Document Type : Research Paper
Authors
1 PhD Student of Accounting Islamic Azad University
2 Assistant Professor of Accounting, Islamic Azad University
3 Assistant Professor of Mathematics and Statistics, Islamic Azad University
Abstract
In recent years, the participation of women in corporate governance, especially on boards of directors and audit committees, has considerably increased. Examining the effects of female audit committee members on agency costs and bankruptcy risk, this study aims to answer the question of whether presence of women on the audit committee are associated with the improvement of its effectiveness. In this respect, 662 firm-year observations of listed companies on the Tehran Stock Exchange were analyzed for the period 2012-2017, employing the method of panel data and Generalized Least Squares (GLS). The research findings revealed that female presence on audit committees has a significant negative association with agency costs and bankruptcy risk. In other words, female presence on audit committees leads to the reduction in agency costs and bankruptcy risk. It can be concluded that women make better monitors, and they are more risk-averse and less tolerant towards managers’ opportunistic behaviors and, thus, lead to the enhancement in the effectiveness of audit committee.
Keywords
1[ ارباب سلیمانی، عباس؛ نفری، محمود (1378). اصـول حـسابرسی، تهـران: سازمان حسابرسی.
]2[ اورادی، جواد؛ لاری دشت‌بیاض، محمود؛ سالاری فورگ، زینب (1395). «بررسی رابطة بین ویژگی‌های کمیتۀ حسابرسی و عملکرد شرکت»، دانش حسابداری مالی، ش 4، ص 111ـ131.
]3[ اسلامی بیدگل، غلامرضا، نیکومرام، هاشم و همکاران (1390). «محافظهکاری حسابداری و بحران مالی شرکتهای پذیرفته‌شده در بورس اوراق بهادار تهران»، دانش مالی و تحلیل اوراق بهادار، دورة 4، ش 9، ص 125ـ146.
]4[ ایمانی برندقی، محمد؛ عبدی، مصطفی؛ کاظمی علوم، مهدی (1397). «بررسی تأثیر تنوع جنسیتی در کمیتۀ حسابرسی بر حقالزحمۀ حسابرسیِ شرکتهای پذیرفته‌شده در بورس اوراق بهادار تهران»، بررسیهای حسابداری و حسابرسی، ش 3، ص 303ـ322.
]5[ باباجانی، جعفر؛ بابایی، مسعود (1390). «تأثیر استقرار واحد حسابرسی داخلی و تشکیل کمیتۀ حسابرسی در ارتقای مسئولیت پاسخگویی مالی دانشگاهها مؤسسات آموزش عالی و تحقیقاتی»، دانش حسابداری، ش 4، ص 7ـ27.
]6[ برزگر، قدرت‌الله؛ حسن نتاج کردی، محسن؛ ملکی، دنیا (1398). «بررسی اثر ویژگی‌های کمیتة حسابرسی بر افشای مسئولیت اجتماعی شرکتها»، بررسیهای حسابداری و حسابرسی، ش اول، ص 19ـ38.
]7[ رضائی پیتهنوئی، یاسر؛ محسنی، خدیجه (1397). «بررسی ارتباط بین حضور زنان در هیئت‌مدیره و ضعف کنترل داخلی، شواهدی از شرکتهای پذیرفته‌شده در بورس اوراق بهادار تهران»، زن در توسعه و سیاست، ش 3، ص 439ـ456.
]8[ سپاسی، سحر؛ عبدلی، لیلا (1395). «تأثیرات حضور زنان در هیئت‌مدیره بر ارزش شرکت و عملکرد مالی»، پژوهش‌های حسابداری مالی و حسابرسی، ش 29، ص 39ـ58.
]9[ صالحی، مهدی؛ اورادی، جواد؛ سالاری فورگ، زینب (1395). «تأثیر وجود کمیتۀ حسابرسی و ویژگی‌های آن بر تأخیر گزارش حسابرسی»، دانش حسابداری، ش 26، ص 59ـ83.
]10[ عبدی، مصطفی؛ ثنایی محمدی، محمدحسین و همکاران (1398). «اثربخشی ویژگی‌های کمیتة حسابرسی بر عدم تقارن اطلاعاتی: دیدگاه نظریة نمایندگی»، دانش حسابرسی، ش، 74، ص ۲۰۹ـ۲۳۶.
