From Critical Mass to 'Voice' - The Effect of Gender Diversity on Financial Reporting Quality

61 Pages Posted: 15 Dec 2016 Last revised: 7 Mar 2018

See all articles by Dorota Dobija

Dorota Dobija

Kozminski University

Aneta Hryckiewicz

Goethe University of Frankfurt; Kozminski University

Karolina Puławska

Kozminski University

Date Written: March 5, 2018

Abstract

Over the last decade, regulators have undertaken considerable efforts to increase the number of women on corporate boards. Nevertheless, research has reported mixed evidence that diversity adds value to a company. Taking a sample of all Polish companies listed on Warsaw Stock Exchange, we investigate the effect the presence of women on supervisory boards on the quality of financial reporting. Our findings support the policy that diversity of the board matters. We show that companies may improve their financial reporting quality by appointing more women to their boards or by giving them a "voice" as chair of the supervisory board. A "voice" may be especially useful when the critical mass effect cannot be achieved. Finally, we also test the characteristics of women as board members. Our results are robust regarding other control variables, industry specifics, and endogeneity issues.

Keywords: corporate governance, women, diversity, management board, supervisory board

JEL Classification: M19, M41, M42

Suggested Citation

Dobija, Dorota and Hryckiewicz, Aneta and Puławska, Karolina, From Critical Mass to 'Voice' - The Effect of Gender Diversity on Financial Reporting Quality (March 5, 2018). Available at SSRN: https://ssrn.com/abstract=2885789 or http://dx.doi.org/10.2139/ssrn.2885789

Dorota Dobija

Kozminski University ( email )

ul. Jagiellonska 57/59
Warsaw, 03-303
Poland

Aneta Hryckiewicz

Goethe University of Frankfurt ( email )

House of Finance, Grüneburgplatz 1
Frankfurt am Main, DE Hessen 60323
Germany

Kozminski University ( email )

Accounting Department
ul. Jagiellonska 57/59
Warsaw, 03-303
Poland
(22) 519 21 69 (Phone)

Karolina Puławska (Contact Author)

Kozminski University ( email )

ul. JagielloDska 57/59
Warsaw, 03-303
Poland

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