The Investigation of Gender Diversity’s Impact on The Directors Board's on the likelihood of Internal Control Weaknesses

    Internal control is a director’s board duty in which its proper and effective type ensures a relative assurance of the implementation of the company's policies as well as an effective audit field. Therefore, as much as possible, it should create and implement appropriate internal control, which also examination of the impact of the board's gender diversity on this trend and shows differences in the behavior of men and women. The presence of a woman's representative on the board reduces the board's coherence and, as a result, makes the control and monitoring process more precise. In this study, Dawson's gender socialization theory is used to explain the moral difference between two groups of women and men. For the purpose of this study, the data of 152 companies listed in Tehran Stock Exchange during the period of 2011-2016 were tested using logit regression analysis. The findings confirm the negative impact of the presence of at least one female representative in the board composition on likelihood of weakness in corporate internal controls. Accordingly, the presence of female delegate on the board is expected to create an environment in which the board's homogeneity disappears and the control and monitoring process becomes more precise.