role of audit committee expertise in unlocking the financial benefits of CSR practices.