Effects of other comprehensive income on audit fees and audit report lag in Egyptian firms: does board gender diversity matter?

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tariq H. Ismail ◽  
Karim Mansour ◽  
Emad Sayed
Keyword(s):  
Gender Diversity ◽  
Audit Fees ◽  
Equation Model ◽  
Small Sample ◽  
Audit Report ◽  
Content Type ◽  
Comprehensive Income ◽  
Other Comprehensive Income ◽  
Board Gender Diversity ◽  
The Relationship

PurposeThis paper aims to (1) investigate the effect of other comprehensive income (OCI) on audit fees (AF) and audit report lag (ARL) and (2) test the moderating effect of board gender diversity (BGD) on such relationships.Design/methodology/approachThis paper uses data extracted from the financial reports for a sample of Egyptian firms from 2013 to 2019, where the data are processed using the Panel Corrected Standards Errors (PCSE) and the Structure Equation Model (SEM).FindingsThe results reveal that (1) the OCI existence and OCI volume have a significant positive effect on AF and ARL, and (2) the presence of female directors on the board and the percentage of female representation affect the relationship between OCI and AF positively, but this effect on the relationship between OCI and ARL is insignificant.Research limitations/implicationsThis paper has some limitations, where the analysis uses a small sample of Egyptian listed firms, as well as, the measures that were used as proxies of the study variables, which do not necessarily express the most suitable ones.Practical implicationsThe results of this paper would (1) provide signals to the audit market, the professional bodies in Egypt and stakeholders about the determinants of AF and ARL, (2) provide guidelines that support the capital market authority to consider gender diversity in boards of companies taking into considerations its impact on AF and ARL, and (3) help the accounting setters in emerging economies as Egypt in drafting more suitable standards and guidelines regarding OCI.Originality/valueThis paper adds to the literature on OCI, where it investigates the effect of OCI on ARL, which was not yet studied in prior studies. Also, this paper complements and extends the literature by providing empirical evidence from one of the emerging markets as Egypt about the effect of BGD on the relationships between OCI, AF and ARL, as these relationships have not been examined before.

Do women on corporate boardrooms influence remuneration patterns and socially responsible practices? Malaysian evidence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sitara Karim
Keyword(s):  
Generalized Method Of Moments ◽  
Gender Diversity ◽  
Executive Directors ◽  
Women Directors ◽  
Socially Responsible ◽  
Content Type ◽  
Upper Echelons Theory ◽  
Board Gender Diversity ◽  
The Relationship ◽  
Practical Implications

PurposeThe prime objective of this study is to investigate the moderating influence of executive and independent female directors on the relationship between remuneration packages (CEO and executive director) and socially responsible practices (marketplace, environment, community, workplace and money spent on CSR) of 483 Malaysian listed firms during 2006–2017.Design/methodology/approachThe dynamic estimator, namely, system generalized method of moments (GMM) given by Blundell and Bond (1998) has been employed on the dataset to control dynamic endogeneity, unobserved heterogeneity and simultaneity problems.FindingsFindings indicate that there is a significant relationship between remuneration patterns of CEOs and executive directors and socially responsible activities. In the same way, executive board gender diversity significantly, whereas independent board gender diversity insignificantly moderates the remuneration and CSR nexus.Practical implicationsThis study is particularly significant for regulatory bodies of Malaysia, e.g. Securities Commission Malaysia, Bursa Malaysia, policy makers, investors and managers. For academia, this study fetches support from agency theory, stakeholder theory and upper echelons theory and presents integrated theoretical approach to be considered for future research.Originality/valueThis paper is unique in providing empirical evidence on the moderating effect of both executive and independent women directors on the relationship between remuneration patterns of CEOs and executive directors and independent CSR activities for the first time. Moreover, this study has sourced several theoretical and practical implications. And, the study employs dynamic estimator for precise and concrete results.

