Abstract:
The main purpose of the study paper was to determine the effect of audit committee characteristics on firm risk disclosure. Agency Theory informed the study. This study adopted a correlation research design. The target population for the study comprised of the 61 listed firms at Nairobi Securities Exchange(NSE) Census technique; was used in the study since it only captured all the 45 firms that had consistently been operating at the NSE for the past 8 years from 2005-2012 irrespective of their industry or market segment. This study utilized secondary data, and data were collected by use of content analysis. A document analysis guide was prepared to enable and guide the collection of data. Data collected was analyzed by use of descriptive statistics, for example, mean, and standard deviations were used, and inferential statistics which included Pearson correlation tested hypothesis and data were presented using tables. The results were likely to be of interest to investors because it provided a basis for evaluating a company’s risk and risk management strategies contained in the annual reports.
