scholarly journals Women in Board of Directors and Real Earnings Management: Accretive Share Buyback in Malaysia

2017 ◽  
Vol 9 (2) ◽  
pp. 48
Author(s):  
Abdulsalam Saad Alquhaif ◽  
Rohaida Abdul Latif ◽  
Sitraselvi Chandren
Keyword(s):  
Earnings Management ◽  
Board Of Directors ◽  
Gender Diversity ◽  
Real Earnings Management ◽  
Independent Directors ◽  
Women Directors ◽  
Corporate Board ◽  
Corporate World

Gender diversity of boards and reporting of earnings are two most debated issues in the corporate world. In this context, the paper explores how the presence of women directors on the corporate board influence real earnings management through accretive buyback programs. Using a sample of 601 firms’ observations that engage in accretive share buyback from 2010-2015, the findings reveal that existence of women directors on the board is associated with less engagement in accretive share buyback activities. We further find that firms with a higher number of independent directors are less likely to practice real earnings management through accretive buyback programs. Our paper contributes to the debate on gender diversity on boards and its influence on the utilisation of accretive buyback programs as a tool to real earnings management.

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.

Board independence, gender diversity and CEO compensation

2017 ◽  
Vol 17 (5) ◽  
pp. 845-860 ◽  
Author(s):  
Ramzi Benkraiem ◽  
Amal Hamrouni ◽  
Faten Lakhal ◽  
Nadia Toumi
Keyword(s):  
Ceo Compensation ◽  
Gender Diversity ◽  
Joint Effect ◽  
Independent Directors ◽  
Board Independence ◽  
Women Directors ◽  
Content Type ◽  
Corporate Managers ◽  
Board Decision Making ◽  
The Impact

Purpose This paper aims to investigate the joint effect of board independence and gender diversity on the effectiveness of boards in monitoring CEO compensation in a continental European context, i.e. France. Design/methodology/approach Fixed-effect regressions are used to study the impact of board independence, gender diversity and their interaction, i.e. the proportion of female independent directors on the different components of CEO compensation (total, fixed and variable). Findings The authors observe that both the proportions of independent directors and women sitting on the boards positively influence the various components of CEO compensation. However, the interaction of these factors, i.e. the proportion of female independent directors, is negatively associated with CEO compensation. These results suggest that independent women directors improve board effectiveness in monitoring CEO compensation, especially its fixed component. Originality/value The results of this research help to elucidate the importance of women being appointed to boards as independent directors to properly monitor managerial pay. These results provide support to the approach of the French Cope-Zimmerman law of January 2011, which promotes female representation on boards as independent directors to enhance board decision-making. Thus, evidence presented and discussed in this paper should provide useful insights for academics, corporate managers and regulators.

scholarly journals CAN AUDIT COMMITTEE REDUCE REAL EARNINGS MANAGEMENT?

2020 ◽  
Vol 22 (1) ◽  
pp. 139-146
Author(s):  
YULIUS KURNIA SUSANTO ◽  
ARYA PRADIPTA
Keyword(s):  
Earnings Management ◽  
Board Of Directors ◽  
Audit Committee ◽  
Sampling Method ◽  
Negative Influence ◽  
Real Earnings Management ◽  
Manufacturing Companies ◽  
Purposive Sampling ◽  
The Board Of Directors

The objective of research was to give empirial evidence the influence of audit committee and directors on real earnings management (REM). The samples of this research consist of 336 data from 84 public manufacturing companies from 2013 until 2016 and selected by purposive sampling method. The result showed that the audit committee expertise and independence directors have significantly and postive influence on REM. The board of directors have significantly and negative influence on REM. The influence of audit committee tenure, size, meeting on REM is not significantly. The results of this reasearch shows that outsider of the firm like audit committee and independence directors can’t detect REM. The chance for management doing REM. While, board of directors as insider of the firm can detect and reduce REM.

