Gender Diversity in Audit Committees and Firm Performance: Insights from a Developing Economy-Journal of Sustainability Research-CSCIED科技核心评价数据库-手机版

Gender Diversity in Audit Committees and Firm Performance: Insights from a Developing Economy

Gender Diversity in Audit Committees and Firm Performance: Insights from a Developing Economy

ES评分 0 浏览量：153 下载量：0

DOI	10.20900/jsr20250065
刊名	Journal of Sustainability Research JSR
年，卷(期)	2025, 7(4)
作者	Zabihollah Rezaee*,Ghodratollah Haidarinezhad,
作者单位	Crews School of Accountancy, Fogelman College of Business and Economics, The University of Memphis, Memphis, TN 38152, USA ; Department of Accounting, Payame Noor University, Tehran PO BOX 19395-3697, Iran ;
摘要	Purpose: This study investigates the relationship between gender diversity in audit committees and the financial performance of firms in Iran, a developing economy characterized by a weak corporate governance structure and notable gender disparities. Design/Methodology/Approach: Utilizing a dataset of 1058 firm-year observations from Tehran Stock Exchange (TSE)-listed firms between 2013 and 2019, this study examines the impact of female representation in audit committees on both financial and market performance. Findings: The results reveal that the presence of at least one woman on an audit committee positively influences firms’ financial and market performance. These findings remain robust after addressing potential endogeneity concerns. Practical Implications: The study offers valuable insights for policymakers and regulators, highlighting the role of gender diversity in strengthening corporate governance and enhancing financial performance. Originality/Value: By examining the effects of gender diversity in audit committees within a developing-country context, this study contributes to the literature by shedding light on an under-researched area.
Abstract	Purpose: This study investigates the relationship between gender diversity in audit committees and the financial performance of firms in Iran, a developing economy characterized by a weak corporate governance structure and notable gender disparities. Design/Methodology/Approach: Utilizing a dataset of 1058 firm-year observations from Tehran Stock Exchange (TSE)-listed firms between 2013 and 2019, this study examines the impact of female representation in audit committees on both financial and market performance. Findings: The results reveal that the presence of at least one woman on an audit committee positively influences firms’ financial and market performance. These findings remain robust after addressing potential endogeneity concerns. Practical Implications: The study offers valuable insights for policymakers and regulators, highlighting the role of gender diversity in strengthening corporate governance and enhancing financial performance. Originality/Value: By examining the effects of gender diversity in audit committees within a developing-country context, this study contributes to the literature by shedding light on an under-researched area.
关键词	gender diversity; audit committee; tokenism; financial performance; corporate governance
KeyWord	gender diversity; audit committee; tokenism; financial performance; corporate governance
基金项目
页码	-

