Does women on board affect the socially responsible firms’ effectiveness of internal control?

This study examines the relationship between corporate social responsibility (CSR) and the auditor’s commitment to internal control which strengthens the internal control system and reduces fraud. We further investigate the moderating role of gender diversity to validate the effectiveness of internal control in socially responsible firms. The logit model is employed based on 15,511 firm-year observations during 2004–2013. The findings suggest that the internal control effectiveness is positively associated with corporate conducts in social responsibility, and gender diversity strengthens the relationship between CSR and internal control effectiveness, validating that women on board indeed increases corporate transparency and board accountability.