Research On Performance Of Female In Audit Committee

The audit committee which is a special committee of the board of directors is to strengthen the governance of the board of directors, especially the financial governance, so as to improve the quality of financial report. Therefore, in order to regulate corporate governance, our country issued "listed corporate governance standards" in2002, the regulation put forward the provisions regarding the establishment of the audit committee for the first time in China. And how can improve the governance effect of the audit committee attracts the scholars’ attention.A large number of research find that the independence、 expertise of the audit committee can improve the corporate governance. However, the former research ignores the differences between male and female.Modern psychology believe that the behavior of male and female is difference.The female is more conservative、 cautious than male. Meantime, female is more careful、sensitive、 patience,and good at listening.Also female can solve the problem in a more gentle way and better coordination.This can promote the organization more harmoniously. So female in the audit committee can improve the diversity and operation efficiency. Female will be more careful and cautious in the review of the company’s financial information, in order to improve the quality of financial information.In this paper, we investigate the performance of female in the audit committee from the perspective of the earnings management.We first reviewed the related literature about audit committee governance,earnings management and female governance,and analysised agency theory and gender diversity,then put forward the research hypothesis and empirical model. We collected related data of Shanghai and shenzhen listed company from2008to2009, and ultimately get the1896samples. At the same time,we used section modified Jones model to calculate the discretionary accrual, and analysised the research hypothesis with SPSS.The empirical results of the study support our hypothesis, namely female in the audit committee can effectively restrain the administration’s earnings management behavior.And the higher proportion of female, the lower degree of earnings management.