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<p>This study empirically investigates the association between corporate social responsibility (CSR) performance and audit fees and examines whether board gender diversity moderates this association. Additionally, the study explores which of the two primary functions of female directors—monitoring vs advisory—has a significant impact on CSR-audit pricing relationship. Using a sample of Malaysian listed firms from 2017 to 2021, we find that firms with higher CSR ratings incur higher audit fees. However, board gender diversity negatively moderates the relationship between CSR ratings and audit fees, supporting the <i>supply-side argument</i> regarding the role of female directors in CSR–audit fee relationship. Furthermore, our findings reveal that female directors in a monitoring (advisory) position positively (negatively) moderate the CSR–audit pricing relationship. Our results remain robust even after accounting for self-selection bias and endogeneity concerns. To the best of our knowledge, this study is the first of its kind to examine the CSR–audit fees association in the context of board gender diversity and functional roles of female directors. The results underscore the impact of CSR polices on the integrity of financial reports, contributing to a deeper understanding of audit pricing determinants. Additionally, they highlight the critical role of female directors in mitigating audit fees for firms with higher CSR ratings.</p>

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Corporate social responsibility and audit fees: the advisory and monitoring roles of board female directors

  • 期刊论文

  • 发表日期：

    2025年7月31日

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  • Redhwan Al-Dhamari,
  • Alkebsee Radwan,
  • Mohammad Abedalrahman Alhmood

摘要

This study empirically investigates the association between corporate social responsibility (CSR) performance and audit fees and examines whether board gender diversity moderates this association. Additionally, the study explores which of the two primary functions of female directors—monitoring vs advisory—has a significant impact on CSR-audit pricing relationship. Using a sample of Malaysian listed firms from 2017 to 2021, we find that firms with higher CSR ratings incur higher audit fees. However, board gender diversity negatively moderates the relationship between CSR ratings and audit fees, supporting the supply-side argument regarding the role of female directors in CSR–audit fee relationship. Furthermore, our findings reveal that female directors in a monitoring (advisory) position positively (negatively) moderate the CSR–audit pricing relationship. Our results remain robust even after accounting for self-selection bias and endogeneity concerns. To the best of our knowledge, this study is the first of its kind to examine the CSR–audit fees association in the context of board gender diversity and functional roles of female directors. The results underscore the impact of CSR polices on the integrity of financial reports, contributing to a deeper understanding of audit pricing determinants. Additionally, they highlight the critical role of female directors in mitigating audit fees for firms with higher CSR ratings.