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Market Reactions to Audit Committee Director’s Gender: Evidence from US-Traded Foreign Firms


Huang, Hua-Wei and Yan, Yun-Chia and Fornaro, James M. and Elshahat, Ahmed (2011) Market Reactions to Audit Committee Director’s Gender: Evidence from US-Traded Foreign Firms. The International Journal of Banking and Finance, 8 (1). pp. 59-75. ISSN 1617-722

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Abstract

This study investigates whether the appointment of a female to the audit committee of a foreign issuer in the US is positively associated with subsequent market price reaction. We hypothesize that female members on the audit committee can strengthen corporate governance by their conservative and ethical qualities. Accordingly, such appointments deliver a positive message to capital market participants. In order to observe the impact of audit committee gender diversity on foreign firms, we include all audit committee appointments of US-traded foreign firms from 2002 to 2009. We find that the appointment of female audit committee members has significant positive cumulative abnormal returns compared to the appointment of male audit committee members.

Item Type: Article
Uncontrolled Keywords: Audit committee, female director, corporate governance, market price reaction, US-traded foreign firms
Subjects: H Social Sciences > HG Finance
Divisions: School of Economics, Finance & Banking
Depositing User: Mrs. Norazmilah Yaakub
Date Deposited: 25 Oct 2018 02:19
Last Modified: 25 Oct 2018 02:19
URI: http://repo.uum.edu.my/id/eprint/25050

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