Investigating the Role of the Chief Audit Executive Gender on the Relationship Between the Internal Audit Quality and Firm Performance
بیتا مشایخی
1
(
استاد گروه حسابداری دانشگاه تهران
)
Amrolahi Mohammad Reza
2
(
Accounting and Auditing Department
)
Keywords: Internal Audit Quality, Chief Audit Executive (CAE), Gender, Performance,
Abstract :
Purpose The purpose of this research is to investigate the moderating role of the Chief Audit Executive (CAE) Gender on the relationship between internal audit quality and firm performance. Methodology: Data was collected using the information disclosed by the registered companies at the TSE during the years 2018 to 2022 in the Codal and then analyzed has been done with using the regression equation method (GLS). Results: The results showed that the CAE did not have a significant effect on the relationship between the quality of internal audit and the performance of the investigated business units. Conclusion: Results show that in the investigated companies, the financial performance of companies in the short term is affected by several factors such as sanctions, exchange rate changes, and other factors. There are factors that directly and indirectly affect the performance of companies, and the mentioned factors are not under the control of the business unit. The implementation of high-quality internal audit cannot neutralize the negative effect of some of these factors in practice negative relationship between the quality of internal audit and the performance of the business unit, and the gender of CAE was not identified as significant in this relationship. Contribution: Considering that no research measures moderating role of CAE on the relationship between the quality of the internal audit on the performance of the business unit in Iran, this research helps to fill this gap.
بیابانی، سروش، گرکز، منصور. (2014). بررسی رابطه بین حضور مدیران زن در هیئت مدیره با عملکرد شرکت های پذیرفته شده در بورس اوراق بهادار تهران. دانش حسابداری و حسابرسی مدیریت، 3(12)، 63-74.
سازمان بورس و اوراق بهادار. (1391). منشور فعالیت حسابرسی داخلی.
علوی طبری، سیدحسین، مجتهدزاده، ویدا، و بختیاری، نغمه. (1391). تاثیر جنسیت حسابرس بر کیفیت حسابرسی مستقل. پژوهش های حسابداری مالی و حسابرسی (پژوهشنامه حسابداری مالی و حسابرسی)، 4(13)، 21-42.
محسنی نیا، سعید، و باباجانی، جعفر. (1399). بررسی تأثیر کیفیت حسابرسی داخلی بر کیفیت گزارشگری مالی در شرکت‌های پذیرفته‌شده در بورس اوراق بهادار تهران. نشریه پژوهش های حسابداری مالی، 12(4)، 19-38
مصلی، مهسا، پیرایش، رضا، جوزی، مسعود. (1399). تأثیر تنوع جنسیتی در هیأت مدیره بر سود آوری شرکت های دارویی پذیرفته شده در بورس اوراق بهادار تهران. نشریه علمی رویکردهای پژوهشی نوین مدیریت و حسابداری، 4(12)، 43-59.
Abdul Rahman, R. & Mohamed Ali, F. (2006). Board, audit committee, culture and earnings management: Malaysian evidence. Managerial Auditing Journal, 21(7), 783-804.
Abidin, N. (2021). Internal audit quality and disclosure on risk management and internal control. International Journal of Business, Economics and Management, 8(3), 154-164.
Adams, R. & Ferreira, D. (2009). Women in the boardroom and their impact on governance and performance. Journal of Financial Economics, 94(2), 291-309.
Ahern, K. & Dittmar, A. (2012). The changing of the boards: The impact on firm valuation of mandated female board representation. The Quarterly Journal of Economics, 127(1), 137-197.
Ahmadi, A., Nakaa, N. & Bouri, A. (2018). Chief Executive Officer attributes board structures, gender diversity and firm performance among French CAC 40 listed firms. Research in International Business and Finance, 44, 218-226.
Alaswad, S. & Stanisic, M. (2016). Role of internal audit in performance of Libyan financial organizations. International Journal of Applied Research, 2(2), 352-356.
Alflahat, M. (2017). The impact of internal audit on organizational performance of selected Jordanian companies. International Journal of Multidisciplinary Research and Development, 4(8), 285-289.
Al-Matari, E. & Mgammal, M. (2019). The moderating effect of internal audit on the relationship between corporate governance mechanisms and corporate performance among Saudi Arabia listed companies. Contaduria y Administracion, 65(1), 1-36.
Alsurayyi, A. & Alsughayer, S. (2021). The relationship between corporate governance and firm performance: The effect of internal audit and enterprise resource planning (ERP). Open Journal of Accounting, 10(2), 56-76.
Alzeban, A. (2021). Internal audit findings, audit committees, and firm performance evidence from the UK. Asia-Pacific Journal of Accounting and Economics.
