Disclosing material weakness in internal controls: Does the gender of audit committee members matter?

Authors

Robert James Parker
Mai Dao
Hua-wei Huang
Yun-Chia Yan, The University of Texas Rio Grande ValleyFollow

Document Type

Article

Publication Date

10-2017

Abstract

As mandated by Sarbanes-Oxley Act, firms must disclose material weaknesses in internal controls. This study extends the body of accounting research that seeks to identify the factors associated with such disclosure. Drawing upon gender research in the behavioral sciences, we argue that female audit committee members examine internal controls more critically and thoroughly than their male counterparts; hence, firms with females in these positions are more likely to report problems. A logistic regression model of material weakness disclosure is developed that includes, as a predictor variable, proportion of females on the audit committee. Results support the proposed relationship.

Comments

© 2015 City University of Hong Kong and National Taiwan University

https://www.tandfonline.com/share/GDR9NWHBSMQWGIXQ93QQ?target=10.1080/16081625.2015.1057190

Recommended Citation

Parker, R. J., Dao, M., Huang, H. W., & Yan, Y. C. (2015). Disclosing material weakness in internal controls: Does the gender of audit committee members matter?*. Asia-Pacific Journal of Accounting & Economics, 24(3–4), 407–420. https://doi.org/10.1080/16081625.2015.1057190

Publication Title

Asia-Pacific Journal of Accounting & Economics

DOI

10.1080/16081625.2015.1057190