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Gender differences and managerial earnings forecast bias: Are female executives less overconfident than male executives?

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  • Lonkani, Ravi

Abstract

This study examines whether firms with female executives forecast company earnings more conservatively. Consistent with the selectivity hypothesis, the results reveal firms with female CEOs tend to make conservative earnings forecasts in a perceived positive situation and firms with a higher percentage of female directors on the board are more likely to forecast earnings conservatively in a perceived negative situation. The conservativeness of female executives is not caused by lower management ability. This conservative behavior is not caused by personal factors such as military status, level of education, or area of study.

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  • Lonkani, Ravi, 2019. "Gender differences and managerial earnings forecast bias: Are female executives less overconfident than male executives?," Emerging Markets Review, Elsevier, vol. 38(C), pages 18-34.
    • Handle: RePEc:eee:ememar:v:38:y:2019:i:c:p:18-34
    DOI: 10.1016/j.ememar.2018.11.012
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    More about this item

    Keywords

    Gender differences; Managerial earnings forecast; Selectivity hypothesis; Firm performance; Conservative behavior;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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