Does Gender diversity in the audit committee influence key audit matters’ readability in the audit report? UK Evidence
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In: Corporate Social Responsibility and Environmental Management, Vol. 25, No. 5, 01.09.2018, p. 748-755.
Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - Does Gender diversity in the audit committee influence key audit matters’ readability in the audit report?
T2 - UK Evidence
AU - Velte, Patrick
PY - 2018/9/1
Y1 - 2018/9/1
N2 - This paper investigates the relationship between the percentage of women on audit committees (WOAC) in UK firms and auditors' disclosures on key audit matters (KAM) from 2014 to 2015. The results show that firms with a higher percentage of WOAC have higher readability of KAM disclosures as measured by the Flesch reading ease index. By modifying our dependent and independent variables, sensitivity tests (Blau index and Fog readability index) also corroborate the expectation that WOAC will lead to greater readability of KAM disclosures, with stricter monitoring activities and greater risk avoidance in the audit committee. We provide a useful contribution to recent empirical sustainable corporate governance literature for practices, researchers, and regulators.
AB - This paper investigates the relationship between the percentage of women on audit committees (WOAC) in UK firms and auditors' disclosures on key audit matters (KAM) from 2014 to 2015. The results show that firms with a higher percentage of WOAC have higher readability of KAM disclosures as measured by the Flesch reading ease index. By modifying our dependent and independent variables, sensitivity tests (Blau index and Fog readability index) also corroborate the expectation that WOAC will lead to greater readability of KAM disclosures, with stricter monitoring activities and greater risk avoidance in the audit committee. We provide a useful contribution to recent empirical sustainable corporate governance literature for practices, researchers, and regulators.
KW - Management studies
KW - audit committees
KW - audit quality
KW - auditor reporting
KW - gender diversity
KW - key audit matters
KW - sustainable corporate governance
KW - Sustainability Science
KW - Gender and Diversity
UR - http://www.scopus.com/inward/record.url?scp=85044308434&partnerID=8YFLogxK
U2 - 10.1002/csr.1491
DO - 10.1002/csr.1491
M3 - Journal articles
VL - 25
SP - 748
EP - 755
JO - Corporate Social Responsibility and Environmental Management
JF - Corporate Social Responsibility and Environmental Management
SN - 1535-3958
IS - 5
ER -