scholarly journals Board Gender Diversity and Earnings Management: Evidence from China

2021 ◽  
Author(s):  
Yihao Li
Keyword(s):  
Earnings Management ◽  
Gender Diversity ◽  
Board Gender Diversity

Board gender diversity, corporate governance, and earnings management

2019 ◽  
Vol 35 (1) ◽  
pp. 37-60 ◽  
Author(s):  
Nurlan Orazalin
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Management Practices ◽  
Gender Diversity ◽  
Policy Implications ◽  
Annual Reports ◽  
Public Companies ◽  
Content Type ◽  
Weak Evidence ◽  
Board Gender Diversity

Purpose The purpose of this study is to examine whether board gender diversity and other board characteristics affect earnings management practices of top public companies in Kazakhstan. Design/methodology/approach The study analyzes data of top public companies for the period 2010-2016. Data on corporate governance were manually collected from annual reports and investment memorandums, and financial data were collected from audited financial statements. Findings The empirical results show that companies with greater board gender diversity are more effective in constraining earnings management. The findings also indicate that companies with larger boards adopt a more restrained approach to earnings management practices, thus supporting the theoretical framework of the study. However, the results provide weak evidence of the association between board independence and earnings quality. Originality/value This study is the first to investigate the relationship between gender diversity and earnings management in emerging markets such as Kazakhstan that offers managerial and policy implications.

The effect of earnings management on shareholder value and the role of board gender diversity

2020 ◽  
Vol 32 (3) ◽  
pp. 323-334
Author(s):  
Viput Ongsakul ◽  
Pornsit Jiraporn ◽  
Young Sang Kim
Keyword(s):  
Stock Market ◽  
Earnings Management ◽  
Terrorist Attack ◽  
Gender Diversity ◽  
September 11 ◽  
Shareholder Wealth ◽  
Market Reactions ◽  
Content Type ◽  
Board Gender Diversity ◽  
Stock Market Reactions

Purpose This study aims to investigate whether shareholders are convinced by earnings management. This study also explores how board gender diversity (the presence of female directors on the board) may influence the extent to which shareholders are convinced by earnings management. Design/methodology/approach The authors estimate the stock market reactions to the September 11 terrorist attack using the standard event study methodology. The authors then run a cross-sectional analysis to investigate whether the market reactions are influenced by the extent of earnings management. Furthermore, the authors test how board gender diversity affects the degree to which earnings management influences the stock market reactions. Findings The study results show that the market reactions to the attack are substantially mitigated for firms that exercise more upward discretionary accruals, implying that earnings management is successful in convincing shareholders. Additional analysis corroborates the results, including propensity score matching, instrumental variable analysis and using Oster’s (2019) method for testing coefficient stability. Crucially, the authors find that board gender diversity helps shareholders see through earnings management better. The presence of female directors significantly weakens the extent to which shareholders are persuaded by earnings management. Originality/value This study is the first to explore the effect of earnings management on shareholder wealth using the September 11 terrorist attack. The research design is less vulnerable to endogeneity and is thus much more likely to show a causal effect of accounting accruals on shareholder wealth.

scholarly journals Corporate governance, Islamic governance and earnings management in Oman

2017 ◽  
Vol 7 (2) ◽  
pp. 190-224 ◽  
Author(s):  
Mohamed I. Elghuweel ◽  
Collins G. Ntim ◽  
Kwaku K. Opong ◽  
Lynn Avison
Keyword(s):  
Earnings Management ◽  
Gender Diversity ◽  
Data Sets ◽  
Corporate Boards ◽  
Content Type ◽  
Audit Firm ◽  
Beliefs And Values ◽  
Corporate Earnings ◽  
Board Gender Diversity ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of corporate (CG) and Islamic (IG) governance mechanisms on corporate earnings management (EM) behaviour in Oman. Design/methodology/approach The authors employ one of the largest and extensive data sets to-date on CG, IG and EM in any developing country, consisting of a sample of 116 unique Omani listed corporations from 2001 to 2011 (i.e. 1,152 firm-year observations) and a broad CG index containing 72 CG provisions. The authors also employ a number of robust econometric models that sufficiently account for alternative CG/EM proxies and potential endogeneities. Findings First, the authors find that, on average, better-governed corporations tend to engage significantly less in EM than their poorly governed counterparts. Second, the evidence suggests that corporations that depict greater commitment towards incorporating Islamic religious beliefs and values into their operations through the establishment of an IG committee tend to engage significantly less in EM than their counterparts without such a committee. Finally and by contrast, the authors do not find any evidence that board size, audit firm size, the presence of a CG committee and board gender diversity have any significant relationship with the extent of EM. Originality/value To the best of the authors’ knowledge, this is a first empirical attempt at examining the extent to which CG and IG structures may drive EM practices that explicitly seek to draw new insights from a behavioural theoretical framework (i.e. behavioural theory of corporate boards and governance).

