Female Directors and Earnings Management: Evidence from UK Companies

Posted: 13 Apr 2015

See all articles by Zakaria Ali Aribi

Zakaria Ali Aribi

University of Central Lancashire - Lancashire School of Business and Enterprise

Date Written: January 1, 2015

Abstract

Since the gender diversity of boards and reporting of earnings are two most debated issues in the corporate world, the paper examined how the presence of women directors on the corporate board influence earnings management practices. We found that firms with a higher number of female and independent female directors are adopting restrained earnings management practices in the UK. We further made a distinction between high and low debt firms, and the outcomes reveal that female directors have a positive effect on the earnings management in low debt firms. The paper contributes to the debate on gender diversity on boards, and its impact on the use of accounting discretion in financial reporting.

Keywords: Earnings Management, Female Directors, UK

Suggested Citation

Aribi, Zakaria Ali, Female Directors and Earnings Management: Evidence from UK Companies (January 1, 2015). International Review of Financial Analysis, 2015. Available at SSRN: https://ssrn.com/abstract=2593342

Zakaria Ali Aribi (Contact Author)

University of Central Lancashire - Lancashire School of Business and Enterprise ( email )

Preston, PR1 2HE
United Kingdom

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