Gender Differences in Financial Reporting Decision-Making: Evidence from Accounting Conservatism
53 Pages Posted: 24 Nov 2009 Last revised: 9 May 2014
There are 4 versions of this paper
Gender Differences in Financial Reporting Decision-Making: Evidence from Accounting Conservatism
Gender Differences in Financial Reporting Decision-Making: Evidence from Accounting Conservatism
Gender Differences in Financial Reporting Decision-Making: Evidence from Accounting Conservatism
Gender Differences in Financial Reporting Decision-Making: Evidence from Accounting Conservatism
Date Written: September 9, 2009
Abstract
This paper investigates the effect of CFO gender on corporate financial reporting decision-making. Focusing on firms that experience changes of CFO from male to female, the paper compares the firms’ degree of accounting conservatism between pre- and post-transition periods. We find that female CFOs are more conservative in their financial reporting. In addition, we find that the relation between CFO gender and conservatism varies with the levels of various firm risks such as litigation risk, default risk, systematic risk, and CFO specific risk such as job security risk. We further find that risk-aversion of female CFOs is associated with less equity-based compensation, lower firm risk, higher tangibility level, and lower dividend payout level. Overall, the study provides strong support for the notion that female CFOs are more risk averse than male CFOs, which leads female CFOs to adopt more conservative financial reporting policies.
Keywords: Accounting Conservatism, Gender, CFO, Risk-Averse
JEL Classification: M41, J16
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Corporate Boards and Bank Loan Contracting
By Qiang Wu, Bill Francis, ...
-
Corporate Boards and Bank Loan Contracting
By Bill B. Francis, Iftekhar Hasan, ...
-
Gender Differences in Financial Reporting Decision-Making: Evidence from Accounting Conservatism
By Bill Francis, Iftekhar Hasan, ...
-
Enjoying the Quiet Life Under Deregulation? Evidence from Adjusted Lerner Indices for U.S. Banks
By Michael Koetter, James W. Kolari, ...
-
Handling Losses in Translog Profit Models
By Jaap W.b. Bos and Michael Koetter
-
A Note on the Assumed Distributions in Stochastic Frontier Models
-
The Impact of CFO Gender on Bank Loan Contracting
By Qiang Wu, Bill Francis, ...
-
The Impact of CFO Gender on Bank Loan Contracting
By Bill B. Francis, Iftekhar Hasan, ...
-
Overinvestment and Underinvestment Problems: Determining Factors, Consequences and Solutions
By Alfio Cariola, Maurizio La Rocca, ...