scholarly journals The Effect of Board Characteristics on Real Activities Manipulation in Tunisian Banks

2021 ◽  
Vol 18 (1) ◽  
pp. 47
Author(s):  
Amina Zgarni ◽  
Hassouna Fedhila
Keyword(s):  
Earnings Management ◽  
Board Of Directors ◽  
Gender Diversity ◽  
Real Earnings Management ◽  
Bank Failures ◽  
Governance Mechanisms ◽  
Board Characteristics ◽  
The Board Of Directors ◽  
Financial Scandals ◽  
Board Gender Diversity

The succession of financial scandals and resounding bank failures that characterized the economic environment over the past three decades have given more weight to governance mechanisms. As such, considered to be one of the most important internal governance mechanisms, the board of directors has shown its strengths in controlling earnings manipulation, in particular those linked to real activities. The aim of this paper is to examine the effect of board characteristics on real earnings management. Using panel data econometrics, on all Tunisian commercial banks over the period 2008-2019, we show that board gender diversity has a disciplinary role in real earnings management as measured by discretionary revenue on equity securities. However, we show that board independence increases the real earnings management. As for board size, board duality, as well as the number of meetings carried out per year by the board of directors, we prove that they have no significant effect on real earnings management.

Corporate governance compliance and accrual earnings management in eastern Africa

2018 ◽  
Vol 33 (2) ◽  
pp. 171-191 ◽  
Author(s):  
Nelson M. Waweru ◽  
Ntui Ponsian Prot
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Capital Markets ◽  
Audit Quality ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Eastern Africa ◽  
Annual Reports ◽  
Content Type ◽  
Board Gender Diversity

Purpose The purpose of this paper is to examine whether compliance with corporate governance (CG) requirements has constrained earnings management (EM) for companies listed in Kenya and Tanzania. Design/methodology/approach The sample comprises of 48 companies listed on the Nairobi Stock Exchange and the Dar es Salaam Stock Exchange. The data are collected from annual reports over the period 2005-2014, a total of 480 firm-year observations. Panel data models are used in the analyses. Findings The results show that discretionary accruals (DAs) average about 11.3 per cent, whereas audit quality is negatively and significantly related to DAs. However, board independence, board gender diversity and director share ownership were positively and significantly related to DAs suggesting that CG may not have constrained EM in eastern Africa. Research limitations/implications The findings should be understood within the context that only annual reports and audited financial statements that were filed with Capital Markets Authority (Kenya) and Capital Markets and Securities Authority (Tanzania) are used as source of information. Originality/value The study potentially contributes in three main ways. First, this is the first cross-country analysis that has examined the effect of CG structures on EM in an African context. Second, literature on CG and EM has been extended. Finally, the authors have extended research by observing the limitations of CG in reducing EM in an environment that is experiencing weaknesses in CG structures.

Gender diverse board and earnings management: evidence from French listed companies

2018 ◽  
Vol 9 (3) ◽  
pp. 289-312 ◽  
Author(s):  
Sana Triki Damak
Keyword(s):  
Earnings Management ◽  
Boards Of Directors ◽  
Management Practices ◽  
Gender Diversity ◽  
Generalized Least Squares ◽  
Content Type ◽  
Management Level ◽  
Women On Boards ◽  
The Government ◽  
Board Gender Diversity

