Joint Meeting of the Mid-Atlantic and Northeast Regions

The Association Between Audit Committee Gender Diversity and Financial Reporting Timeliness

• In Event: Career Concern and Managerial Incentives

Abstract

This study examines the association between audit committee gender diversity and financial reporting timeliness. We predict and find that firms with audit committee gender diversity are associated with greater financial reporting timeliness. Specifically, firms with a female audit committee member have less earnings announcement lag, less 10-K filing lag, and are less likely to file late. The relations are incremental to the effect of having female directors; among firms with female directors a gender diverse audit committee remains associated with timely financial reporting. The relations are also robust to the use of a propensity score matched sample. Additional analyses suggest the effects are concentrated in firms that require more timely reporting, accelerated filers. Accelerated filers are more likely to have a gender diverse audit committee, and the effect of audit committee gender diversity is significantly greater for accelerated filers. While existing literature provides evidence of relations between committee member characteristics (e.g., independence, expertise, and diligence) and financial reporting outputs (e.g., restatements, fraud, and going concern reporting), no existing study examines the relation between audit committee gender diversity and timeliness. Our study contributes to a better understanding of the benefits of gender diversity and the settings in which its effects are greatest.

Authors

• Jonathan Nash, University of New Hampshire

• Cristina Bailey, University of New Mexico