Gender Diversity of Audit Committees and Audit Fees: Evidence from Chinese Listed Companies

  • Rui Xiang Business School Sichuan University Chengdu, Sichuan, P.R. China 610064
  • Meng Qin Business School Sichuan University Chengdu, Sichuan, P.R. China 610064
  • Craig A Peterson Department of Finance & Commercial Law Haworth College of Business Western Michigan University Kalamazoo, MI 49008

Abstract

This paper investigates whether women, who serve on the audit committee of the board, can have a significant impact in reducing audit fees paid by China's A-share listed companies during the period 2004 to 2007. We show that audit committees composed of both men and women pay significantly smaller audit fees. The relationship is significantly greater in non-state enterprises than that exhibited by state-owned enterprises and significantly greater in companies deemed to have weak management vis-à-vis strong management. Further analysis shows that the composition of the committee is irrelevant when management is strong, regardless of whether it provides guidance for a state-owned enterprise or a strictly public company. When management is deemed weak, however, gender diversity is associated with smaller fees.

Author Biographies

Rui Xiang, Business School Sichuan University Chengdu, Sichuan, P.R. China 610064

Professor of Accounting

 

Craig A Peterson, Department of Finance & Commercial Law Haworth College of Business Western Michigan University Kalamazoo, MI 49008
Professor of Finance
Published
2015-12-14
Section
Research Articles