The Effects and the Mechanisms of Board Gender Diversity: Evidence from Financial Manipulation

Wahid, Aida Sijamic

doi:10.1007/s10551-018-3785-6

Cited by 249 publications

(188 citation statements)

References 51 publications

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“…Moreover, Barua et al (2010) reported that companies with female CFOs have earnings of a greater quality and such companies are substantially associated with an improvement of accounting conservatism in the financial reporting (Francis et al, 2015). Abbott et al (2012) and Wahid (2018) argue that gender diversity on the board of directors could result in the board making decisions of a higher quality through an increase in interactions and consideration of different points of the view. They found that gender diversity on the board of directors reduces the likelihood of the incidence of financial statements restatement.…”

Section: Empirical Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…Prior research examined the relationship between audit committee characteristics (such as independence, size, expertise, and the frequency of audit committee meetings) and financial restatements (Abbott et al, 2004;Carcello et al, 2011;Lary & Taylor, 2012, Mohammad et al, 2018. Furthermore, Abbott et al (2012) and Wahid (2018) studied the effect of board gender diversity on financial restatements. Nonetheless, the question of whether the presence of women on audit committee is associated with restatements remains unsolved.…”

Section: Introductionmentioning

confidence: 99%

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Audit committee gender diversity and financial reporting: evidence from restatements

Oradi

Izadi

2019

MAJ

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Purpose The purpose of this paper is to investigate the association between gender diversity on the audit committees and the incidence of financial restatements. Design/methodology/approach Using a sample of 683 firm-year observations from Iranian listed companies for the period 2013 to 2017, this paper uses a logistic regression model to examine a research hypothesis related to the association between the presence of female members on the audit committee and the incidence of financial restatements. Findings After controlling for other restatement-related factors, the authors find that the presence of at least one female member on audit committees reduces the likelihood of the incidence of financial restatements. Robustness tests also confirmed this result. Moreover, the additional analyses show that independent and financial expert female members on audit committees are more strongly associated with a reduction in financial restatements. Further, the results suggest that the presence of female members on the audit committee can increase the likelihood of hiring higher quality auditors. Generally, the findings are consistent with the literature on gender diversity which suggests that women perform better in a monitoring role, are more conservative and make more ethical decisions. Practical implications The findings of this study could help with the understanding of broader participation of female directors on company boards and subgroups such as the audit committee, and of the improvement in corporate governance. Moreover, the findings can be of particular interest to monitoring authorities and policy makers in developing countries and send positive signals to them regarding the recommendation or requirement of gender diversity as a part of corporate governance mechanisms. Originality/value The present study contributes to the extant literature by providing empirical evidence on the effect of audit committee gender diversity on financial restatements. Furthermore, this study provides evidence on the more effective oversight and greater ability of independent and financial expert female directors, which has been significantly disregarded in the previous studies.

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Section: Empirical Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Audit committee gender diversity and financial reporting: evidence from restatements

Oradi

Izadi

2019

MAJ

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“…The evidence suggests that firms with females on the board commit fewer financial reporting mistakes and engage in less fraud to such an extent that females improve the board's function through their impact on group dynamics (Wahid, 2018). In addition, males and females differ in many ways, such as cognition, thought, emotion, and work style.…”

Section: Introductionmentioning

confidence: 99%

The effects of female executives on corporate philanthropy in China

Guang

et al. 2018

Corp Soc Responsibility Env

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This paper investigates the relationship between female executives and corporate philanthropy in China with a sample of 1,944 listed A-share Chinese companies selected from the Shanghai and Shenzhen security markets from 2014 to 2016. The results show that regarding corporate philanthropic behavior, existing female executives or top managers (chairperson or CEO) who are female will stimulate philanthropy. In the scale of corporate philanthropy, existing female executives have no significant effect on the scale of philanthropy, whereas the proportion of female executives has a promoting effect on the scale of philanthropy. In addition, the nature of the actual controller of corporations and the degree of industry competition influence female executives' tendency to promote corporate philanthropy. Existing female executives in nonstate-controlled corporations are more likely to promote philanthropy than those in state-controlled corporations. Existing female executives in corporations facing a normal degree of industry competition promote philanthropy more than those in corporations with a strong or weak degree of industry competition.

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“…Research consistently indicates that corporations with more women on their boards outperform those with less: worldwide, shares of corporations with over $10 billion of market capitalization, and with women board members, outperformed comparable businesses with all‐male boards by 26% over six years (Credit Suisse Research Institute, 2012). Corporations with more women board members exhibited less fraud, corruption, and bribery; engaged in fewer battles with shareholders (DeHaas, Akutagawa & Spriggs, 2019; Lee, Marshall, Rallis, & Moscardi, 2015); transparently disclosed stock prices (Gul, Srinidhi, & Ng, 2011); and had fewer financial reporting errors (Wahid, 2018). Consequently, institutional investors have demanded more gender diversity.…”

Section: Performance Benefitsmentioning

confidence: 99%

Getting on Board: A Critical Analysis of Women on International Corporate Boards

Haley¹,

Haley²,

Markova³

2019

Board Leadership

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Usha C.V. Haley, Ph.D., is the W. Frank Barton Distinguished Chair in International Business and professor of management at Wichita State University. George T. Haley, Ph.D., is professor of marketing at the University of New Haven. Gergana Markova, Ph.D., is associate professor of management at Wichita State University. In this article, the authors discuss the status of women on international corporate boards and offer recommendations to achieve gender parity.

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The Effects and the Mechanisms of Board Gender Diversity: Evidence from Financial Manipulation

Cited by 249 publications

References 51 publications

Audit committee gender diversity and financial reporting: evidence from restatements

Audit committee gender diversity and financial reporting: evidence from restatements

The effects of female executives on corporate philanthropy in China

Getting on Board: A Critical Analysis of Women on International Corporate Boards

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