Board characteristics, auditing characteristics and audit report lag in African Central Banks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Henry Chalu
Keyword(s):  
Audit Committee ◽  
Audit Quality ◽  
Gender Diversity ◽  
Central Banks ◽  
Audit Report ◽  
Content Type ◽  
Independent Variables ◽  
Board Characteristics ◽  
Mediating Variables ◽  
Board Gender Diversity

PurposeThe purpose of this paper is to examine the determinants of audit report lag in Sub-Saharan African Central Banks. In this case, the determinants were divided into two categories: independent variables and mediating variables. The independent variables, which were generated from board characteristics, included board size, board gender diversity, governor duality, audit committee size and audit committee meetings. The mediating variables were auditing characteristics and they comprised audit mandate, audit approach and audit quality.Design/methodology/approachThe study used data from 192 observations from African Central Banks' financial reports for the period 2000–2016. The data collected were analyzed using path analysis, whereby four regression models were run and tested simultaneously. From the analysis, the study determined total effects and then decomposed the total effects into direct and indirect effects.FindingsThe study results indicate that in the case of board characteristics, governor duality and audit committee size were found to have a positive influence on audit report lag. In the case of audit quality, only audit mandate was found to have a negative influence on audit quality in the Central Banks. However, the introduction of mediating variables increased the positive effect of governor duality and audit committee size, while also making board size and board gender diversity have a significant negative effect on audit report lag.Practical implicationsThe findings of this paper have implications for the practice and policy of the auditing and governance of Central Banks, which includes designing appropriate governance structures as well as proper auditing strategies.Originality/valueThis is the first study which has examined factors influencing audit report lag in Central Banks. Previous studies on Central Banks' governance have examined the independence and autonomy of the Central Banks, as well as their accounting. This paper extends prior studies by examining the effects of those factors. Another contribution is the study's application of auditing characteristics as mediating variables.

Business ethics disclosure and corporate governance in Sub-Saharan Africa (SSA)

2020 ◽  
Vol 28 (2) ◽  
pp. 363-387 ◽  
Author(s):  
Nelson Waweru
Keyword(s):  
Corporate Governance ◽  
Business Ethics ◽  
Gender Diversity ◽  
Sub Saharan Africa ◽  
Stock Exchanges ◽  
Government Ownership ◽  
Content Type ◽  
Sub Saharan ◽  
Board Gender Diversity ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between business ethics practices disclosure and corporate governance characteristics in Sub-Saharan Africa. Design/methodology/approach The study uses multiple regression to investigate the association between business ethics disclosure (BED) and corporate governance characteristics in SAA. The study sample is based on 573 non-financial corporations listed on the national stock exchanges of Ghana, Kenya, Nigeria, South Africa and Zimbabwe as of 31 December 2015. Findings The findings show that corporate governance characteristics (including the proportion of government ownership, board independence and board gender diversity) are positively and significantly related to BED. Originality/value The study contributes to the limited literature by analyzing the relationship between BED practices and corporate governance characteristics in the sub-Sahara African context, which is significantly different from the Anglo-Saxon world.

What drives the impact of women directors on firm performance? Evidence from intellectual capital efficiency of US listed firms

2019 ◽  
Vol 21 (4) ◽  
pp. 513-530 ◽  
Author(s):  
Faisal Shahzad ◽  
Mushahid Hussain Baig ◽  
Ijaz Ur Rehman ◽  
Fawad Latif ◽  
Bruno S. Sergi
Keyword(s):  
Intellectual Capital ◽  
Gender Diversity ◽  
Performance Measure ◽  
Women Directors ◽  
Firm Level ◽  
Content Type ◽  
Capital Efficiency ◽  
Board Gender Diversity ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to study whether the presence of women directors on the corporate board influences financial performance (FP). To examine the underlying causal mechanism, the authors modeled firm-level intellectual capital efficiency (ICE) in the relationshipbetween board gender diversity (BGD) and FP. Design/methodology/approach Using a sample of 5,879 US firms, a structural model of BGD, IC and FP is conceptualized by accounting for the endogeneity issues and alternative measures of the key variables in the empirical framework. In the model, the percentage of women directors is taken as BGD measures and value-added intellectual coefficient as an IC performance measure, considering governance and corporate performance measures. Findings The authors find a significant impact of BGD on FP. In particular, the results suggest: BGD is linked to IC; the influence of board gender diversity on the FP is indirect; and ICE fully mediates the relationship between BGD and FP. Originality/value To the best of the author’s knowledge, no study has empirically investigated whether the firm-level IC performance explains the influence of BGD on FP. Drawing on the resource-based view and organizational learning theory of the firm, the authors empirically modeled the relationship between BGD and FP through a mediation mechanism of firm-level ICE to fill the void in the literature.

