Female Accounting Employees and Internal Control Quality

36 Pages Posted: 9 Jan 2020 Last revised: 20 Jul 2021

See all articles by Chuchu Liang

Chuchu Liang

University of California, Irvine - Paul Merage School of Business

Ben Lourie

University of California, Irvine

Alexander Nekrasov

University of Illinois Chicago

P. Eric Yeung

Cornell University - Samuel Curtis Johnson Graduate School of Management

Date Written: December 5, 2019

Abstract

We examine the association between the gender of accounting employees and internal control quality. Using novel data on corporate accounting employees, we find that firms with a higher proportion of female accountants are less likely to have future internal control weaknesses. This association is robust to using entropy balance matching and an instrumental variable approach that exploits variation in the external supply of female accountants. Additional analyses indicate that firms with a higher proportion of female accounting employees have fewer future financial restatements and higher accruals quality. Finally, we find that female accountants are less likely than their male counterparts to separate from their firms after internal control weaknesses. Overall, our evidence suggests that female accounting employees are associated with higher internal control quality.

Keywords: female employees, accounting employees, internal control quality

JEL Classification: M40, M41

Suggested Citation

Liang, Chuchu and Lourie, Ben and Nekrasov, Alexander and Yeung, P. Eric, Female Accounting Employees and Internal Control Quality (December 5, 2019). Available at SSRN: https://ssrn.com/abstract=3504465 or http://dx.doi.org/10.2139/ssrn.3504465

Chuchu Liang

University of California, Irvine - Paul Merage School of Business ( email )

Irvine, CA California 92697
United States

Ben Lourie

University of California, Irvine ( email )

Irvine, CA 92697-3125
United States

Alexander Nekrasov

University of Illinois Chicago ( email )

1200 W Harrison St
Chicago, IL 60607
United States

HOME PAGE: http://business.uic.edu/profiles/alexander-nekrasov/

P. Eric Yeung (Contact Author)

Cornell University - Samuel Curtis Johnson Graduate School of Management ( email )

Ithaca, NY 14853
United States

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