The Role of Female Committees on Audit Quality of Companies Listed in The Thailand Market
Main Article Content
Abstract
The role of a board of directors is a key mechanism in corporate governance, influencing both the quality of financial statements and audit quality. Prior studies in many countries, have found that female board members play a crucial role in management, contributing to improved audit quality. However, research on the impact of female board members on audit quality remains limited in the context of an advanced emerging economy such as the Thai market. This study investigated the relationship between female board membership and audit quality among listed companies from the Stock Exchange of Thailand (SET). Specifically, the study examines the role of female membership at two levels, specifically the subcommittee (i.e., audit committee) and main committee (i.e., board of directors) level. Discretionary accruals, as measured by the Modified Jones Model (1995), were employed as a proxy for audit quality, while audit fees and audit firm size were also included as additional measures of audit quality. The findings, however, were inconclusive. One possible explanation is the relatively low percentage of female members compared to their male counterparts. Additionally, companies may appoint female board members primarily to meet regulatory requirements or diversity standards, rather than due to recognition of their practical roles and genuine contributions within the organization.
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References
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