Audit Quality and Family Ownership: The Mediating Effect of Boards’ Gender Diversity

Fatma Zehri ()
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Fatma Zehri: Accounting Department, Business College, Al Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh 12477, Saudi Arabia

JRFM, 2025, vol. 18, issue 2, 1-20

Abstract: This paper investigates the critical role of female directors on the boards of Saudi-listed companies and how they influence the relationship between the demand for higher audit quality and family ownership. The results indicate that female directors fully mediate the relationship between audit quality and family ownership. This suggests that the involvement of female directors on boards may enhance the demand for higher audit quality in family-owned firms. These findings corroborate both agency theory, family business, and stakeholder theoretical background. From a practical standpoint, this study offers valuable insights for investors, policymakers, and regulators. It underscores the importance of increasing female representation on the boards of Saudi family-owned firms to promote effective governance and improve organizational transparency.

Keywords: auditor reputation; audit fees; ownership structure; gender diversity; mediation (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
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