]11[ عباسی، ابراهیم؛ خطیبیفر، فرزانه (1395). ارتباط بین ساختار حاکمیت شرکتی و درماندگی مالی، اولین همایش پژوهش‌های کاربردی در مدیریت صنعتی.
]12[ کاظمی علوم، مهدی؛ ایمانی برندق، محمد؛ عبدی، مصطفی (1398). «بررسی تأثیر تنوع جنسیتی در هیئت مدیره و کمیتۀ حسابرسی بر کیفیت سود»، دانش حسابداری، ش 1، ص 137ـ168.
]13[ مشکی میاوقی، مهدی؛ هاشمی سعادت، مریم (1394). «بررسی رابطة حاکمیت شرکتی با احتمال ورشکستگی در شرکتهای پذیرفته‌شده در بورس اوراق بهادار تهران»، پژوهش حسابداری، ش 17، ص 37ـ57.
[14] Abbott, L. J., Parker, S. & Presley, T. J. (2012). “Female board presence and the likelihood of financial restatement”, Accounting Horizons, 26 (4), PP 607-629.
[15] Adams, R. B. & Ferreira, D. (2009). “Women in the boardroom and their impact on governance and performance”, Journal of Financial Economics, 94 (2), PP 291-309.
[16] Ahmed, A.,.Monem, R., Delaney, D., and Ng, C. (2017). “Gender diversity in corporate boards and continuous disclosure: Evidence from Australia”, Journal of Contemporary Accounting & Economics, 13 (2), PP 89-107.
[17] Ahmed, H, Kamardin, H,. (2015). Internal and External Audit Attributes, Audit Committee Characteristics, Ownership Concentration and Earnings Quality: Evidence from Malaysia, Mediterranean Journal of Social Sciences, Doi:10.5901/mjss.2015.v6n3p458.
[18] Alvarado, N., de Fuentes, P. and Laffarga, J. (2017). “Does board gender diversity influence financial performance?”, Evidence from Spain, Journal of Business Ethics, 141 (2), PP 337-350.
[19] Bansal. N, A, K.Sharma. (2016). Audit committee, corporate governance and firm performance. International Journal of Economics and Finance; Vol. 8, No. 3.
[20] Cadbury, A. (1992). Report on the Committee on the Financial Aspects of Corporate Governance, Gee, London.
[21] Cai, C, X,. David, H,. Gaoliang, T,. Qinghua, W,. (2015). Do audit committees reduce the agency costs of ownership structure?, Pacific-Basin Finance Journal, doi.org/10.1016/j.pacfin.2015.01.002.
[22] Carter, D. A., Souza, F. D., Simkins, B.J. & Simpson, W.G. (2010). “The gender and ethnic diversity of US boards and board committees and firm financial performance”, Corporate Governance: An International Review, 18 (5), PP 396-414.
[23] Chen, Y., Eshleman, J, D. and Soileau, J, S. (2016). “Board Gender Diversity and Internal Control Weaknesses”, Advances in Accounting, 33, PP 11-19.
[24] Chuang, L.; Xiuhong, L.; and L. Zhang (2010). Earnings Quality and the Agency Costs of Controlling Shareholder International Conference on E-Business and E-Government, PP 5132-5135.
[25] Dawson, L. (1997), “Ethical Difference between men and women in sales profession”, Journal of Business Ethics, Vol. 16 No. 1, PP 1143-1152.
[26] Dey, A. (2008). “Corporate governance and agency conflicts”, Journal of Accounting Research, 46(5): PP 1143-1181.
[27] Eshleman, J. D., & Lawson B. (2017). “Audit market structure and audit pricing”, Accounting Horizons, 31 (1), PP 57-81.
[28] Francis, B., Hasan, I., Park, J. C. and Wu, Q. (2015). “Gender Differences in Financial Reporting Decision Making: Evidence from Accounting Conservatism”, Contemporary Accounting Research, 32 (3), PP 1285-1318.
[29] Gul, F. A., Srinidhi, B. & Ng, A. C. (2011). “Does gender diversity improve the informativeness of stock prices”, Journal of Accounting and Economics, 51, (3). PP 314-38.
[30] Ittonen, K., Miettinen, J. & Vahamaa, S. (2010). “Does female representation on audit committees affect audit fees”, Quarterly Journal of Finance and Accounting, 49 (3/4), PP 113-139.
