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We apply the system GMM regression estimation approach on a matched sample of French firms listed on Euronext Paris during the period 2001-2010 to investigate the relationship between female directors and earnings management by considering statutory and demographic attributes of women directors. Primarily, we find a negative relationship between female directors and the magnitude of earnings management. However, this result does not hold when statutory and demographic attributes of women directors are taken into account, because the assessment of earning quality requires particular competencies and skills. Our findings thus highlight that business expertise and audit committee memberships are key attributes of female directors that promote the effective monitoring of earnings management. In contrast, women leadership and experience are positively related to the level of earnings management. An important implication of our findings is that the decision to appoint females on corporate boards should be based on their statutory and demographic attributes rather than on blind implementation of gender quotas.

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