Effect of Audit Committee Attributes on the Disclosure of Related Party Transactions

The objective of the study is to investigate the relationship between audit committee attributes and related party transaction (RPT) disclosures. Sample firms are collected from all companies listed on Bursa Malaysia with sufficient related party transactions from 2009-2015. The findings reveal that audit committee size and audit committee expertise have a positive and significant relationship with RPT disclosure. These indicate that by having large audit committee and large number of financial expert on audit committee can significantly improve companies RPT disclosure. However, having board chairman in the audit committee weakens its disclosure monitoring role. It is recommended that security commission should restrain the firms from appointing the board chairman as a member of the audit committee.