Research shows that larger, more profitable and more visible companies are less likely to disclose internal control weaknesses. Firms with similar characteristics tend to hire more female board members. This paper examines whether there is an association between companies that have a higher percentage of female board members and the disclosure of internal control weaknesses. Such an association signifies the importance of board diversity because diversification strengthens corporate governance, promoting a more productive and trustworthy company. In this study, a sample of 500 randomly selected companies is examined to determine a possible correlation. The results will determine the validity of the hypothesis that firms with a more diverse board of directors, measured by a larger percentage of female directors, are less likely to disclose an internal control weakness.
Recommended CitationGoyette, Jamie, "The Influence of Women in Business: Is a Higher Percentage of Women on a Company’s Board of Directors Associated with the Absence of Internal Control Weaknesses?" (2010). Honors Projects in Accounting. Paper 3.