Moderating Role of Audit Quality in the Gender Diversity–Reporting Quality Relationship

This study investigates the effect of Board Gender Diversity (BGD) on Financial Reporting Quality (FRQ), with Audit Quality (AQ) as a moderating factor, using a panel of 152 publicly listed Nigerian firms over 2015–2024. The study addresses the growing demand for transparency and accountability in corporate reporting and the need to understand how gender-diverse boards and high-quality audits jointly influence reporting outcomes. Using fixed-effects panel regression with robust standard errors, the study examines BGD, AQ, and their interaction, while controlling for firm size, firm age, leverage, profitability, and industry type. Descriptive statistics reveal that boards have, on average, 23.4% female representation, and firms maintain relatively high reporting quality (mean FRQ = 0.742). Correlation and regression analyses show that BGD positively affects FRQ (β = 0.156, p < 0.05), AQ is positively significant (β = 0.098, p < 0.001), and the interaction term BGD × AQ is significant (β = 0.187, p < 0.01), indicating that audit quality strengthens the positive influence of gender diversity on reporting quality. The findings underscore the importance of combining diverse boards with high-quality auditing to enhance transparency and investor confidence. The study recommends increasing female board representation, engaging reputable auditors, and managing leverage prudently to improve financial reporting quality in Nigerian firms.