Gender Differences and Executive Financial Decision-Making: Management Earnings Forecasts

2012 American Accounting Association Annual Meeting

Posted: 10 May 2012

See all articles by Jessica L. Nowlin

Jessica L. Nowlin

Virginia Commonwealth University-Department of Accounting

Ruth W. Epps

Virginia Commonwealth University - Department of Accounting

Date Written: May 9, 2012

Abstract

This study examines the effects of gender on executive financial decision-making as it relates to management earnings forecast error. The primary question addressed is: do female and male executives behave differently when issuing management earnings forecasts? Additionally, the following sub-questions are addressed: (1) do female executives issue more accurate earnings forecasts than male executives and (2) are female executives more conservative than male executives when issuing earnings forecasts? Using the executive gender data from listed companies between years 2001-2010, we examine the earnings forecasts made by female and male executives. Our results are consistent with gender structure approach theory indicating significant differences between male and female CEOs/CFOs earnings forecast behaviors are due to executive specific effects rather than gender effects. The additional analysis also demonstrates that female executives are positively associated with cumulated abnormal returns.

Keywords: gender differences, financial decision-making, management earnings forecasts, forecasts errors

JEL Classification: M40, M41, M49, J16

Suggested Citation

Nowlin, Jessica L and Epps, Ruth W., Gender Differences and Executive Financial Decision-Making: Management Earnings Forecasts (May 9, 2012). 2012 American Accounting Association Annual Meeting, Available at SSRN: https://ssrn.com/abstract=2055477

Jessica L Nowlin

Virginia Commonwealth University-Department of Accounting ( email )

Richmond, VA 23284
United States
614-596-7890 (Phone)

Ruth W. Epps (Contact Author)

Virginia Commonwealth University - Department of Accounting ( email )

301 W Main Street
Richmond, VA 23284-4000
United States

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