Purpose This study aims to investigate whether the presence of female directors with specific attributes has an effect on earnings quality in a patriarchal emerging country with a collectivistic culture and a substantial gender equality gap and where the majority of companies are controlled by large business groups. Design/methodology/approach The current study uses a unique hand-collected data set that covers all non-financial companies listed on the Borsa Istanbul between the years 2009 and 2017, using the GMM method to overcome potential omitted variables and reverse causality problems. Findings The current study demonstrates that the presence of female directors on company boards is not associated with earnings management. Similar results are obtained for the percentage of female directors with specific attributes such as busyness, professional expertise and audit committee membership. Surprisingly, the results suggest that there is a negative (positive) relationship between the percentage of female directors that are affiliated (unaffiliated) with controlling business groups and earnings management. Originality/value The current study tests the relationship between the presence of female directors and earnings management in a cultural and institutional setting that is substantially different from countries where the majority of previous research on female directors has been conducted. In addition, this study puts a special emphasis on female director affiliation and provides evidence that contradicts the expectation regarding the direction of the relationship between the percentage of affiliated female directors and earnings management.

Purpose This study aims to investigate whether female directors have an effect on company financial performance in a patriarchal emerging country that has a collectivistic culture with a substantial gender equality gap and is characterized with a paternalistic management culture. In addition, it aims to investigate whether the affiliations of female directors matter performance-wise in a setting where the majority of the companies are ultimately controlled by large business groups including families. Design/methodology/approach The current study uses a unique hand-collected data set that covers all non-financial public companies quoted at the Borsa Istanbul between the years 2009 and 2017. To investigate the relationships between the presence and ratio of female directors and company financial performance, the current study uses the pooled ordinary least squares method, as well as the firm-fixed effects method to overcome potential omitted variables problems and various generalized method of moments methods to overcome potential reverse causality problems. Findings The findings of the current study demonstrate that the presence and percentage of female directors both have a positive effect on company financial performance in a cultural setting where the opposite might be expected. They also present evidence suggesting that the effect becomes larger as the level of the independence of female directors becomes greater. Originality/value The current study demonstrates that the presence of female directors on boards has a positive effect on company financial performance, even in a cultural setting that is very different from those of countries where the majority of previous studies on female directors are conducted on. In addition, it demonstrates how company financial performance varies with the level of the affiliation of female directors.

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This study investigates demographic diversity in the boards of public firms quoted at Borsa Istanbul. The findings show that female directors are neither less educated nor less professionally qualified than male directors. However, consistent with the glass ceiling arguments, the percentage of female directors that are CEOs or chairmen is lower compared to male directors. Also, a lower percentage of them are independent and serve on audit committees. The findings also show that a lower percentage of foreign directors are independent, busy and serve on audit committees compared to Turkish directors. In addition, directors that are CEOs, busy directors or independent directors are younger. However, chairmen of firms are older. Lastly, the findings show that firms with foreign directors have lower total advice quality, compared to firms with no foreign directors. However, firms with female directors do not have a significantly different advice quality, compared to firms with no female directors.