参考文献
相关文献

1.Deloitte. Women in the boardroom: A global perspective. 8th ed. London (UK): Deloitte Global; 2024.
2.Brown S, Kelan E. Gender and corporate boards: The route to a seat at the table. London (UK): Routledge; 2020.
3.Reddy S, Jadhav AM. Gender diversity in boardrooms—A literature review. Cogent Econ Finance. 2019;7(1):1644703.
4.Liu Y, Wei Z, Xie F. Do women directors improve firm performance in China? J Corp Financ. 2014;28(5):169-84. doi: 10.1016/j.jcorpfin.2013.11.016.
5.Brahma S, Nwafor C, Boateng A. Board gender diversity and firm performance: The UK evidence. Int J Finance Econ. 2021;26(4):5704-19.
6.Green CP, Homroy S. Female directors, board committees, and firm performance. Eur Econ Rev. 2018;102:19-38. doi: 10.1016/j.euroecorev.2017.12.003.
7.Terjesen S, Aguilera RV, Lorenz R. Legislating a woman’s seat on the board: Institutional factors driving gender quotas for boards of directors. J Bus Ethics. 2014;128(2):233-51. doi: 10.1007/s10551-014-2083-1.
8.Adams RB. Women on boards: The superheroes of tomorrow? Leadersh Q. 2016;27(3):371-86. doi: 10.1016/j.leaqua.2015.11.001.
9.Carter DA, Simkins BJ, Simpson WG. Corporate governance, board diversity, and firm value. Financ Rev. 2003;38(1):33-53.
10.Campbell K, Minguez-Vera A. Gender diversity in the boardroom and firm financial performance. J Bus Ethics. 2008;83(3):435-51. doi: 10.1007/s10551-007-9630-y.
11.Reguera-Alvarado N, de Fuentes P, Laffarga J. Does board gender diversity influence financial performance? Evidence from Spain. J Bus Ethics. 2017;141(2):337-50. doi: 10.1007/s10551-015-2735-9.
12.Arora A. Gender diversity in boardroom and its impact on firm performance. J Manag Gov. 2022;26(3):735-55. doi: 10.1007/s10997-021-09573-x.
13.Rahman HU, Zahid M, Al-Faryan MAS. Boardroom gender diversity and firm performance: From the lens of voluntary regulations, tokenism and critical mass. Total Qual Manag Bus Excell. 2022;34(3-4):345-63. doi: 10.1080/14783363.2022.2056439.
14.Rose C. Does female board representation influence firm performance? The Danish evidence. Corp Gov Int Rev. 2007;15(2):404-13. doi: 10.1111/j.1467-8683.2007.00570.x.
15.Carter DA, D’Souza F, Simkins BJ, Simpson WG. The gender and ethnic diversity of US boards and board committees and firm financial performance. Corp Gov Int Rev. 2010;18(5):396-414. doi: 10.1111/j.1467-8683.2010.00809.x.
16.Marquez-Cardenas V, Gonzalez-Ruiz JD, Duque-Grisales E. Board gender diversity and firm performance: Evidence from Latin America. J Sustain Finance Invest. 2022;12(3):785-808. doi: 10.1080/20430795.2021.2017256.
17.Darmadi S. Board diversity and firm performance: The Indonesian evidence. Corp Ownership Control. 2011;9(1):524-39.
18.Joecks J, Pull K, Vetter K. Gender diversity in the boardroom and firm performance: What exactly constitutes a “critical mass”? J Bus Ethics. 2013;118:61-72. doi: 10.1007/s10551-012-1553-6.
19.Kabir A, Ikra SS, Saona P, Azad MAK. Board gender diversity and firm performance: New evidence from cultural diversity in the boardroom. LBS J Manag Res. 2023;21(1):1-12. doi: 10.1108/LBSJMR-06-2022-0022.
20.Adams RB, Ferreira D. Women in the boardroom and their impact on governance and performance. J Financ Econ. 2009;94(2):291-309. doi: 10.1016/j.jfineco.2008.10.007.
21.Terjesen S, Couto EB, Francisco PM. Does the presence of independent and female directors impact firm performance? A multi-country study of board diversity. J Manag Gov. 2016;20(3):447-83. doi: 10.1007/s10997-014-9307-8.
22.Greene D, Intintoli VJ, Kahle KM. Do board gender quotas affect firm value? Evidence from California Senate Bill No. 826. J Corp Finance. 2020;60:101526.
23.Torchia M, Calabrò A, Huse M. Women directors on corporate boards: From tokenism to critical mass. J Bus Ethics. 2011;102(2):299-317. doi: 10.1007/s10551-011-0815-z.