Andoh, J. A. N., Abugri, B. A., & Anarfo, E. B. (2022). Board Characteristics and performance of listed firms in Ghana. Corporate Governance: The International Journal of Business in Society, ahead-of-print.
Bengrich, M. & El Ghadouia, M. (2020). Etude de l'influence de l'audit interne sur la performance globale des entreprises de la région Souss Massa. Revue Internationale du Chercheur, 1(2), 98-116.
Brahma, S., Nwafor, C. & Boateng, A. (2021). Board gender diversity and firm performance: The UK evidence. International Journal of Finance and Economics, 26(4), 5704-5719.
Carter, D., Simkins, B. & Simpson, W. (2003). Corporate Governance, Board Diversity, and Firm Value. The Financial Review, 38(1), 33-53.
Chatiwong, T., Ussahawanitichakit, P. & Janjarasjit, S. (2016). Proactive internal audit strategy and firm performance: Empirical evidence from Thai-listed firms. AU-GSB e Journal, 9(1), 3-24.
Dellai, H. (2023). Does Internal Audit Quality Improve Firm Performance? The Moderating Effect of Chief Audit Executive Gender. Information Management and Business Review, 15(2 (I)), 19-28.
Deyganto, K. (2019). Internal audit quality and its impact on public sector organizational performance: Evidence from sector Bureaus of Southern Ethiopia. International Journal of Economy, Energy and Environment, 4(6), 118-131.
Eagly, A. & Carli, L. (2003). Finding gender advantage and disadvantage: Systematic research integration is the solution. The Leadership Quarterly, 14(6), 851-859.
Eagly, A., Karau, S. & Makhijani, M. (1995). Gender and the effectiveness of leaders: Ameta-analysis. Psychological Bulletin, 117(1), 125-145.
Ejoh, N. & Ejom, P. (2014). The effect of internal audit function on the financial performance of tertiary institutions in Nigeria. International Journal of Economics, Commerce and Management, 2(10), 1-14.
Elewa, M. & El-Haddad, R. (2019). The effect of audit quality on firm performance: A panel data approach. International Journal of Accounting and Financial Reporting, 9(1), 229-244.
Farrell, K. & Hersch, P. (2005). Additions to corporate boards: The effect of gender. Journal of Corporate Finance, 11(1/2), 85-106.
Glass, C., Cook, A. & Ingersoll, A. (2016). Do women leaders promote sustainability? Analyzing the effect of corporate governance composition on. Business Strategy and the Environment, 25(7), 495-511.
Gordini, N. & Rancati, E. (2017). Gender diversity in the Italian boardroom and firm financial performance. Management Research Review, 40(1), 75-94.
Gramling, A., Maletta, M., Arnold, S. & Church, B. (2004). The role of the internal audit function in corporate governance: A synthesis of the extant internal auditing literature and directions for future research. Journal of Accounting Literature, 23(1), 194-244.
Haniffa, R. & Hudaib, M. (2006). Corporate governance structure and performance of Malaysian listed companies. Journal of Business Finance and Accounting, 33(7), 1034-1062.
Hardies, K. & Khalifa, R. (2018). Gender is not"a dummy variable": a discussion of current gender research in accounting. Qualitative Research in Accounting and Management, 15(3), 385-407.
Hazaea, S., Tabash, M., Khatib, S., Zhu, J. & Al-Khuali, A. (2020). The impact of internal audit quality on the financial performance of Yemeni commercial banks: An empirical investigation. The Journal of Asian Finance, Economics and Business, 7(11), 867-875.
Helfat, C., Harris, D. & Wolfson, P. (2006). The pipeline to the top: Women and men in the top executive ranks of U.S corporations. The Academy of Management Perspectives, 20(4), 42-64.
Hutchinson, M. & Zain, M. (2009). Internal audit quality, audit committee independence, growth opportunities and firm performance. Corporate Ownership and Control, 7(2), 50-63.
IIA. (1999). Definition of Internal Auditing. The Institute of Internal Auditors, Altamonte Springs, FL.
Ittonen, K. & Peni, E. (2012). Auditor's gender and audit fees. International Journal of Auditing, 16(1), 1-18.
Ittonen, K., Vahamaa, E. & Vahamaa, S. (2013). Female auditors and accruals quality. Accounting Horizon, 27(2), 205-228.
Jiang, L., Messier, W. & Wood, D. (2020). The association between internal audit operations-related services and firm operating performance. Auditing: A journal of practice and Theory, 39(1), 101-124.
Kiabel, B. (2012). Internal auditing and performance of government enterprises: A Nigerian study. Global Journal of Management and Business Research, 12(6), 1-17.