Purpose The purpose of this paper is to investigate the influence of board gender diversity on earnings management level and strategy. Design/methodology/approach This study is conducted in the French context where firms are pressured since 2010 to appoint more women on boards. More specifically, this research is based on a sample of 85 companies listed in the SBF120 over 2010-2014. A number of econometric techniques are used including generalized least squares to test the panel regressions. Findings The results suggest that women on boards are effective in their monitoring role. Indeed, the findings show a significant negative effect of board women presence on earnings management practices level. However, there is no empirical evidence that board gender diversity affects the earnings management strategy. Moreover, the results reveal that some control variables influence significantly the earnings management level and strategy. Practical implications The findings support the efforts made by French political bodies to increase gender diversity on corporate boards, and might inspire political actors of other countries to take initiatives to regulate the promotion of women’s appointment on boards of directors. Social implications This paper contributes to the issue of discrimination against women in law and in practice. Indeed, the findings highlight the beneficial effects of women participation in power and decision-making positions. Originality/value This research contributes to the debate around gender diversity on boards. Most prior studies that have analyzed the relationship between gender diversity and earnings management were conducted in a voluntary context of appointing women on boards. This paper extends prior research by addressing this issue differently and in a regulated context: where the government set mandatory quotas for female board representation.

scholarly journals BOARD OF DIRECTOR’S GENDER DIVERSITY AND ITS IMPACT ON EARNINGS MANAGEMENT: AN EMPIRICAL ANALYSIS FOR SELECT EUROPEAN FIRMS

2019 ◽  
Vol 25 (4) ◽  
pp. 634-663 ◽  
Author(s):  
Paolo Saona ◽  
Laura Muro ◽  
Pablo San Martín ◽  
Hugo Baier-Fuentes
Keyword(s):  
Earnings Management ◽  
Empirical Analysis ◽  
Management Practices ◽  
Gender Diversity ◽  
Regulatory System ◽  
Point Of View ◽  
Agency Conflicts ◽  
The European Union ◽  
Board Gender Diversity

From a corporate governance point of view, this paper addresses the question about how board gender diversity influences managerial opportunistic behavior for solving agency conflicts from a sample of European countries. Specifically, we analyzed indexed non-financial companies from Denmark, Finland, France, Germany, Italy, Norway, Portugal, Spain, Sweden, and United Kingdom for the period 2006–2016. Several panel data techniques are used in the empirical analysis to deal with the endogeneity and heterogeneity problems. To the best of our knowledge our research is novel in the literature by providing a multi-country approach in board gender diversity, as well as considering contextual country variables and the role of the regulatory system as determinants of earnings management. Our results confirm the benefits of having a balanced board in terms of gender diversity. An equilibrated board tends to mitigate earnings management practices, reinforcing the value of the laws passed in recent decades in Europe. Our analysis reveals that the regulatory framework regarding board gender diversity established by each country has a determinant role in reaching equality in decision-making positions, as a founding value of the European Union. We provide several policy recommendations from our main findings

Beyond Financial Reporting. Integrated Reporting and its determinants: Evidence from the context of European state-owned enterprises

2019 ◽  
pp. 43-72
Author(s):  
Giuseppe Nicolò ◽  
Gianluca Zanellato ◽  
Francesca Manes-Rossi ◽  
Adriana Tiron-Tudor
Keyword(s):  
Financial Reporting ◽  
Empirical Investigation ◽  
Gender Diversity ◽  
Accounting Standards ◽  
International Accounting Standards ◽  
Integrated Reporting ◽  
Financial Reports ◽  
The Public ◽  
Explanatory Factors ◽  
Board Gender Diversity

Integrated reporting (IR), which aims to overcome the limitations of both tradi-tional financial and stand-alone non-financial reports, has gained momentum as a single comprehensive tool merging financial and non-financial information. Initially conceived for private sector entities, IR is also establishing itself in the public sector context as a vehicle for transparency and accountability. This research offers an empirical investigation of IR practices in the State-Owned Enterprises (SOEs) context. More specifically, the paper investigates the levels of disclosure provided through IR by a sample of 34 European SOEs and explores the effects of potential explanatory factors. The results indicate a fair level of IR disclosure and a trend of reporting information already requested under international accounting standards. The findings also highlight that industry (basic materials and financials) and size positively influence the level of IR disclosure in a particularly strong way, while governance features (board size and board gender diversity) and the provision of external assurance do not exert any impact.

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