Research On The Relationship Among Gender Diversity Of The Board Of Directors, Internal Control Quality And Financial Performance Of Listed Companies

In the context of increasingly fierce global competition,higher requirements are placed on the effectiveness of corporate governance.How to occupy market share in a changing market environment and improve financial performance is the core issue of corporate thinking.This not only requires the company to have strong capture capabilities for external opportunities,has a keen sense of risk,but also requires the orderliness and stability of the organization.As the highest management body of the company,its diversity has always been considered as an effective way to improve corporate performance.The existing research on the diversity of the board of directors mostly studies the scale of the board of directors,the proportion of independent directors and non-independent directors in the board of directors,the leadership structure of the board of directors(the unity of the chairman and the CEO),gender,age,education,and professionalism.The impact of business performance.This paper combines the research hotspot of gender diversity of the board of directors to deeply study the mechanism of the influence of gender diversity on the financial performance of the company.By reading a large amount of literature,it is found that the direct impact of gender diversity on the financial performance of the board of directors is different.The potential reason may be that the impact of the gender research of the board on the company’s performance is complicated,so the existing research turns to the intermediary effect and the regulatory effect.Research.Based on principal-agent theory,human capital theory,individual cognitive limitation theory and contingency theory,this paper puts forward the influence path of “sector gender diversification-internal control quality-financial performance”;and measures the degree of industry competition as the industry heterogeneity.A dimension to explore whether it plays a regulatory role in the impact of gender diversity on the board’s financial performance.Through the relevant data of the Shanghai and Shenzhen board and the small and medium-sized board A-share listed companies in 2012-2016,the non-balanced panel model was established.Firstly,the direct effect of gender diversity on the financial performance of the board was tested,and then Wen Zhonglin et al.(2004)proposed The mediation effect test procedure and the Bootstrap method test the mediating effect of internal control quality on the impact of gender diversity on financial performance of the board of directors,and then establish the influence path of “sector gender diversification – internal control quality – financial performance”.Finally,The grouping regression method and coefficient difference test are used to study the regulation effect of industry competition degree in this influence path.The main conclusions of this paper include:(1)the current gender diversification of the board of directors in China is low;(2)the gender diversity of the board of directors is positively related to the financial performance of the company;(3)the quality of internal control plays a role in the impact of gender diversity on the financial performance of the board of directors.With a full intermediary role,there is a path of influence of “sector gender diversity – internal control quality – financial performance”;(4)the degree of industry competition cannot adjust the relationship between gender diversity and financial performance of the board of directors,that is,the gender diversity of the board of directors is high.There is no significant difference in the impact of industry and low-competition industries on financial performance.Based on the above conclusions,in order to enhance the governance ability of the board of directors and improve the financial performance of the company,the following suggestions are proposed:(1)Enhance the gender diversity of the board of directors and optimize the structure of the board of directors;(2)Different industries should pay attention to gender diversity of the board;(3)Enhance the awareness of internal control and comprehensively improve the quality of internal control.(4)The Chinese government should establish a quota system for female directors.