Examining the effect of audit committee gender and cost of equity on earnings sustainability

The process of profit measurement and its result has an important role in the management of the company and is also of special importance for the users of financial statements. Since the calculation of the profit of the companies is affected by the estimation methods of accounting and the preparation of financial statements is the responsibility of the management of the commercial unit, it is possible for the management to manage the profit due to the various reasons mentioned above. Therefore, the purpose of this study is the effect of the gender of the audit committee and the cost of equity on the sustainability of earnings. The statistical research population of companies admitted to Tehran Stock Exchange and the studied sample includes 152 admitted companies during the years 2017 to 2018. The research method is descriptive and in terms of the relationship between the variables, it is causal-correlation, and in terms of the objective, it is applied and in terms of the event, it is post-event. The regression method and panel data as well as the fixed effects model were used to process and test the hypotheses. The results of the analysis of the research hypotheses showed that the cost of equity has a negative and significant effect on the stability of profits, and the gender of the audit committee has a negative and significant effect on the stability of profits.