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

Authors

  • Hua-Wei Huang National Cheng Kung University, Taiwan, ROC, Taiwan, Province of China
  • Yun-Chia Yan University of New Orleans, United States
  • James M. Fornaro State University of New York-College at Old Westbury, United States
  • Ahmed Elshahat University of New Orleans, Bradley University, United States

DOI:

https://doi.org/10.32890/ijbf2011.8.1.4

Keywords:

Audit committee, Female director, Corporate governance, Market price reaction, US-traded foreign fi rms

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.

 

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Published

13-03-2011

Issue

Vol. 8 No. 1 (2011): International Journal of Banking and Finance (IJBF) Vol. 8, No.1, 2011

Section

Articles

How to Cite

Huang, H.-W., Yan, Y.-C., Fornaro, J. M., & Elshahat, A. (2011). Market Reactions to Audit Committee Director’s Gender: Evidence from US-Traded Foreign Firms. International Journal of Banking and Finance, 8(1), 59-75. https://doi.org/10.32890/ijbf2011.8.1.4

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Harvested 2026-09-07
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Identifiers DOI 10.32890/ijbf2011.8.1.4 OpenAlex W7011288410