24.Chijoke-Mgbame AM, Boateng A, Mgbame CHO. Board gender diversity, audit committee and financial performance: Evidence from Nigeria. Account Forum. 2020;44(3):262-86. doi: 10.1080/01559982.2020.1766280.
25.Jana Dele A, Pouya Z. Obstacles to career advancement of women in Iran: Role requirements or structural limitations. Soc Sci Q. 2019;26(84):1-34.
26.Mahmodiyan S. An examination of the barriers to women’s participating in managerial levels of education organization in Iran. Edu Dev Jundi. 2016;7:20-5.
27.Ahmadi Kohnali R, Behboodi MR, Jamjour T. Barriers to women’s access to managerial positions from the perspective of female managers: A qualitative study in Bandar Abbas. Wom Dev & Pol. 2013;11(3):333-49.
28.Asadi Zeidabadi P, Aghtaie N. The perspectives of Iranian feminists and women activists on gender equality in Iran. Br J Middle East Stud. 2025;52(1):20-37.
29.Aqababaee E, Razaghi M. Islamic fundamentalism and gender: the portrayal of women in Iranian movies. Crit Res Relig. 2022;10(3):249-66.
30.Abdul Vahabi M, Roshanaee AA, Jamlie Ashtiani H. Investigating the challenges facing women employment from the perspective of Islam and liberalism. Pol Stud Qtrly. 2019;12(46):101-20.
31.Shaygun SA. Civil codes. 1st ed. Tehran (Iran): Kalameh publication; 2017.
32.Hedayat Nia F. Women employment and family in the civil code. Women’s Strat Stud. 2006;46:734.
33.World Economic Forum. Global Gender Gap Report 2024. Geneva (Switzerland): WEF; 2024.
34.World Bank. Proportion of Women in Senior and Middle Management (% of total management). 2022. Available from: https://genderdata.worldbank.org. Accessed on 20 Jan. 2025.
35.International Labour Organization. Labour Force Participation Rate, Female (% of female population ages 15+). 2023. Available from: https://ilostat.ilo.org. Accessed on 20 Jan. 2025.
36.Corporate Governance Guidelines for publishers admitted to TSE and Iran OSE (version before December 2022 amendment). Tehran (Iran): Securities and Exchange Organization; 2019. Available from: https://www.seo.ir Accessed on 15 Mar 2022.
37.Kazempour M, Kashanipour M, Yazdifar H, Hamidizadeh A. Explaining the mutual relationship between board gender diversity and corporate social responsibility using the simultaneous equations system. Int J Finance Manag Account. 2018;3(11):1-10.
38.Kanter RM. Some effects of proportions on group life: Skewed sex ratios and responses to token women. Am J Sociol. 1977;82(5):965-90. doi: 10.1086/226425.
39.Oradi J, Izadi J. Audit committee gender diversity and financial reporting: Evidence from restatements. Manag Audit J. 2019;35(1):67-92. doi: 10.1108/MAJ-10-2018-2048.
40.Oradi J, E-Vahdati S. Female directors on audit committees, the gender of financial experts, and internal control weaknesses: Evidence from Iran. Account Forum. 2021;45(3):273-306. doi: 10.1080/01559982.2021.1920127.
41.Konrad AM, Kramer VW. How many women do boards need? Harv Bus Rev. 2006;84(12):22.
42.Dawson L. Ethical difference between men and women in the sales profession. J Bus Ethics. 1997;16(11):1143-52.
43.Niederle M, Vesterlund L. Do women shy away from competition? Do men compete too much? Q J Econ. 2007;122(3):1067-101. doi: 10.1162/qjec.122.3.1067.
44.Man CK, Wong B. Corporate governance and earnings management: A survey. J Appl Bus Res. 2013;29(2):391-418.
45.Huang J, Kisgen DJ. Gender and corporate finance: Are male executives overconfident relative to female executives? J Financ Econ. 2013;108(3):822-39. doi: 10.1016/j.jfineco.2012.12.005.
46.Pan Y, Sparks JR. Predictors, consequence, and measurement of ethical judgments: Review and meta-analysis. J Bus Res. 2012;65(1):84-91. doi: 10.1016/j.jbusres.2011.02.002.