Female representation on the board of directors and accrual quality within the context of cultural dimensions and accounting values

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asma Yousuf ◽  
Husam Aldamen
Keyword(s):  
National Culture ◽  
Earnings Quality ◽  
Gender Diversity ◽  
Cultural Dimensions ◽  
Female Representation ◽  
Content Type ◽  
Accruals Quality ◽  
Board Gender Diversity ◽  
Gender Quota ◽  
The Relationship

Purpose This study aims to bridge the gap in the scarce and inconclusive literature concerning the impact of gender diversity on earnings quality by positioning this relationship within an institutional context. It aims to investigate the moderating effect of different cultural dimensions and accounting values on the relationship between board gender diversity and earnings quality. Design/methodology/approach The study uses an international sample from 46 countries (3,092 public firms) for the year 2017. A two-level hierarchical linear regression model is used to test the moderating effect of Hofstede’s cultural dimensions and Gray’s accounting values on diversity and accruals quality relationship. Findings The findings suggest a positive relationship between board gender diversity and earnings quality. Results hold valid after controlling for endogeneity effect. More importantly, regarding national culture, results indicate that power distance, individualism, uncertainty avoidance, professionalism, uniformity, secrecy and conservatism moderate the relationship between female directors and accruals quality. Furthermore, different levels of female representation are essential on boards of different societies to use the benefits of gender-diversified boards in enhancing earnings quality. Research limitations/implications The study provides empirical evidence on the effectiveness of various worldwide movements toward increasing board gender diversity. Additionally, the results speak directly to gender quota regulatory bodies suggesting that “no size fits all” for gender quota requirement. Originality/value The study contributes to the stream of literature concerning gender diversity and earnings quality by investigating this relationship through the lens of national culture and emphasizing the importance of considering institutional factors in examining social interactions.

The effect of board gender diversity on firm performance: evidence from Turkey

2016 ◽  
Vol 31 (7) ◽  
pp. 434-455 ◽  
Author(s):  
Merve Kılıç ◽  
Cemil Kuzey
Keyword(s):  
Firm Performance ◽  
Financial Performance ◽  
Empirical Studies ◽  
Gender Diversity ◽  
Content Type ◽  
Return On Equity ◽  
Firm Financial Performance ◽  
Board Gender Diversity ◽  
Return On Sales ◽  
The Relationship

Purpose This study aims to include two primary goals. First to determine the board characteristics of listed companies in Turkey and second to investigate the effect of board gender diversity on the performance of these companies. Design/methodology/approach This study uses an instrumental variables regression analysis to investigate the relationship between board gender diversity and firm performance using the data from 2008-2012 of the entities listed on the Borsa Istanbul. Findings The results indicate that the boards of these companies in Turkey are male-dominated. Moreover, this study shows that the inclusion of female directors is positively related to the financial performance of firms, as measured by the return on assets, the return on equity and the return on sales. Originality/value Limited empirical studies have been conducted on the relationship between board gender diversity and firm performance in emerging economies. Therefore, there is still no consensus regarding the link between board gender diversity and firm financial performance based upon the mixed and sometimes contradictory results in prior research. Therefore, this study extends the current literature in the context of Turkey, showing that a female member on the board can enhance the financial performance of a company.

Gender diversity influence on board effectiveness and business performance

2020 ◽  
Vol 20 (2) ◽  
pp. 307-323 ◽  
Author(s):  
Rocio Martinez-Jimenez ◽  
María Jesús Hernández-Ortiz ◽  
Ana Isabel Cabrera Fernández
Keyword(s):  
Firm Performance ◽  
Boards Of Directors ◽  
Business Performance ◽  
Gender Diversity ◽  
Small Sample ◽  
Board Effectiveness ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

