TY - JOUR
T1 - Disclosing material weakness in internal controls
T2 - Does the gender of audit committee members matter?*
AU - Parker, Robert James
AU - Dao, Mai
AU - Huang, Hua Wei
AU - Yan, Yun Chia
N1 - Publisher Copyright:
© 2015 City University of Hong Kong and National Taiwan University.
PY - 2017/10/2
Y1 - 2017/10/2
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=84936980751&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84936980751&partnerID=8YFLogxK
U2 - 10.1080/16081625.2015.1057190
DO - 10.1080/16081625.2015.1057190
M3 - Article
AN - SCOPUS:84936980751
SN - 1608-1625
VL - 24
SP - 407
EP - 420
JO - Asia-Pacific Journal of Accounting and Economics
JF - Asia-Pacific Journal of Accounting and Economics
IS - 3-4
ER -