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Female board members, financial constraints, and internal control quality: New insights following COSO's 2013 framework

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  • Ebaya, Ahmad
  • Qin, Xuezhi
  • Elsayed, Mohamed

Abstract

This paper utilizes unique data on internal control (IC) from China to investigate whether and how female representation on corporate boards affects IC quality in the post-COSO 2013 era. We find that female board members enhance the quality of the IC system, especially the information & communication and monitoring components. We also find that reducing financial constraints serves as a mechanism through which this beneficial effect operates. These findings are novel and are expected to have profound practical and policy implications.

Suggested Citation

  • Ebaya, Ahmad & Qin, Xuezhi & Elsayed, Mohamed, 2024. "Female board members, financial constraints, and internal control quality: New insights following COSO's 2013 framework," Economics Letters, Elsevier, vol. 234(C).
    • Handle: RePEc:eee:ecolet:v:234:y:2024:i:c:s016517652300472x
    DOI: 10.1016/j.econlet.2023.111446
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    References listed on IDEAS

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