The effect of gender diversity in the audit committee and the efficiency of internal controls on the quality of financial reporting and business credit

The most important characteristics of women are accepting less risk, being more conservative and observing moral principles. This research examines the effect of gender diversity in the audit committee and the efficiency of internal controls on the quality of financial reporting and commercial credit in companies listed in Tehran Stock Exchange. The current research is an applied research in terms of purpose, quantitative in terms of data type, inductive in type of reasoning, and descriptive-correlation in terms of implementation method. After examining the classic regression assumptions, generalized regression patterns have been used. The relations between variables have been tested using correlation and multiple regression models with dynamic panel approach using R statistical software. In order to investigate the hypotheses of the research, a statistical sample of the companies listed in the Tehran Stock Exchange was considered through systematic elimination during the years 2016-2020. Based on statistical analysis and estimation of regressions, the results of examining the hypotheses at the expected error level showed that there is no significant relation between gender diversity in the audit committee and the quality of financial reporting. There is no significant relation between gender diversity in audit committee and business credit. There is a positive and significant relation between the efficiency of internal controls and the quality of financial reporting. There is no significant relation between the effectiveness of internal controls and business credit. Therefore, compliance with appropriate internal controls can increase the quality of financial reports.