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Audit Quality and Family Ownership: The Mediating Effect of Boards’ Gender Diversity

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  • Fatma Zehri

    (Accounting Department, Business College, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh 12477, Saudi Arabia)

Abstract

This paper investigates the critical role of female directors on the boards of Saudi-listed companies and how they influence the relationship between the demand for higher audit quality and family ownership. The results indicate that female directors fully mediate the relationship between audit quality and family ownership. This suggests that the involvement of female directors on boards may enhance the demand for higher audit quality in family-owned firms. These findings corroborate both agency theory, family business, and stakeholder theoretical background. From a practical standpoint, this study offers valuable insights for investors, policymakers, and regulators. It underscores the importance of increasing female representation on the boards of Saudi family-owned firms to promote effective governance and improve organizational transparency.

Suggested Citation

  • Fatma Zehri, 2025. "Audit Quality and Family Ownership: The Mediating Effect of Boards’ Gender Diversity," JRFM, MDPI, vol. 18(2), pages 1-20, January.
    • Handle: RePEc:gam:jjrfmx:v:18:y:2025:i:2:p:49-:d:1573964
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    References listed on IDEAS

    as
    1. Mahfoudh Abdulkarem Al-Musali & Mohammed Helmi Qeshta & Mohamed Ali Al-Attafi & Abood Mohammad Al-Ebel, 2019. "Ownership structure and audit committee effectiveness: evidence from top GCC capitalized firms," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 12(3), pages 407-425, June.
    2. Mamdouh Abdulaziz Saleh Al-Faryan & Everton Dockery, 2021. "Testing for efficiency in the Saudi stock market: does corporate governance change matter?," Review of Quantitative Finance and Accounting, Springer, vol. 57(1), pages 61-90, July.
    3. Mohammed Naif Alshareef, 2024. "Does family ownership moderate the relationship between board gender and capital structure of Saudi-listed firms?," Cogent Business & Management, Taylor & Francis Journals, vol. 11(1), pages 2367732-236, December.
    4. Karen M. Y. Lai & Bin Srinidhi & Ferdinand A. Gul & Judy S. L. Tsui, 2017. "Board Gender Diversity, Auditor Fees, and Auditor Choice," Contemporary Accounting Research, John Wiley & Sons, vol. 34(3), pages 1681-1714, September.
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