The impact of audit committee on real earnings management: Evidence from Netherlands

2020 ◽  
Vol 4 (1) ◽  
pp. 33-46 ◽  
Author(s):  
Sana Masmoudi Mardessi ◽  
Yosra Makni Fourati
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Real Earnings Management ◽  
Financial Expertise ◽  
Relevant Topic ◽  
And Gender ◽  
The Impact

This paper aims to examine the effect of the characteristics of an audit committee on real earnings management in the Dutch context. Our sample is composed of 80 non-financial companies listed on the Amsterdam Stock Exchange during the period between 2010 and 2017. Four proxies are used to measure audit committee characteristics, namely, audit committee independence, financial expertise, gender diversity, and audit committee meetings. To test our hypotheses, we use a regression model to identify the influence of a set of audit committee characteristics on real earnings management after controlling for firm audit committee size, leverage, size, loss, growth and board size. Our analyses provide evidence that audit committee independence and gender diversity constrain real earnings management. Our findings also suggest that audit committee financial expertise reduces to some extent the likelihood of engaging in real earnings management. To the best of our knowledge, the Dutch context is not yet explored especially following the issue of the long-awaited new Dutch Corporate Governance Code in 2016 which has been updated for a long period in 2008. Therefore, corporate governance is a relevant topic in the Netherlands. This study contributes geographically to the Audit Committee and earnings management literature that examines another possible method, specifically, real earnings management.

Sustainable corporate governance and non-financial disclosure in Europe: does the gender diversity matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Giuseppe Nicolò ◽  
Giovanni Zampone ◽  
Giuseppe Sannino ◽  
Serena De Iorio
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Board Of Directors ◽  
Financial Reporting ◽  
Gender Diversity ◽  
Women Directors ◽  
Theoretical Understanding ◽  
Content Type ◽  
Reporting Practices ◽  
The Impact

PurposeRecent regulatory changes in Europe have promoted non-financial reporting practices (e.g., Directive, 2014/95/EU) and gender diversity in decision-making positions. Special attention is devoted to promoting the gender balance on corporate boards as a key mechanism to enhance corporate governance effectiveness and better address multiple stakeholders' needs. With this in mind, this study intends to examine the impact of boardroom gender diversity on Environmental Social Governance (ESG) disclosure practices in the European listed firms' context.Design/methodology/approachThe study applies different panel data models on an extended sample of 1,392 firms from 21 European Union (EU) countries for six years (2014–2019).FindingsFindings allow to spotlight the positive role exerted by the presence of women directors on the boards in enhancing ESG disclosure, both at the overall and specific (individual ESG scores) level.Research limitations/implicationsPolicymakers and regulators might consider the study's evidence as a stimulus to continue in promoting strategic actions and reforms that foster gender equality and balance in corporate decision-making positions.Practical implicationsCreating a heterogeneous and diversified board of directors may support implementing a “sustainable corporate governance” recently claimed by the EC.Originality/valueThe study contributes to the literature by disentangling the links between gender diversity and ESG disclosure over a period that covers a long season of European regulations and measures that affected both non-financial reporting practices and the board of directors' composition. Accordingly, it can contribute to enhancing the practical and theoretical understanding of the pivotal role that gender diversity may exert in strengthening corporate governance and, in turn, corporate transparency and accountability behaviours about non-financial issues.

Influence of Gender Diversity in Boards on Family and Non-family Businesses Towards Innovation and Creativity

2022 ◽  
pp. 231971452110686
Author(s):  
Hitesh Shukla ◽  
Vibhu Teraiya
Keyword(s):  
Decision Making ◽  
Women Managers ◽  
Family Firms ◽  
Gender Diversity ◽  
Family Businesses ◽  
Independent Directors ◽  
Women Directors ◽  
Women's Participation ◽  
The Impact ◽  
A Company

This article aims to understand better the impact of the diversity of gender in boards on the innovation and creativity of companies in the context of the structure of business—family businesses and non-family businesses. Based on women’s participation in decision-making and family firm literature, we argue that women directors/executives’ impact on decision-making will rely on their relative power and credibility within the board. These dynamics are especially crucial, bringing creativity to family firm’s boardrooms as well. The results show that increases in innovation and creativity with women’s presence in family firms’ boards are due mainly to outsider non-family and insider family women directors/executives. Even after the division of women directors into independent and non-independent directors, the finding suggests that women independent directors have an impact on the company’s innovations. Conversely, women chair minimal effects on the innovation and creativity advances of the businesses. Furthermore, In the family business, the influence of women managers and women independent managers on the innovation and creativity of a company is slightly stronger.

