Gender diversity in the audit committee and the efficiency of internal control and financial reporting quality

Din, Nizam Ud; Cheng, Xinsheng; Ahmad, Bashir; Sheikh, Muhammad Fayyaz; Adedigba, Olawoyin Gregory; Zhao, Yang; Nazneen, Shama

doi:10.1080/1331677x.2020.1820357

Cited by 22 publications

(13 citation statements)

References 54 publications

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“…The literature confirms that female directors' behavior and managerial style are different from their male counterparts (Palvia et al, 2015;Ud Din et al, 2021). The study of Palvia et al (2015) confirms that the female leaders and members of the board are more risk-averse as they assess the risks more cautiously and conservatively.…”

Section: Gender Diversity Female Financial Experts and Stock Price Synchronicitymentioning

confidence: 64%

“…As indicated by the BRC (1999), AC is the "ultimate monitor of the [financial reporting] process." In addition, the female leadership: either in the form of chief executive officer (CEOs), AC chairs or board members, is different from its male counterpart in a way that female leaders tend to be more conservative and risktolerant and manage risks effectively even in periods of market stress (Palvia et al, 2015;Ud Din et al, 2021). For instance, female directors in the AC and AC chaired by the female members are valued by the users of financial statements (e.g.…”

Section: Introductionmentioning

confidence: 99%

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Audit committee characteristics, enterprise risk management and stock price synchronicity

Ghafoor

Ahmed

Hassan

2021

MAJ

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Purpose This study aims to examine the impact of audit committee (AC) characteristics and enterprise risk management (ERM) on stock price synchronicity (SYNCH). Design/methodology/approach Based on a sample of 437 US-based firms over the period 2010 to 2017, the current study uses fixed-effect and ordinary least square to test the formulated hypotheses. Majority of the sample firms are based on the S&P 500 index. This study also performs a battery of robustness checks. Findings The authors find that overall female members and female financial experts and female chairpersons of the AC are negatively associated with SYNCH. Similarly, the study endorses the monitoring role of financial experts and the diligence of the AC (threshold of four annual meetings), as both are negatively associated with SYNCH. However, the authors find that the AC chaired by the financial expert is also negative but insignificantly associated with SYNCH. Finally, the study finds that ERM is also negatively linked with SYNCH. Practical implications The findings of the current study offer some important policy implications. For instance, the shareholders can benefit from the monitoring abilities of women and financial experts by increasing their ratio in the AC. The study also offers some useful insights regarding the financial experts and chair of the AC and ERM. Originality/value The current study examines the association of AC characteristics with SYNCH, while the prior literature only assesses the impact of various board characteristics (such as size, independence and gender diversity). The study also contributes to the literature of ERM by providing new insights on the influence of the presence of ERM framework/program on SYNCH.

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Section: Gender Diversity Female Financial Experts and Stock Price Synchronicitymentioning

confidence: 64%

Section: Introductionmentioning

confidence: 99%

Audit committee characteristics, enterprise risk management and stock price synchronicity

Ghafoor

Ahmed

Hassan

2021

MAJ

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“…Some studies found a positive association between gender diversity in the audit committee on the quality of financial reports (e.g., Gul et al, 2007;Wahid, 2019). In contrast, some studies have found that women members in the audit committee negatively affect financial reports' quality (e.g., Ud Din et al, 2021;Zalata, 2022).…”

Section: -Audit Committee Members' Gender Diversitymentioning

confidence: 99%

لجنة المراجعة الفعالة وجودة التقاریر المالیة: الأثر الوسیط لجودة المراجعة دلیل من المملکة العربیة السعودیة(باللغة الانجلیزیة)

الشعراوی¹

2022

مجلة الاسکندریة للبحوث المحاسبیة

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The purpose-This study aims to examine the mediating effect of audit quality on the relationship between the effective audit committee and financial reporting quality. Design/ methodology/ approach-The research uses multiple regression analysis to test the relationship between the effective audit committee and financial reporting quality. The sample consists of 77 non-financial firms listed on the Saudi stock market between 2014 and 2021. Findings -Empirical findings show that studies on effective audit committees and financial reporting quality displayed mixed results. The study findings indicate that audit quality has a mediation effect on the relationship between audit committee characteristics (more oversized Audit Committee, financial expertise, frequent meetings, gender diversity, independent members) and financial reporting quality. The study findings indicate that a change in audit committee effectiveness brings a change in audit quality, and a difference in audit quality brings a shift in financial reporting quality. Practical implications-This study has important implications for regulators and policymakers to address the conflict between insiders and outsiders by promoting a higher standard of financial reports. The study also may be useful to investors, aiding them in financial decision-making and helping all stakeholders understand and trust the fairness and quality of financial information. In addition, it helps to understand the role that an effective audit committee plays in external audit quality and financial reporting quality. Finally, the study also contributes by bringing a new perspective on how external audit quality engages in monitoring by requesting financial reporting quality. Originality/ value -The main contribution of the current paper is to examine the audit fees (audit quality) as a potential mediating variable between the effective audit committee and financial reporting quality.

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“…Other studies address the quality of accounting information with particular emphasis on financial statements. A great number of studies focus on topics such as the impact of financial reporting on stock prices behavior (Cox and Weirich, 2002;Fé Jr et al, 2015;Patro and Gupta, 2016); earnings management (Hunton et al, 2015;Rathke et al, 2016;Hastuti et al, 2016;Šušak, 2020;Cug and Cugova, 2021;Nadhir and Wardhani, 2021); financial reporting quality and IFRS adoption (Vysotskaya and Mikhalkina, 2018;Musa, 2019;Mensah, 2020;Habib et al, 2021); financial reporting, audit, and internal control (Mojtaba et al, 2020;Qu, 2020;Safari et al, 2021;Din et al, 2021); or corporate governance (Huiying and Patel, 2015;Jacek, 2020;Almaqtari et al, 2020;Martins and Júnior, 2021).…”

Section: Literature Reviewmentioning

confidence: 99%

Assessing the Perceived Usefulness of Accounting Information in Albania

Demiraj¹,

Shkurti²,

Demiraj³

2021

MERJ

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This study attempts to provide a general overview on the use of accounting information in Albania. An extensive use of accounting information by different stakeholders would be a testimony of the quality and reliability of accounting information, but the opposite would indicate otherwise calling for improvement in the area of financial reporting. Data are collected by means of a questionnaire. All respondents are certified accountants, members of the biggest and most prominent-certified accountants association in Albania. The questionnaire reveals that in general accounting, information is not heavily used neither by entities’ management nor by other users. Surprisingly, users of accounting information that are closest to the entity use it very little or not at all, raising big questions on the quality and trustworthiness of accounting information. The study is just an initial assessment of the perceived usefulness of accounting information in Albania. The questionnaire is addressed to certified accountants who answer on behalf of their client companies. The study investigates the usefulness of accounting information as perceived by various stakeholders in Albania. Even though this is a well-researched topic worldwide, to the knowledge of the authors there are no such studies in Albania.

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Gender diversity in the audit committee and the efficiency of internal control and financial reporting quality

Cited by 22 publications

References 54 publications

Audit committee characteristics, enterprise risk management and stock price synchronicity

Audit committee characteristics, enterprise risk management and stock price synchronicity

لجنة المراجعة الفعالة وجودة التقاریر المالیة: الأثر الوسیط لجودة المراجعة دلیل من المملکة العربیة السعودیة(باللغة الانجلیزیة)

Assessing the Perceived Usefulness of Accounting Information in Albania

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