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Female independent directors and financial irregularities in chinese listed firms: From the perspective of audit committee chairpersons

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  • Li, Xiaochong
  • Li, Yanxi

Abstract

This paper investigates the impact of female chairpersons of audit committee on financial irregularities of Chinese listed firms, and tests the influence of tenure and organizational decision-making environment on these two factors. The results show female chairpersons are more inclined than male chairpersons to reduce financial irregularities. In addition, we find that female chairpersons are more capable to reduce financial irregularities than male chairpersons in two circumstances: increased tenure and open organization decision-making environment. Finally, we find that, by reducing financial irregularities, female chairpersons can further improve financial report quality including internal control quality and external auditor opinion.

Suggested Citation

  • Li, Xiaochong & Li, Yanxi, 2020. "Female independent directors and financial irregularities in chinese listed firms: From the perspective of audit committee chairpersons," Finance Research Letters, Elsevier, vol. 32(C).
    • Handle: RePEc:eee:finlet:v:32:y:2020:i:c:s1544612318305051
    DOI: 10.1016/j.frl.2019.101320
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    4. Khan, Mushtaq Hussain & Fraz, Ahmad & Hassan, Arshad & Abedifar, Pejman, 2020. "Female board representation, risk-taking and performance: Evidence from dual banking systems," Finance Research Letters, Elsevier, vol. 37(C).
    5. Ali Amin & Ramiz ur Rehman & Rizwan Ali & Ridzwana Mohd Said, 2022. "Corporate Governance and Capital Structure: Moderating Effect of Gender Diversity," SAGE Open, , vol. 12(1), pages 21582440221, March.
    6. Belal Ali Ghaleb & Sumaia Ayesh Qaderi & Adel Ali Al‐Qadasi, 2024. "Independent female directors and integrated reporting quality: The moderating role of family ownership," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 3429-3443, July.
    7. Hongyan Geng & Maoyong Cheng & Junrui Zhang, 2021. "Effects of wealth management products on bank risk in China: The role of audit committee effectiveness," Pacific Economic Review, Wiley Blackwell, vol. 26(5), pages 575-616, December.
    8. Esra Atabay & Engin Boztepe, 2020. "The Effect of Gender Mainstreaming on Income of Turkish Independent Audit Organizations within the Scope of Sustainable Development," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 111-127.
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