[31] Jensen, M., & Meckling, W. (1976). “Theory of the firm: Managerial behavior, agency costs and ownership structure”, Journal of financial economics, 3: PP 305-360.
[32] Jia, J. (2019). Does risk management committee gender diversity matter? – A financial distress perspective, Managerial Auditing Journal, In Press.
[33] Kalbers, L., & Fogarty, T.(1993). “Audit committee effectiveness: An empirical investigation of the contribution of power”, Auditing: A Journal of Practice and Theory, 12 (1), PP 24-49.
[34] Lai, K, M, Y., Srinidhi, B., Gul, F, A., and Tsui, J, S, L. (2017). “Board gender diversity, auditor fees, and auditor choice”, Contemporary Accounting Research, 34 (3), PP 1681-1714.
[35] Lakshan, A, M, I. W. M. H. N. Wijekoon. (2012). “Corporate governance and corporate failure”, Procedia Economics and Finance, 2 (1): PP 191-198.
[36] Lin, J. W., and Hwang, M. I. (2010). “Audit quality, corporate governance, and earnings management: a meta-analysis”, International Journal of Auditing, 14 (1), PP 57-77.
[37] Lopez, D. M., Rich, K. T., and Smith, P. (2013). “Auditor size and internal control reporting differences in nonprofit healthcare organizations”, Journal of Public Budgeting, Accounting and Financial Management, 25 (1), PP 41-68.
[38] Martinov,N.B, Dominic S.B. and Soh, D.T. (2015). “An investigation into the roles, characteristics, expectations and evaluation practices of audit committees”, Managerial Auditing Journal, Vol (30) Iss 8/9, PP 727 – 755.
[39] McMullen, D. A., and Raghunandan, K. (1996). “Enhancing audit committee effectiveness”, Journal of Accountancy, 182 (2), PP 79-81.
[40] Nadeem, M., De Silva, T., Gan, C., and Zaman, R. (2017). “Boardroom gender diversity and intellectual capital efficiency”, Evidence From China, Pacific Accounting Review, 29 (4), PP 590-615.
[41] Niederle, M., and Vesterlund, L. (2007). “Do women shy away from competition? Do men compete too much?”, The Quarterly Journal of Economics, 122 (3), PP 1067-1101.
[42] Post, C., and Byron, K. (2015). “Women on boards and firm financial performance”, A Meta-Analysis, Academy of Management Journal, 58 (5), PP 1546-1571.
[43] Oradi, J., and Izadi, Z, D, J. (2019). Audit committee gender diversity and financial reporting: evidence from restatements, Managerial Auditing Journal, In Press.
[44] Ray, D. M. (2005). “Corporate boards and corporate democracy”, Journal of Corporate Citizenship, 20, PP 93-105.
[45]Rashid, A. (2015). “Revisiting Agency Theory: Evidence of Board Independence and Agency Cost from Bangladesh”, Journal of Business Ethics, 130, PP 181–198
[46] Srinidhi, B., Gul. F. and Tsui, J. (2011). “Female directors and earnings quality”, Contemporary Accounting Research, 28 (5). PP 1610-1644.
[47] Stephen, O A, Iyoha, F, O, & Obigbemi, I, F, (2014). Effectiveness of Audit Committee and Firm Financial Performance in Nigeria: An Empirical Analysis.Journal of Accounting and Auditing: Research & Practice http://www.ibimapublishing.com/journals/JAARP/jaarp.html, DOI: 10.5171/2014.301176.
[48] Thiruvadi, S., & Huang, H. W. (2011). “Audit committee gender differences and earnings management”, Gender in Management: An International Journal, 26 (7), PP 483-498.
[49] Usman, M, Farooq, M.U., Zhang, J., Makki, A.M.M., & Khan, M. K. (2019). Female directors and the cost of debt: Does gender diversity in the boardroom matter to lenders?. Managerial Auditing Journal, In Press.
[50] Wahid, A. S. (2018). The Effects and the Mechanisms of Board Gender Diversity: Evidence from Financial Manipulation, Journal of Business Ethics, https://doi.org/10.1007/s10551-018-3785-6.
[51] Zahra, S.A., & Pearce, J.A. (1989). “Boards of directors and corporate Financial Performance”, A Review and Interactive Model, Journal of Management, 15, (2), PP 291-334
)