47.Wood W, Polek D, Aiken C. Sex differences in group task performance. J Pers Soc Psychol. 1985;48(1):63-71. doi: 10.1037/0022-3514.48.1.63.
48.Kaplan S, Pany K, Samuels J, Zhang J. An examination of the association between gender and reporting intentions for fraudulent financial reporting. J Bus Ethics. 2009;87(1):15-30. doi: 10.1007/s10551-008-9866-1.
49.Anderson RC, Reeb DM, Upadhyay A, Zhao W. The economics of director heterogeneity. Financ Manag. 2011;40(1):5-38.
50.Foroutan Y. Representation of women’s employment in the textbooks of Iranian schools. Women Dey Polit. 2011;9(2):39-80.
51.Beyraghi N, Soklaridis S. Toward an understanding of the gender gap in Iran: Why health leaders should care and what they can do to close the gender gap? Iranian J Psychiatry Behav Sci. 2019;13(1):e64643.
52.Hofstede Insights. Available from: www.hofstedeinsights.com. Accessed on: 15 Jun 2021
53.García-Sánchez IM, Frias-Aceituno JV, Garcia-Rubio R. Determining factors of audit committee attributes: Evidence from Spain. Int J Audit. 2012;16(2):184-213.
54.Siciliano JI. The relationship of board member diversity to organizational performance. J Bus Ethics. 1996;15:1313-20. doi: 10.1007/BF00411816.
55.Hillman AJ, Cannella AA, Paetzold RL. The resource dependence role of corporate directors: Strategic adaptation of board composition in response to environmental change. J Manag Stud. 2000;37(2):235-56.
56.Nadeem M, De Silva T, Gan C, Zaman R. Boardroom gender diversity and intellectual capital efficiency: Evidence from China. Pac Account Rev. 2017;29(4):590-615. doi: 10.1108/PAR-08-2016-0080.
57.Arioglu E. Female board members: The effect of director affiliation. Gend Manag. 2020;35(2):225-54. doi: 10.1108/GM-05-2019-0080.
58.Sultana N, Harjinder S, Vander Z. Audit committee characteristics and audit report lag. Int J Audit. 2015;19(2):72-87. doi: 10.1111/ijau.12033.
59.Brammer S, Millington A, Pavelin S. Gender and ethnic diversity among UK corporate boards. Corp Gov Int Rev. 2007;15(2):393-403. doi: 10.1111/j.1467-8683.2007.00569.x.
60.De Anca C, Gabaldon P. Female directors and the media: Stereotypes of board members. Gend Manag. 2014;29(6):334-51. doi: 10.1108/GM-07-2013-0079.
61.Hillman AJ. Board diversity: Beginning to unpeel the onion. Corp Gov Int Rev. 2015;23(2):104-7. doi: 10.1111/corg.12090.
62.Engin C, Pals H. Patriarchal attitudes in Turkey 1990–2011: The influence of religion and political conservatism. Soc Politics Int Stud Gender State Soc. 2018;25(3):383-409.
63.Agyei-Boapeah H, Machokoto M, Amankwah-Amoah J, Tunyi A, Fosu S. IFRS adoption and firm value: African evidence. In: Accounting Forum. New York (NY, USA): Routledge; 2020. p. 238-61. Vol 44, No 3.
64.Konrad AM, Kramer V, Erkut S. Critical mass: The impact of three or more women on corporate boards. Organ Dyn. 2008;37(2):145-64. doi: 10.1016/j.orgdyn.2008.02.005.
65.Omri NA, Alfaleh AM. The effects of boardroom gender diversity on corporate performance: Empirical evidence from a sample of European listed companies. Bus Econ. 2024;59:86-100. doi: 10.1057/s11369-024-00351-9.
66.Jayaraman JD, Smita R, Nilakantan N. The impact of board gender diversity on firm performance: does critical mass matter? J Appl Account Res. 2025;26(1):249-77. doi: 10.1108/JAAR-12-2022-0336.
67.Mashayekhi B, Bazaz MS. Corporate governance and firm performance in Iran. J Contemp Account Econ. 2008;4(2):156-72.
68.Bagherpour M, Monroe G, Shailer G. Government and managerial influence on auditor switching under partial privatization. J Account Public Policy. 2014;33(4):372-90. doi: 10.1016/j.jaccpubpol.2014.04.00.
69.Post C, Byron K. Women on boards and firm financial performance: A meta-analysis. Acad Manag J. 2015;58(5):1546-71. doi: 10.5465/amj.2013.0319.
