Gender Diversity of Audit Committees and Audit Fees: Evidence from Chinese Listed Companies

Abstract

This paper investigates whether women, who serve on the audit committee of the board, can have a significant impact in reducing audit fees paid by China's A-share listed companies during the period 2004 to 2007. We show that audit committees composed of both men and ISSN 1946-052X 2015 ajfa.macrothink.org 240 women pay significantly smaller audit fees. The relationship is significantly greater in non-state enterprises than that exhibited by state-owned enterprises and significantly greater in companies deemed to have weak management vis-à-vis strong management. Further analysis shows that the composition of the committee is irrelevant when management is strong, regardless of whether it provides guidance for a state-owned enterprise or a strictly public company. When management is deemed weak, however, gender diversity is associated with smaller fees. Asian Journal of Finance & Accounting

Does gender diversity in the audit committee influence key audit matters' readability in the audit report? UK evidence

“…Aldamen et al, 2016;Ittonen et al, 2010;Xiang & Chengdu, 2015). Aldamen et al, 2016;Ittonen et al, 2010;Xiang & Chengdu, 2015).…”

“…Regarding board composition, some studies shed light on the impact of female members on the board or audit committee and audit quality (e.g. Aldamen et al, 2016;Ittonen et al, 2010;Xiang & Chengdu, 2015). Recent empirical-quantitative research has not focused on the determinants of KAM disclosures, like the link between WOAC and auditor reporting.…”

“…Additionally, a few archival studies concentrate on audit fees and analyze whether female members on the board or audit committee have a positive or negative impact on the range of audit fees (e.g. Aldamen, Hollindale, & Ziegelmayer, 2016;Ittonen, Miettinen, & Vähämaa, 2010;Xiang & Chengdu, 2015).…”

“…Since no current study reflects possible corporate governance variables as determinants of KAM disclosures, we see a major gap in empirical gender diversity research. Aldamen, Hollindale, & Ziegelmayer, 2016;Ittonen, Miettinen, & Vähämaa, 2010;Xiang & Chengdu, 2015). Ali, Frynas, & Mahmood, 2017;Cucari, DeFalco, & Orlando, 2017;Frias-Aceituno, Rodriguez-Ariza, & Garcia-Sanchez, 2013).…”

Audit Committee Effectiveness and Audit Fee among Listed Deposit Money Banks in Nigeria

“…Based on the previous empirical studies reviewed, it could be deduced that there are few studies [46][47][48]24,13] and [15] on the effect of audit committee gender diversity on audit fee and reported divergence results. For instance, the studies of [46,47] and [13] found that the presence of female members on the audit committee team improved the effectiveness of internal control activities, reducing the inherent risk of misstatement as well as reducing the auditor's assessment of audit risk and audit effort, thereby reducing audit fees.…”