The Effect of the board's independence on the quality of social information disclosure in Annual Reports

Today, noone could ignore the importance of transparency in financial reporting, because shareholders and creditors of important decisions use their investment, according to financial information of companies. Appropriate disclosure with transparency in financial reporting can create secure conditions andpromote investor confidence. In this study, the effect of board independence on the quality of social disclosures in the annual reports will be discussed. In this study, we investigate the effect of thenon-executive directors’ number, board size, andthe number of board meetings on social disclosures quality in annual reports. The study was carried out in the period 2015-2011. The statistical population of this research is firms listed on the Tehran Stock Exchange. The multiple regression has been used to test the research hypothesis. The results showed the numbers of non-executive directors and board size have an effect on the quality of social disclosures, but the numbers of board meetings have no effect on social disclosures quality in annual reports.