70.Marinova J, Plantenga J, Remery C. Gender diversity and firm performance: Evidence from Dutch and Danish boardrooms. Int J Hum Resour Manag. 2016;27(15):1777-90. doi: 10.1080/09585192.2015.1079229.
71.Dale-Olsen H, Schøne P, Verner M. Diversity among Norwegian boards of directors: Does a quota for women improve firm performance? Fem Econ. 2013;19:110-35.
72.Isidro H, Sobral M. The effects of women on corporate boards on firm value, financial performance, and ethical and social compliance. J Bus Ethics. 2015;132(1):1-19.
73.Bohren O, Strom O. Governance and politics: Regulating independence and diversity in the boardroom. J Bus Finance Account. 2010;37(9-10):1281-308. doi: 10.1111/j.1468-5957.2010.02222.x.
74.Wellalage NH, Stuart L. Women on board, firm financial performance and agency costs. Asian J Bus Ethics. 2013;2:113-27. doi: 10.1007/s13520-012-0020-x.
75.Bennouri M, Chtioui T, Nagati H, Nekhili M. Female board directorship and firm performance: What really matters? J Bank Finance. 2018;88:267-91.
76.Adusei M, Akomea SY, Poku K. Board and management gender diversity and financial performance of microfinance institutions. Cogent Bus Manag. 2017;4(1):1-14.
77.Carrasco A, Francoeur C, Labelle R. Appointing women to boards: Is there a cultural bias? J Bus Ethics. 2015;129:429-44. doi: 10.1007/s10551-014-2166-z.
78.Gyapong E, Monem RM, Hu F. Do women and ethnic minority directors influence firm value? Evidence from post-apartheid South Africa. J Bus Finance Account. 2016;43(3-4):370-413.
79.Ararat M, Yurtoglu B. Female directors, board committees, and firm performance: Time-series evidence from Turkey. Emerg Mark Rev. 2021;48:100768. doi: 10.1016/j.ememar.2020.100768.
80.World Economic Forum. Global Gender Gap Report. 2022. Available from: https://www.weforum.org/publications/global-gender-gap-report-2022/. Accessed on 20 Jan 2025.
81.Naseri Jahromi R, Mahmoodi Yeganeh E, Rahmani H, Mohammadi M, Mokhtari Z. Investigating the barriers of women’s managerial promotion from the perspective of female high school managers in Shiraz. Educ Manag Res. 2015;23(6):87-104.
82.Jonsen K, Maznevski ML, Schneider S. Diversity and its not so diverse literature: An international perspective. Int J Cross-Cult Manag. 2011;11(1):35-62. doi: 10.1177/1470595811398798.
83.Hesarzadeh R, Bazrafshan A. CEO ability and regulatory review risk. Manag Audit J. 2019;34(5):575-605. doi: 10.1108/MAJ-08-2018-1958.
84.Wiley C, Monllor-Tormos M. Board gender diversity in the STEM&F sectors: The critical mass required to drive firm performance. J Leadersh Organ Stud. 2018;25(3):290-308. doi: 10.1177/1548051817750535.
85.Khatib SF, Nour A. The impact of corporate governance on firm performance during the COVID-19 pandemic: Evidence from Malaysia. J Asian Finance Econ Bus. 2021;8(2):943-52. Available from: https://ssrn.com/abstract=3762393. Accessed on 13 Jan 2021.
86.Shen H, Fu M, Pan H, Yu Z, Chen Y. The impact of the COVID-19 pandemic on firm performance. In: Research on Pandemics. New York (NY, US): Routledge; 2021. p. 81-98.
87.Behbahani Nia P, Safarzadeh E, Motahari F. Corporate governance, financial reporting quality, and firm performance in Tehran Stock Exchange with emphasis on the COVID-19 pandemic. Appl Res Financ Report. 2023;12(2):251-80.
88.Bentley-Goode KA, Newton NJ, Thompson AM. Business strategy, internal control over financial reporting, and audit reporting quality. Audit J Pract Theory. 2017;36(4):49-69. doi: 10.2308/ajpt-51693.
89.Adams RB, Hermalin BE, Weisbach MS. The role of boards of directors in corporate governance: A conceptual framework and survey. J Econ Lit. 2010;48(1):58-107. doi: 10.1257/jel.48.1.58.
90.Bhagat S, Bolton B. The non-correlation between board independence and long-term firm performance. J Corp Law. 2002;27(2):231-74.
