ScienceDirect Publication: Finance Research Letters
Sat, 12 Oct 2019 12:01:36 GMT language
Publication date: Available online 11 October 2019
Source: Finance Research Letters
Author(s): Li Xiaochong, Li Yanxi
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.