Kim, D. & Starks, L. (2016). Gender diversity on corporate boards: Do women contribute unique skills? American Economic Review, 106(5), 267-271.
Liu, Y., Wei, Z. & Xie, F. (2014). Do women directors improve firm performance in China? Journal of Corporate Finance, 28(C), 169-184.
Muchiri, N. & Jagongo, A. (2017). Internal auditing and financial performance of public institutions in Kenya: A case study of Kenya Meat Commission. African Journal of Business Management, 11(8), 168-174.
Nekhili, M., Javed, F. & Nagati, H. (2022). Audit partner gender, leadership and ethics: The case of earnings management. Journal of Business Ethics, 177, 233-260.
Nelson, J. (1996). Feminism, Objectivity 0and Economics. Routledge, London.
Newman, W. & Comfort, M. (2018). Investigating the value creation of internal audit and its impact on company performance. Academy of Entrepreneurship Journal, 24(3), 1-21.
Oussii, A. & Klibi, M. (2019). Does the chief audit executive gender matter to internal audit effectiveness? Evidence from Tunisia. African Journal of Economic and Management Studies, 10(4), 424-439.
Ozdemir, O. (2020). Board diversity and firm performance in the US tourism sector: The effect of institutional ownership. International Journal of Hospitality Management, 91, 102693.
Pizzini, M., Lin, S., Vargus, M. & Ziegenfuss, D. (2015). The impact of internal audit function quality and contribution on audit delays. Auditing: A Journal of Practice and Theory, 34(1), 25-58.
Post, C. & Byron, K. (2015). Women on boards and firm financial performance: A meta-analysis. Academy of Management Journal, 58(5), 1546-1571.
Postula, M., Irodenko, O. & Dubel, P. (2020). Internal audit as a tool to improve the efficiency of public service. European Research Studies Journal, (3), 699-715.
Prawitt, D., Smith, J. & Wood, D. (2009). Internal audit quality and earnings management. The Accounting Review, 84(4), 1255-1280.
Qian, G. & Li, L. (2003). Profitability of small and medium-sized enterprises in high tech industries: The case of the biotechnology industry. Strategic Management Journal, 24(9), 881-887.
Qian, L., Norazlin, A., Irene, W., Cheng, Z. & Hasahudin, B. (2019). Board gender diversity, board independence and firm performance in Malaysia. Institutions and Economies, 11(1), 1-20.
Rahim, S., Wahyuni, N., Anzhari, A. & Karim, A. (2022). Determination of audit quality: auditor gender stereotype study in South Sulawesi, Indonesia. Journal of Positive Schook Psychology, 6(11), 569-586.
Richardson, G., Taylor, G. & Lanis, R. (2013). Determinants of transfer pricing aggressiveness: Empirical evidence from Australian firms. Journal of Contemporary Accounting and Economics, 9(2), 136-150.
Robinson, G. & Dechant. (1997). Building a business case for diversity. Academy of Management Executive, 11(3), 21-31.
Sabatier, M. (2015). A women's boom in the boardroom: Effects on performance? Applied Economics, 47(26), 2717-2727.
Sarens, G. & Abdolmohammdi, M. (2011). Monitoring effects of the internal audit function: agency theory versus other explanatory variables. International Journal of Auditing, 15(1), 1-20.
Seierstad, C. (2016). Beyond the business case: The need for both utility and justice rationales for increasing the share of women on boards. Corporate Governance, 24(4), 390-405.
Soare, T., Detilleux, C. & Deschacht, N. (2022). The impact of the gender composition of company boards on firm performance. International Journal of Productivity and Performance Management, 71(5), 1611-1624.
Subhi, A. & Stanisic, M. (2016). Role of internal audit in performance of Libyan financial organizations. International Journal of Applied Research, 2(2), 352-356.
Talab, H., Abdul Manaf, K. & Siti Seri, D. (2018). Internal audit function, ownership structure and firm performance in Iraq. Journal of Engineering and Applied Sciences, 13(8), 2098-2102.
Ud Din, N., Cheng, X., Ahmad, B. & Sheikh, M. (2021). Gender diversity in the audit committee and the efficiency of internal control and financial reporting quality. Economic Research, 34(1), 1170-1189.
ussii, A. & Klibi, M. (2019). Does the chief audit executive gender matter to internal audit effectiveness? Evidence from Tunisia. African Journal of Economic and Management Studies, 10(4), 424-439.
Vadasi, C., Bekiars, M. & Andrikopoulos, A. (2021). Internal audit function quality and corporate governance: The case of Greece. Multinational Finance Journal, 25(1/2), 1-61.