Purpose The purpose of this paper is to analyze the mediating role of board effectiveness (understood as the capacity to efficiently manage and control all functions to guarantee the company’s prosperity) in the relationship between board diversity and firm performance. Design/methodology/approach The authors use partial least squares methodology to test the direct and indirect relationships between gender diversity in boards of directors and business performance. Findings Although the relationship between the presence of women on the board and the board’s effectiveness is statistically significant, this relationship is negative. However, board effectiveness (measured by the three constructs: strategic control, organizational innovation and decision-making) has a positive and statistically significant effect on business performance. Finally, there is a positive, but not statistically significant, relationship between gender diversity and firm performance. Research limitations/implications The study has a small sample size, and most of the boards of directors analyzed are unequal with only a few companies achieving gender parity. Social implications Public institutions must promote actions to achieve a critical mass of women directors and managers, so that women transcend a merely “symbolic” role on a board and are able to develop their skills and characteristics, thereby improving a board’s effectiveness and business performance. Originality/value This paper makes a theoretical contribution to the diversity and governance literature by providing a better understanding of the relationship between board gender diversity and firm performance. It considers the influence of women on the board through a holistic framework, analyzing the mediating role of the board’s effectiveness.

Gender diversity in audit committees and audit fees: evidence from China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Radwan Hussien Alkebsee ◽  
Gao-Liang Tian ◽  
Muhammad Usman ◽  
Muhammad Abubakkar Siddique ◽  
Adeeb A. Alhebry
Keyword(s):  
Audit Committee ◽  
Gender Diversity ◽  
Audit Fees ◽  
Situational Factors ◽  
Audit Committees ◽  
Least Squares Regression ◽  
Content Type ◽  
External Auditors ◽  
Female Directors ◽  
The Relationship

Purpose This study aims to investigate whether the presence of female directors on audit committees affects audit fees in Chinese listed companies. This study also investigates whether the audit committee’s gender diversity moderates the relationship between the firm’s inherent situational factors (e.g. audit complexity and firm risk) and audit fees. Finally, this study investigates whether the effect of the audit committee’s gender diversity on audit fees varies with within-country institutional contingencies (e.g. state-owned enterprises [SOEs] vs non-SOEs and firms that are located in more developed regions vs firms that are located in less developed regions) Design/methodology/approach This study used the data of all A-share listed companies on the Shanghai and Shenzhen stock exchanges for the period from 2009 to 2015. The authors use ordinary least squares regression as a baseline methodology, along with firm fixed effect, Deference in Deference method, two-stage least squares regression, two-stage Heckman model and generalized method of moments models to control for the possible issue of endogeneity. Findings The study’s findings suggest that the presence of female directors on the audit committee improves internal monitoring and communication, which reduce the perceived audit risk and the need for assurances from external auditors. The results also suggest that female directors demand high-quality audits and further assurance from external auditors when the firm is more complex and riskier. In addition, the results suggest that within-country, institutional factors play significant role in shaping the governance role of gender-diverse audit committee. Practical implications The study contributes to the agency theory by providing evidence that the interaction between agency theory and corporate governance “board composition” generates an effective monitoring mechanism and contributing to the institutional theory by finding that role of female directors on audit committee varies from context to another. In addition, this study contributes to literature review of gender diversity in the boardroom by finding the economic benefit of having female directors on audit committee. Finally, this study has implications for policy-makers in promoting regulations to legalize women presence on the board, to external auditors in assessing control risk during planning the audit, to those who responsible for appointing audit committee members. Originality/value The authors extend earlier studies by providing novel evidence on the relationship between gender-diverse audit committees and audit fees in terms of both the supply- and demand-side perspectives; that female directors moderate the relationship between firm inherent situational factors (e.g. audit complexity and firm risk) and audit fees; and that the effect of audit committees’ gender diversity on audit fees varies with sub-national institutional contingencies.

