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Female executives and earnings management

Author

Listed:
  • Emilia Peni
  • Sami Vähämaa

Abstract

Purpose - The purpose of this paper is to examine the association between earnings management and the gender of the firm's executives. Design/methodology/approach - Panel regressions of discretionary accruals on a set of female executive dummies and firm-specific controls. Findings - The results provide considerable evidence to suggest that firms with female chief financial officers (CFOs) are associated with income-decreasing discretionary accruals, thereby implying that female CFOs are following more conservative earnings management strategies. Research limitations/implications - In general, the findings indicate that gender-based differences in conservatism, risk-aversion, and managerial opportunism may have important implications for financial reporting and corporate governance. Originality/value - This paper extends prior research by addressing the potential effects of female executives on earnings management. The findings reported in this paper provide novel insights to the empirical financial accounting literature.

Suggested Citation

  • Emilia Peni & Sami Vähämaa, 2010. "Female executives and earnings management," Managerial Finance, Emerald Group Publishing, vol. 36(7), pages 629-645, June.
  • Handle: RePEc:eme:mfipps:v:36:y:2010:i:7:p:629-645
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. repec:eco:journ1:2017-02-78 is not listed on IDEAS
    2. Dowling, Michael & Aribi, Zakaria Ali, 2013. "Female directors and UK company acquisitiveness," International Review of Financial Analysis, Elsevier, vol. 29(C), pages 79-86.
    3. repec:eee:spacre:v:15:y:2012:i:2:p:237-255 is not listed on IDEAS
    4. Arun, Thankom Gopinath & Almahrog, Yousf Ebrahem & Ali Aribi, Zakaria, 2015. "Female directors and earnings management: Evidence from UK companies," International Review of Financial Analysis, Elsevier, vol. 39(C), pages 137-146.
    5. Duong, Lien & Evans, John, 2016. "Gender differences in compensation and earnings management: Evidence from Australian CFOs," Pacific-Basin Finance Journal, Elsevier, pages 17-35.
    6. repec:eee:corfin:v:45:y:2017:i:c:p:651-668 is not listed on IDEAS
    7. Dauth, Tobias & Pronobis, Paul & Schmid, Stefan, 2017. "Exploring the link between internationalization of top management and accounting quality: The CFO’s international experience matters," International Business Review, Elsevier, pages 71-88.
    8. Francis, Bill & Hasan, Iftekhar & Wu, Qiang & Park, Jong Chool, 2014. "Gender differences in financial reporting decision-making: Evidence from accounting conservatism," Research Discussion Papers 1/2014, Bank of Finland.

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