BOARD ATTRIBUTES AND AUDIT EFFECTIVENESS: GENDER DIVERSITY AS A MODERATOR

Abstract

This study investigates the impact of board characteristics on audit quality, focusing on the moderating role of female directors in non-financial companies listed on the Karachi Stock Exchange (KSE-100) from 2019 to 2023. Using secondary data from 70 companies, the research examines board independence, female directors, and board size as key variables, with firm size and auditor fees as controls. Employing correlation analysis and GMM regression, results reveal that gender diversity significantly enhances the positive effect of board independence on audit quality. The findings highlight the importance of inclusive boards and recommend promoting female participation to strengthen governance and audit outcomes. This study offers valuable insights for policymakers and corporate leaders on fostering gender diversity to improve audit effectiveness. Future research could extend to financial firms, other governance factors, and the long-term impact of diverse boards on financial performance and stakeholder trust