Do women in board represent less corporate tax avoidance? A moderation analysis

2019 ◽  
Vol 40 (1/2) ◽  
pp. 114-132
Author(s):  
Rakia Riguen ◽  
Bassem Salhi ◽  
Anis Jarboui
Keyword(s):  
Audit Quality ◽  
Gender Diversity ◽  
Percent Level ◽  
Tax Avoidance ◽  
Audit Fees ◽  
Corporate Tax ◽  
Content Type ◽  
Negative Effect ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to empirically examine how women in board represent moderates the relationship between audit quality and corporate tax avoidance. Design/methodology/approach The study is based on a sample consisting of 270 UK firms over the 2005–2017 period. This study is motivated by moderating regression analysis. Findings The results show that audit quality influences the corporate tax avoidance. Audit quality measured by two proxies audit specialization and audit fees has a negative effect on corporate tax avoidance. Board gender diversity “BGD” moderates the relationship between audit quality and tax avoidance. The impact of the BGD level increases as the presence of woman in the board escalated from 40 to 60 percent but, then, weakens at 10 percent level. Practical implications The findings may be of interest to the academic researchers, practitioners and regulators who are interested in discovering relation between audit quality and tax avoidance with the presence of woman in the board. This study should be of interest to tax policymakers concerned about declining corporate tax revenues. Originality/value This paper extends the existing literature by examining the moderating effect of BGD on the relation between audit quality and corporate tax avoidance using the sensitivity analysis.

Corporate social responsibility and board gender diversity: a meta-analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qichun Wu ◽  
Fumitaka Furuoka ◽  
Shu Chui Lau
Keyword(s):  
Meta Analysis ◽  
Gender Diversity ◽  
Geographical Location ◽  
Geographic Location ◽  
Future Research ◽  
Content Type ◽  
Empirical Results ◽  
Gender Parity ◽  
Board Gender Diversity ◽  
The Relationship

Purpose The importance of board composition, especially female directors’ presence on boards, is thought to influence corporate responsibility performance, has attracted significant scholarly interest. This study aims to examine how board gender diversity (BGD) affects corporate social responsibility (CSR) performance and the moderating factors that influence the relationship. There is a lack of research on the moderating indicators (variable measurement, geographic location, data sets and gender parity score) that impact the BGD and CSR relationship. Design/methodology/approach This study uses content analysis and meta-analysis to combine the findings of 44 selected papers published from 2010 to 2019, comprehensively reviewing the academic literature on gender diversity in the board composition. Independent and dependent variables are classified based on the variable measurement; this study examines the moderator indicators, such as geographical location, research data sets and gender parity score to investigate the BGD and CSR relationship. Findings The findings indicated a significant positive relationship between BGD and CSR performance. The meta-method results showed that the measurements of BGD and CSR limited to impact on the relationship. But a significant moderating effect of the geographical location on the BGD-CSR relationship, the BGD-CSR relationship would be stronger in the firms located in North America than firms located in Asia and other areas. Empirical results also showed a significant moderating effect of gender parity score. There would be stronger BGD-CSR relations in the firms located in the countries with higher gender parity score than the firms located in the countries with low gender parity score. This means the female status is an essential indicator of moderating the BGD-CSR relationship. Research limitations/implications The main shortcoming is a lack of sufficient articles on the BGD-CSR relationship. In a future study, researchers may use other databases, such as Google scholar or Ebscohost, to increase the number of relevant articles. These studies would offer new insight into the meta-analysis of the relationship between the BGD and CSR. Finally, the authors identify the potential trend in future research, future research on BGD will need for standardized metrics. The Geographic location is an important indicator that will influence the female director role in CSR. A systematic measure and data of gender research are more important for study in this field. Practical implications Meta-analysis is conducted on the independent and dependent variables to examine the causality between BGD and CSR performance, which could better explore diversity among different countries’ boards and, more generally, to investigate the degree to which diversity may influence CSR. Firms may try to balance the BGD to improve future development prospects. Specifically, the results of this study have important implications for corporate governance and policymakers. Social implications First, this systematic study uses meta-analysis to combine the findings of previous research on the BGD-CSR. The current research attempts to incorporate mixed empirical results based on the different variable measurements. Second, this study develop and test a contingency model of female on boards and CSR that considers uses the geographic location factors that may enhance or diminish the influence of female on boards on CSR. Specifically, the authors examine whether and under what conditions, boards with more female directors differ for inter-country heterogeneity to which they engage in monitoring roles and are involved with strategy management. Originality/value First, this study could be the first systematic study that uses the meta-analysis to combine previous research findings on the BGD-CSR. Second, the current research attempts to incorporate mixed empirical results based on the different variable measurements. Third, this study uses the “gender parity score” to account for inter-country heterogeneity in the BGD-CSR relationship. This study also identifies the potential trend in future research.

Sign in / Sign up

Export Citation Format

Share Document