Do Females in Audit Firm Governance Affect Firm Performance? Findings from Turkey
Gender in Management, Forthcoming
Posted: 23 Sep 2019 Last revised: 18 Dec 2020
Date Written: December 17, 2020
Abstract
Purpose The current study aims to contribute to the literature by offering a different sector and emphasising the importance of females in audit firm (AF) governance on audit firm performance (AFP). Design/Methodology/Approach Ordinary least square (OLS) and instrument variables regression (IVREG) with two-stage least square (2SLS) are employed to test the paper’s hypotheses. Findings Both OLS and IVREG estimation results show that both the proportion of females and gender diversity at board and owner levels and the total number of shares of female owners seem to enhance the performance of AFs. Practical Implications These results may be important for policymakers and regulators to set a quota for women’s representation on AF governance or decide arrangements for women in AFs as in the regulations for the high hierarchical levels of other corporate firms. Originality/ Value This paper extends the current literature in the context of AFs in Turkey, positing that females in AF governance might enhance performance to a great extent.
Keywords: Gender Diversity, Audit Firms, Audit Firm Performance, Boards of Audit Firms, Owners of Audit Firms, Agency Theory, Resource-Based Theory, Resource Dependence Theory
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