Influence of Audit Quality on Investment Decisions: Focusing on Board Gender Diversity

Purpose: This study investigates the impact of audit quality on investment decisions, focusing on the moderating role of board gender diversity. By analyzing non-financial firms in South Korea from 2019 to 2023, it explores how audit quality influences investment efficiency. The study aims to provide insights into effective governance practices. Design/methodology/approach: The study uses multiple regression analysis to examine audit quality, board gender diversity, and investment efficiency. The sample includes non-financial firms in South Korea from 2019 to 2023. Audit quality is measured using discretionary accruals, and the role of board gender diversity is analyzed through interaction terms. Findings: Higher audit quality improves investment efficiency by reducing over- and under-investment. Female board members moderate the impact of audit quality, leading to more efficient investment decisions. The results highlight the importance of high-quality audits and diverse boards for enhancing firm performance. Research limitations/implications: The study is limited to non-financial firms in South Korea. Discretionary ac-cruals as a proxy for audit quality have limitations. Future research could include more industries or countries. Originality/value: This study provides evidence of the combined impact of audit quality and board gender diversity. The findings offer insights into regional corporate governance and support the development of effective frameworks.