Female Director and Earning

Management
Alia Salsabilla Mohd Zuki | 2018463654 | AC703
Earning Management
 The use of accounting techniques to produce financial
reports that present an overly positive view of a
company’s business activities and financial position.

https://www.investopedia.com/terms/e/earnings-management.asp
Board of Director
 The group of people who shareholders choose to manage
a company organization

https://dictionary.cambridge.org/dictionary/english/board-of-directors
Female Directors And Earnings
Management In High-technology Firms

Purpose Findings

To explore whether and how earnings  The paper finds evidence for a
management is affected by the negative relation between the
presence of female directors on the presence of female directors and
board of directors and on the audit
committee earnings management. The findings
indicate that accounting
aggressiveness is affected by the
Design/methodology/approach proportion of women on the
The study employs both a univariate and board of directors. Furthermore,
multivariate analysis approach to the paper find evidences indicating
explore the relation between female that earnings management is lower
directors and earnings management in
high-technology firms.. when either the CEO or the CFO
is a woman.

Gavious, I., Segev, E., & Yosef, R. (2012). Female directors and earnings management in high-technology firms. Pacific Accounting Review (Vol. 24).
Female Executives And Earnings
Management

Purpose Findings

 To examine the association between
earnings management and the gender
of the firm’s executives.
Design/methodology/approach
 The paper uses panel regressions of
discretionary accruals on a set of
female executive dummies and firm-
specific controls.
 The results provide that firms with
female chief financial officers (CFOs)
are associated with income-decreasing
discretionary accruals, thereby
implying that female CFOs are
following more conservative earnings
management strategies.

Peni, E., & Vähämaa, S. (2010). Female executives and earnings management. Managerial Finance, 36(7), 629–645.
Gender Diverse Board And Earnings Management:
Evidence From French Listed Companies
Purpose
 To investigates on the influence of
board gender diversity on earnings
management level and strategy
Design/methodology/approach
 This study is conducted in the French
context where firms are pressured since
2010 to appoint more women on boards.
More specifically, this research is based on
a sample of 85 companies listed in the
SBF120 over 2010-2014. A number of
econometric techniques are used including
generalized least squares to test the panel
regressions.
Triki Damak, S. (2018). Gender diverse board and earnings management: evidence from French listed companies. Sustainability
Accounting, Management and Policy Journal, 9(3), 289–312.
Findings
 The results suggest that women on
boards are effective in their
monitoring role. Indeed, the findings
show a significant negative effect of
board women presence on earnings
management practices level. However,
there is no empirical evidence that
board gender diversity affects the
earnings management strategy.
Moreover, the results reveal that some
control variables influence significantly
the earnings management level and
strategy.
Complementary relationship between female directors
and financial literacy in deterring earnings
management: The case of high-technology firms

Purpose Findings
 Studies the presence of female  gender diversity and financial
directors on the boards of high- literacy as mutually exclusive, and
technology firms has an impact on the suggest that that the two—the
boards' monitoring and oversight of presence of a woman and financial
earnings management. literacy—need to be present in
one person, meaning that the
female director must also be
Design/methodology/approach financially literate, in order to
 Sample consist of 65 high technology firms improve BOD monitoring of firms'
traded on the Tel Aviv Stock Exchange financial reporting. These two
(TASE), which adopted IFRS in 2007. characteristics in one person seem
Sample period extends from 2003 to 2010: to reinforce each other, thereby
the four years prior to the adoption of
IFRS (2003–2006) and the four years encouraging moral commitment
following the adoption of IFRS (2007– and a sense of civic responsibility
2010). among the board members.

Chen, E., & Gavious, I. (2016). Complementary relationship between female directors and financial literacy in deterring earnings management: The
case of high-technology firms. Advances in Accounting, 35, 114–124.
Female directors and earnings management:
Evidence from UK companies

Purpose Findings
 Examined how the presence of
 UK companies, on average, tend to
women directors on the corporate
board influence earnings management be conservatives and prefer to
practices. engage in income-decreasing
(negative) earning managements. It
was found that the firms with a
Design/methodology/approach
higher number of female and
 This paper uses the modified Jones model independent female directors are
(Dechow et al., 1995)2 to estimate current
discretionary accruals. sample for the study adopting restrained earnings
is the UK FTSE 350 index during the
period 2005–2011but have removed the management practices in the UK
categories of regulated, mining and financial
industries due to their unique
characteristics and specific regulations
which may affect the results

Arun, T. G., Almahrog, Y. E., & Ali Aribi, Z. (2015). Female directors and earnings management: Evidence from UK companies. International Review
of Financial Analysis, 39, 137–146. https://doi.org/10.1016/j.irfa.2015.03.002
Conclusion
 Involvement or the presence of female in the board of a
company have significant negative relationship with
earning managements. Company with higher number of
female director tend to adopt restrained or moderate
earning management.