Impact of Presence of Women in the Board on the Weakness of Internal Control

Document Type : Original Article

Authors

1 Associate Professor, Faculty of Management & Economics, Tarbiat Modares University, Tehran, Iran. (Corresponding author)

2 MSc Accounting, Tarbiat Modares University, Tehran, Iran.

Abstract

The board of directors is the head of the supervisor and controller in the organization's system. Since the emergence of widespread changes in the business environment has led organizations to take advantage of diverse specializations and skills, changing the composition of the board and the diversity of vision and perceptual skills in their composition has doubled.
One of the indicators of diversity in the composition of the board of directors is the ratio of the presence of women in the composition of the board of directors. In this paper, the relationship between the presence of women in the board of directors and the weakness of internal control is examined. The required information from the financial statements and the report of the board of directors of 64 companies listed in Tehran Stock Exchange during the period 2012 to 2015 has been collected. To test the research hypothesis, logistic regression has been used Eviews software. The results of the research show that the presence of women in the board has a negative effect on the weakness of internal control. With the increasing presence of women in the board of directors, the company's internal control system is less vulnerable.

Keywords

References

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International Journal of Finance & Managerial Accounting
Volume 3, Issue 10
August 2018
Pages 83-94

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