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Exploring Gender and Corporate Governance in an Emerging Market: Bridging Female Leadership, Earnings Management and Tax Avoidance

Author

Listed:
  • Binh Duong Mai

    (Faculty of Accounting and Auditing, Van Lang University, Ho Chi Minh City 70000, Vietnam)

  • Duy Khanh Pham

    (Faculty of Finance—Accounting 1, Post and Telecommunications Institute of Technology, Hanoi 10000, Vietnam)

  • Thanh Van Pho

    (Global Studies Program, University of Massachusetts Lowell, Lowell, MA 01854, USA)

  • Gia Quyen Phan

    (Faculty of Accounting and Finance, Nha Trang University, Nha Trang City 650000, Vietnam)

  • Tran Thai Ha Nguyen

    (Faculty of Business Administration and Accountancy, Khon Kaen University, Khon Kaen 40002, Thailand)

Abstract

This study highlights the pivotal role of women in corporate governance and their potential influence on achieving sustainable goals, particularly in the context of emerging countries. Using the two-step System-Generalized Method of Moments (GMM) with the dynamic short panel data of 351 nonfinancial listed companies in Vietnam from 2010 to 2022, this research examines the dynamics between earnings management and tax avoidance, focusing on the moderating role of women on the board of directors. The results confirm that both accrual-based and real earnings management are positively associated with corporate tax avoidance. However, there is a significant negative relationship between female representation on the board and tax avoidance, as well as a significant moderation of the relationship between earnings management and tax avoidance. This study reinforces that female leadership contributes to reducing earnings management and tax avoidance through improved monitoring and governance of corporate ethical activities, emphasizing the importance of strategically empowering women in leadership roles. The implications of this study are given to minimize harmful financial practices and align corporate strategies with ethical practices.

Suggested Citation

  • Binh Duong Mai & Duy Khanh Pham & Thanh Van Pho & Gia Quyen Phan & Tran Thai Ha Nguyen, 2025. "Exploring Gender and Corporate Governance in an Emerging Market: Bridging Female Leadership, Earnings Management and Tax Avoidance," JRFM, MDPI, vol. 18(7), pages 1-29, June.
    • Handle: RePEc:gam:jjrfmx:v:18:y:2025:i:7:p:342-:d:1683235
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    References listed on IDEAS

    as
    1. Grant Richardson & Grantley Taylor & Roman Lanis, 2016. "Women on the board of directors and corporate tax aggressiveness in Australia," Accounting Research Journal, Emerald Group Publishing Limited, vol. 29(3), pages 313-331, September.
    2. Isaiah Oino & Jonathan Liu, 2022. "Do Female Board Members Influence Corporate Social Responsibility Performance?," IIM Kozhikode Society & Management Review, , vol. 11(2), pages 195-206, July.
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    6. Patten, Dennis M. & Trompeter, Greg, 2003. "Corporate responses to political costs: an examination of the relation between environmental disclosure and earnings management," Journal of Accounting and Public Policy, Elsevier, vol. 22(1), pages 83-94.
    7. Mohammed A. Alhossini & Alaa Mansour Zalata & Sameeh Elmahdy Samaha & Mohamed Hessian, 2024. "Monitoring female directors and earnings management, does corporate governance matter?," Cogent Business & Management, Taylor & Francis Journals, vol. 11(1), pages 2396538-239, December.
    8. Arin Agnesia Thalita & Bambang Hariadi & M Khoiru Rusydi, 2022. "The effect of earnings management on tax avoidance with political connections as a moderating variable," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(5), pages 344-353, July.
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    Cited by:

    1. Vasileios Giannopoulos & Maria Vlachakou & Spyridon Kariofyllas & Ilias Makris, 2025. "Corporate Governance and Tax Avoidance: Evidence from Greek Service-Sector Firms," JRFM, MDPI, vol. 18(10), pages 1-34, September.

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