Does gender diversity on boards influence stock market liquidity? Empirical evidence from the French market

2019 ◽  
Vol 19 (4) ◽  
pp. 669-703 ◽  
Author(s):  
Nadia Loukil ◽  
Ouidad Yousfi ◽  
Raissa Yerbanga
Keyword(s):  
Stock Market ◽  
Least Squares ◽  
Gender Diversity ◽  
Market Liquidity ◽  
Independent Directors ◽  
Women Directors ◽  
Content Type ◽  
Female Directors ◽  
Inside Directors ◽  
Stock Market Liquidity

Purpose The purpose of this paper is to examine the gender diversity on boards and its effect on stock market liquidity in French boardrooms. Design/methodology/approach Using a sample of French firms between 2002 and 2012 listed on the Paris Stock Exchange (SBF120), the study uses ordinary least squares and three-stage least squares (3SLS) regressions to address endogeneity concerns on the board gender diversity. Findings The results show that stock market liquidity is positively and significantly associated with the presence of women directors. The authors find that investors’ decisions vary according to their positions in the board: women independent members decrease illiquidity costs, while the presence of female inside directors increases daily trading volume. In addition, the presence of female inside directors increases the firm’s ability to implement better strategies that cope with economic, social and environmental constraints which leads investors to positively react. Surprisingly, the presence of female independent directors reduces company involvement in sustainable development projects. Practical implications The empirical findings contribute to the current debate on the benefits of gender diversity on corporate boards and the effectiveness of gender-quota laws. It shows that appointing insider female’ directors incite investors to trade more stocks while appointing independents ones reduces their trading costs. Social implications This paper shows that the benefits of female directors appointing depend on their independence of management team. Originality/value This study addresses the endogeneity between stock market liquidity, corporate governance and gender diversity. It is the first study to distinguish between the effects of women inside and independent directors on investors’ trading decisions.

Female board directorship and earnings management

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yosra Mnif ◽  
Imen Cherif
Keyword(s):  
Earnings Management ◽  
Family Firms ◽  
Gender Diversity ◽  
Corporate Boards ◽  
Women Directors ◽  
Homogeneous Sample ◽  
Content Type ◽  
Gender Diverse ◽  
Gender Quota ◽  
The Impact

Purpose This paper aims to examine the impact of female board directorship on the extent of earnings management. Design/methodology/approach The research hypotheses have been tested using both univariate and multivariate analyzes based on a sample of 198 firm-year observations from closely-held family firms listed on the SBF 120 over the period 2010–2018. Findings The empirical results first indicate that female board participation reduces the level of earnings management. When looking at women positions in the companies’ boardrooms, the authors reveal that the negative linkage between female board directorship and earnings management remains constant for independent female directors while the opposite holds for their family-affiliated counterparts. Further, the gender quota reform is shown to mitigate the adverse relationship between gender-diverse corporate boards and the extent of earnings management. These results seem sound, as they hold unchanged for the several measures of, both, boardroom gender diversity and earnings management used in the empirical study. In a supplementary analysis, the authors provide evidence that the association between the presence of women directors on the companies’ boards and earnings management depends, in a different way, on the size of the audit firm in a joint auditing context. Originality/value The country and the period considered in this paper are noteworthy characteristics that enhance the value of this research. The present study is relevant because it examines the relationship between female boardroom participation and earnings management using a homogeneous sample of family-owned and -managed companies within which shareholders and board members share identical motives for manipulating earnings in one of the leading countries in the world with regard to family ownership dominance (i.e. France). Moreover, this paper is considered to be very timely, as it explores, contrarily to previous related studies, the years following the implementation of a mandatory gender quota reform in one of the less available countries, to date, that have amended a gender quota law. To the knowledge, besides France, there are a few markets (Norway, Belgium, Finland and Iceland) that have implemented such legislation.

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