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Audit Characteristics, Gender Diversity and Firm Performance: Evidence from a Developing Economy

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  • Mohammad Rajon Meah
  • Kanon Kumar Sen
  • Md. Hossain Ali

Abstract

This study aims to explore the impact of audit characteristics and gender diversity on firm performance across family and non-family firms in Bangladesh. Using data of 61 non-family and 48 family firms from 2013 to 2019, this study applies system generalised method of moments approach to carry out regression analysis. Next, the consistency of results is detected by a full sample interaction analysis. In case of non-family firm, this study documents that Big4 audit firms (Big4) and female directors on board (FDR) have significant positive impact on firm performance. Conversely, audit meeting frequency (AMF) contributes negatively to the firm performance. Unfortunately, audit committee size (ACS) and audit committee independence (ACI) have no significant contribution on firm performance. In case of family firms, this study finds that ACS and ACI have significant negative impact on firm performance. Besides, Big4, AMF and FDR have no significant contribution on firm performance. It reflects that corporate governance mechanisms in family firm are not working well and even to some extent detrimental to the firm performance. It, ultimately, demands for reforms in corporate governance framework and incorporating new dimensions for family firms.

Suggested Citation

  • Mohammad Rajon Meah & Kanon Kumar Sen & Md. Hossain Ali, 2021. "Audit Characteristics, Gender Diversity and Firm Performance: Evidence from a Developing Economy," Indian Journal of Corporate Governance, , vol. 14(1), pages 48-70, June.
    • Handle: RePEc:sae:ijcgvn:v:14:y:2021:i:1:p:48-70
    DOI: 10.1177/09746862211007244
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    Cited by:

    1. Benedict Valentine Arulanandam & Christo Selvan & Goh Xin Tong, 2023. "Critical Factors Influencing Firms' Risk-Taking Behaviour: CEO Characteristics and the Moderating Role of the Audit Committee," Central European Business Review, Prague University of Economics and Business, vol. 2023(5), pages 1-41.

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