Board Gender Diversity, Auditor Quality Choice and Audit Fees
Posted: 17 Apr 2012
Date Written: April 17, 2012
Using a sample of U.S. firms spanning 2001-2008, we examine whether female directors or nonexecutive female directors or female audit committee members affect auditor choice and audit effort measured by audit fees. After correcting for selectivity bias and controlling for other known board, firm and industry characteristics, we find that firms whose boards exhibit gender diversity pay higher audit fees and choose specialist auditors compared to their peers. Our findings suggest that boards with female directors are more likely to demand more monitoring in the form of more audit effort and higher audit quality, ceteris paribus.
Keywords: audit fees, corporate governance, gender diversity, audit quality
JEL Classification: M41, M42
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