دانلود رایگان مقاله انگلیسی فراتر از تنوع جنسیتی: تاثیر ویژگی های خاص مدیران زن بر مدیریت درآمد - الزویر 2018

abstract

We apply the system GMM regression estimation approach to a matched sample of French firms listed on Euronext Paris during the period 2001e2010 in order to investigate the relationship between female directors and earnings management by considering their specific (statutory and demographic) attributes. We first find that the presence of female directors deters managers from managing earnings. However, this finding does not hold when the statutory and demographic attributes of female directors are taken into account, thus showing that the detection and the correction of earnings management require particular competencies and skills. Interestingly, we find that business expertise and audit committee membership are key attributes of female directors that promote the effective monitoring of earnings management. An important implication of our findings is that the decision to appoint women on corporate boards should be based more on their statutory and demographic attributes than on blind implementation of gender quotas. Finally, our supplementary analysis reveals that female CEOs and CFOs are strongly inclined to reduce earnings management.

6. Summary and conclusions

This study extends the literature on the linkage between board gender diversity and earnings management, by considering specific (statutory and demographic) attributes of women directors. Aligned with the notion of the agency theory, statutory diversity indirectly enhances the board's effectiveness in creating value for shareholders by reducing agency cost (Dalton et al., 1998; John & Senbet, 1998). In our case, statutory diversity is also expected to create value by minimizing the likelihood of earnings manipulation by managers. Further, Carter et al. (2003) argue that agency theory (statutory differences of board members) is not enough to demonstrate an actual relationship between board diversity and organizational performance. In this regard, human capital theory states that an individual's demographic attributes (e.g. experience and education level) can enhance cognitive and productive abilities, which benefit the both individual and the organization (Becker et al., 1998). Furthermore, Ben-Amar et al. (2013) propose that the effect of statutory diversity is subject to individual characteristics and demographic attributes of board members. Our study contributes to the literature by providing new insights into the channel (i.e. statutory and demographic attributes) through which female directors impact the extent of earnings management.

We apply the system GMM estimation approach to a matched sample of 394 French firms listed on Euronext Paris during the period 2001e2010 in order to investigate the nature of the relationship between female directors and earnings management by considering the role of statutory and demographic attributes. Consistent with prior studies, our initial findings confirm the existence of a negative link between female directorships and earnings management (Arun et al., 2015; Gavious et al., 2012; Srinidhi et al., 2011). However, when we add specific attributes in regression models, results provide evidence of a positive relationship between female directors and earnings management. Our results show that specific (statutory and demographic) attributes of women directors count more for the effective monitoring of earnings management than simply the presence and/or the percentage of women on the board. In particular, our findings underline that business expertise and audit committee memberships are key attributes of women directors for the detection and correction of earnings management practices.