91.Low DC, Roberts H, Whiting RH. Board gender diversity and firm performance: Empirical evidence from Hong Kong, South Korea, Malaysia, and Singapore. Pac-Basin Financ J. 2015;35(4):381-401. doi: 10.1016/j.pacfin.2015.02.008.
92.Jensen MC. The modern industrial revolution, exit, and the failure of internal control systems. J Finance. 1993;48(3):831-80. doi: 10.1111/j.1540-6261.1993.tb04022.x.
93.Al-okaily J, Naueihed S. Audit committee effectiveness and family firms: Impact on performance. Manag Decis. 2020;58(6):1021-34. doi: 10.1108/MD-04-2018-0422.
94.Stephen OA, Iyoha FO, Obigbemi IF. Effectiveness of audit committee and firm financial performance in Nigeria: An empirical analysis. J Account Auditing Res Pract. 2014;2014:301176. doi: 10.5171/2014.301176.
95.Abdullah AM, Qaiser RY, Ashikur R, Ananda W, Thurai MN. Relationship between audit committee characteristics, external auditors and economic value added (EVA) of public listed firms in Malaysia. Corp Ownership Control. 2014;12(1):899-910. doi: 10.22495/cocv12i1c9p12.
96.Bansal N, Sharma AK. Audit committee, corporate governance and firm performance: Empirical evidence from India. Int J Econ Finance. 2016;8(3):103.
97.Han KC, Suk DY. The effect of ownership structure on firm performance: Additional evidence. Rev Financ Econ. 1998;7(2):143-55. doi: 10.1016/S1058-3300(99)80150-5.
98.Lin YR, Fu XM. Does institutional ownership influence firm performance? Evidence from China. Int Rev Econ Finance. 2017;49:17-57.
99.Maury B. Family ownership and firm performance: Empirical evidence from Western European corporations. J Corp Financ. 2006;12(2):321-41. doi: 10.1016/j.jcorpfin.2005.02.002.
100.Chu W. Family ownership and firm performance: Influence of family management, family control, and firm size. Asia Pac J Manag. 2011;28:833-51. doi: 10.1007/s10490-009-9180-1.
101.Hu Y, Izumida S. Ownership concentration and corporate performance: A causal analysis with Japanese panel data. Corp Gov Int Rev. 2008;16(4):342-58. doi: 10.1111/j.1467-8683.2008.00690.x.
102.Nguyen T, Locke S, Reddy K. Does boardroom gender diversity matter? Evidence from a transitional economy. Int Rev Econ Finance. 2015;37:184-202.
103.Wild JJ. Managerial accountability to shareholders: Audit committees and the explanatory power of earnings for returns. Br Account Rev. 1994;26:353-74. doi: 10.1006/bare.1994.1024.
104.Sarang AAA, Aubert N, Hollandts X. Board gender diversity and the cost of equity: What difference does gender quota legislation make? Int J Finance Econ. 2023;28(1):1-21. doi: 10.1002/ijfe.2774.
105.Baghdadi GA, Safiullah M, Heyden MLM. Do gender diverse boards enhance managerial ability? J Corp Finance. 2023;79:102364. doi: 10.1016/j.jcorpfin.2023.102364.
106.Nizam Ud Din XC, Ahmad B, Sheikh MF, Adedigba OG, Zhao Y, et al. Gender diversity in the audit committee and the efficiency of internal control and financial reporting quality. Econ Res-Ekonomska Istraživanja. 2021;34(1):1170-89. doi: 10.1080/1331677X.2020.1820357.
107.McLaughlin C, Armstrong S, Moustafa MW, Elamer AA. Audit committee diversity and corporate scandals: Evidence from the UK. Int J Account Inf Manag. 2021;29(5):734-63. doi: 10.1108/IJAIM-01-2021-0024.
108.Usman M, Farooq MU, Zhang J, Makki AMM, Khan MK. Female directors and the cost of debt: Does gender diversity in the boardroom matter to lenders? Manag Audit J. 2019;34(4):374-92. doi: 10.1108/MAJ-04-2018-1863.
109.Pathak S, Samba C, Li M. Audit committee diversity and financial restatements. J Manag Gov. 2021;25:899-931. doi: 10.1007/s10997-020-09548-4.

引用本文

Zabihollah Rezaee*,Ghodratollah Haidarinezhad. Gender Diversity in Audit Committees and Firm Performance: Insights from a Developing Economy [J]. Journal of Sustainability Research. 2025; 7; (4). - .

文献评论

相关学者

相关机构