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The impact of CFO gender on corporate fraud: Evidence from China

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  • Luo, Jin-hui
  • Peng, Chenchen
  • Zhang, Xin

Abstract

This study investigates the impact of CFO gender on financial-reporting-related corporate fraud. Building on findings in psychology and sociology that women are more risk-averse and ethical than men, we hypothesize that firms with female CFOs are less likely to commit risky and unethical fraud than otherwise similar firms with male CFOs. Our findings, based on a sample of Chinese listed firms from 2004 to 2014, provide support for our prediction. Further, we find that the negative association is more pronounced when female CFOs have higher levels of education and/or external job opportunities. These findings hold true in a battery of robustness checks.

Suggested Citation

  • Luo, Jin-hui & Peng, Chenchen & Zhang, Xin, 2020. "The impact of CFO gender on corporate fraud: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 63(C).
    • Handle: RePEc:eee:pacfin:v:63:y:2020:i:c:s0927538x20301189
    DOI: 10.1016/j.pacfin.2020.101404
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    7. Xin Xu & Feng Xiong & Zhe An, 2023. "Using Machine Learning to Predict Corporate Fraud: Evidence Based on the GONE Framework," Journal of Business Ethics, Springer, vol. 186(1), pages 137-158, August.
    8. Madhurima Basu & Anubha Shekhar Sinha, 2021. "Unravelling the Glass Ceiling Phenomenon Using Critical Hermeneutics," Working papers 426, Indian Institute of Management Kozhikode.
    9. Achakzai, Muhammad Atif Khan & Peng, Juan, 2023. "Detecting financial statement fraud using dynamic ensemble machine learning," International Review of Financial Analysis, Elsevier, vol. 89(C).
    10. Dai, Yunhao & Chao, Yang & Wang, Li, 2021. "The brain gain of CFOs in China: The case of analyst forecasts," International Review of Financial Analysis, Elsevier, vol. 75(C).
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