Do female directors affect accounting conservatism in European Union?

Artikel

Gender diversity on corporate boards is an important governance issue. Prior research suggests that female directors tend to be more ethical, conservative, socially responsible, independent and risk averse. Thus, female directors may con-tribute to improve board performance and earnings quality. Using a sample of 3.808 non-financial European Union listed companies from 2011 to 2020, this study examines the effect of female directors on accounting conservatism in European Union listed firms, and whether their influence is more evident when a critical mass of female directors is reached. The study also investigates whether gender equality index moderates the relationship between female directors and accounting con-servatism. We document a positive and significant relationship between female directors and accounting conservatism. Firms that have reached a critical mass of female directors on their board tend to report more conservative earnings com-pared to firms with a ratio of female directors less than a critical mass. This study further suggests that the impact of female directors on accounting conservatism is stronger in the presence of a higher gender equality index. The results of this study may contribute to the ongoing debate on the optimal level of gender diversity in corporate governance and its impact on financial reporting practices.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: Cogent Business & Management ; ISSN: 2331-1975 ; Volume: 10 ; Year: 2023 ; Issue: 2 ; Pages: 1-22

Klassifikation und Themen

• Klassifikation: Management
• Thema: female directors ; accounting conservatism ; critical mass theory ; Europe

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Alves, Sandra
• Ereignis: Veröffentlichung
• (wer): Taylor & Francis
• (wo): Abingdon
• (wann): 2023

Weitere Informationen

• DOI: doi:10.1080/23311975.2023.2219088
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