Female directors, earnings management, and CEO incentive compensation: UK evidence

Harakeh, Mostafa; Elgammal, Walid; Matar, Ghida

doi:10.1016/j.ribaf.2019.05.001

Cited by 86 publications

(113 citation statements)

References 116 publications

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“…Institutional female directors on boards play an important role in managerial monitoring and remuneration policies, thus affecting the corporate governance system [37]. The presence of female directors on boards also reduces the level of fraudulent financial reporting and enhances sustainability accounting practices [38,39].…”

Section: Female Directors and Corporate Governancementioning

confidence: 99%

Does Board Gender Diversity Bring Better Financial and Governance Performances? An Empirical Investigation of Cases in Taiwan

Wang

2020

Sustainability

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Gender diversity, one of the core streams of top management team (TMT) diversity research, poses a theoretical argument valuable for firms—whether gender diversity among board members can lead to improved performance. Increased research attention on the relationship between gender diversity and the financial and governance performance of firms has produced inconclusive results. This study shapes the gender diversity of corporate boards by defining six compounding elements, which is the major contributor to the literature of gender diversity. This study aims to provide a more complete and precise assessment of the impact of gender diversity on a firm’s performance and corporate governance performance from the Taiwanese experience. The evidence in Taiwan suggests that increased board gender diversity does not have a positive effect on financial and governance performance. Only the ratio of female independent directors is found to have a significantly positive association with a firm’s performance, supporting prior findings that directors with greater independence are better able to perform their monitoring function and thus contribute to performance. The results also demonstrate that female directors having concurrent posts is a critical factor in enhancing corporate governance performance. Female directors with prior experience as serving directors or supervisors in other companies can offer diverse opinions and network ties, thus contributing to improved cohesion and corporate governance. The findings of this research can contribute to both literature and practice in board gender diversity issues and can serve as an empirical basis for enterprises in optimizing their board composition.

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Section: Female Directors and Corporate Governancementioning

confidence: 99%

Does Board Gender Diversity Bring Better Financial and Governance Performances? An Empirical Investigation of Cases in Taiwan

Wang

2020

Sustainability

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“…;Harakeh, El-Gammal, & Matar (2019) found a negative relationship between women in top management and earnings management.…”

mentioning

confidence: 97%

Women on boards and earnings management: What really matters?

Hala

2019

Jurnal Keuangan Dan Perbankan

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The diversity of gender and income conservatism has been intriguing topics over the last decade. The effect of women who are more likely to be financially conservative than men will bring impact on the practices of conservative accounting, particularly when determining revenues for corporate governance. Therefore, we investigate the effects of women leaders in corporate business and their impacts on earnings management. The population of the study includes companies indexed in the Indonesia Stock Exchange, except for banking corporates. By using purposive sampling, 341 companies were selected for observation within six years. Total population sampling is 2046 data (firmyears). Hypothesis testing employed the multiple regression model on panel data with the Ordinary Least Square (OLS) approach. The estimation result of the Jones Model indicates women in top supervisory have no significant effect on earnings management while women in top management have a negative significant effect on earnings management. In addition, the hypothesis testing with the Kothari model demonstrates a negative significant effect of both women in top supervisory and women in top management toward earnings management. Therefore, we justify that women in top supervisory and women in top management bring prominent contributions to corporate business mainly in the financial sector, particularly in the improvement of financial reports by reducing the likelihood of earnings management practices.

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“…Previous studies relating to the influence of gender of the board of directors on earnings management conducted by Hala (2019) found that women in upper management had a negative effect on earnings management. This is also supported by research conducted by Harakeh et al (2019) and Kim et al (2017). The opposite is obtained from research conducted by Ye et al (2010) found that there is no difference in earnings quality in firms managed by men and women.…”

Section: Introductionmentioning

confidence: 64%

“…The presence of women in firm leaders also indicates the existence of gender diversity in firm leaders that can prevent specific individuals or groups from dominating the decision-making process (Lakhal et al, 2015). This is also supported by research conducted by Hala (2019) and Harakeh et al (2019), who found that women in upper management can reduce earnings management. Kim et al (2017) also found that female in management board had a negative effect on earnings management H 2 : More female presence on the board of directors has…”

Section: Female In Board Of Directors and Earnings Managementmentioning

confidence: 75%

Female in board and earnings management: Evidence in Indonesia non-financial firms

Sofian

Wijaya

2020

J. Keuang. dan Perbank.

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Female directors, earnings management, and CEO incentive compensation: UK evidence

Cited by 86 publications

References 116 publications

Does Board Gender Diversity Bring Better Financial and Governance Performances? An Empirical Investigation of Cases in Taiwan

Does Board Gender Diversity Bring Better Financial and Governance Performances? An Empirical Investigation of Cases in Taiwan

Women on boards and earnings management: What really matters?

Female in board and earnings management: Evidence in Indonesia non-financial firms

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