Gender Differences in Financial Reporting Decision-Making: Evidence from Accounting Conservatism

51 Pages Posted: 18 Mar 2009  

Bill Francis

Rensselaer Polytechnic Institute (RPI) - Lally School of Management & Technology

Iftekhar Hasan

Fordham University - Gabelli School of Business; Bank of Finland

Jong Chool Park

Old Dominion University

Qiang Wu

Rensselaer Polytechnic Institute (RPI) - Lally School of Management

Multiple version iconThere are 4 versions of this paper

Date Written: March, 17 2009

Abstract

This paper investigates the effect of gender on corporate financial reporting decision-making. By focusing on firms that experience changes of CFO from male to female, we compare the firm's degree of reporting conservatism between pre- and posttransition periods. Using various measures of reporting conservatism, we find female CFOs tend to report firm performance more conservatively. Our results also hold after considering the effect of boards of directors, CFO ownership, and concurrent CEO turnover on accounting conservatism. Finally, we find the level of reporting conservatism
declines after firms change their CFOs from female to male. Overall, our study implies female CFOs are more risk-averse than male CFOs so that females CFOs adopt more conservative financial reporting policies.

Keywords: Financial reporting; Gender; Conservatism; CFO; Risk-averse

JEL Classification: M41; J16

Suggested Citation

Francis, Bill and Hasan, Iftekhar and Park, Jong Chool and Wu, Qiang, Gender Differences in Financial Reporting Decision-Making: Evidence from Accounting Conservatism (March, 17 2009). Available at SSRN: https://ssrn.com/abstract=1361791 or http://dx.doi.org/10.2139/ssrn.1361791

Bill Francis

Rensselaer Polytechnic Institute (RPI) - Lally School of Management & Technology ( email )

110 8th St
Troy, NY 12180
United States

Iftekhar Hasan

Fordham University - Gabelli School of Business ( email )

Rose Hill Campus Bronx
New York, NY 10458
United States

Bank of Finland ( email )

P.O. Box 160
Helsinki 00101
Finland

Jong Chool Park

Old Dominion University ( email )

Strome College of Business
2140 Constant Hall
Norfolk, VA 23529
United States

Qiang Wu (Contact Author)

Rensselaer Polytechnic Institute (RPI) - Lally School of Management ( email )

110 8th St
Troy, NY 12180
United States
518-276-3338 (Phone)
518-276-8661 (Fax)

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