CEO compensation and earnings management: Does gender really matters?

Harris, Oneil; Karl, J. Bradley; Lawrence, Ericka R.

doi:10.1016/j.jbusres.2019.01.013

Cited by 107 publications

(108 citation statements)

References 72 publications

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“…Another theory (drawing insights from behavioral, economic and psychology theories) underpinning female directors' monitoring efficacy is that female directors are more conservative and risk-averse than their male counterparts are (Powell and Ansic 1997;Martin et al 2009;Huang and Kisgen 2013;Faccio et al 2015;Liu et al 2016;Harris et al 2019;Kao et al 2020;Zalata et al 2019a;Tang et al 2020) and, therefore, they are less likely to allow managerial opportunism for fear of being caught. In addition, based on social (e.g., ethical, moral development and social role theories) theories-female directors are more ethically sensitive than male directors (i.e., Owhoso 2002;Simga-Mugan et al 2005;Lund 2008;Ibrahim et al 2009;Wang and Clift 2009;Sarin and Wieland 2016) and, thus, they are less likely to be tolerant of managerial opportunism than male directors are.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Gender diversity and earnings management: the case of female directors with financial background

Zalata

Ntim

Alsohagy

et al. 2021

Rev Quant Finan Acc

105

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Past evidence generally suggests that the presence of female directors on corporate boards tends to improve earnings quality due to these directors’ superior monitoring abilities. However, it is not clear which characteristics and skills of female directors drive such abilities. In this paper, we focus on the financial background of female directors, an area which remains largely unexplored in existing literature. The results show that the participation of female directors with relevant financial background improves earnings quality more than the participation of female directors without such background. In addition, our findings suggest that only female directors possessing relevant financial background and having fewer outside directorships are able to mitigate earnings management and therefore overcommitting expert female directors with more outside directorships would diminish their monitoring ability. We did not find any evidence suggesting that female directors without relevant financial background are able to mitigate earnings management, irrespective of their outside directorships or tenure. We interpret our findings within a theoretical framework that draws on a number of economic and social theories. The results are generally robust after controlling for potential endogeneity problems.

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Section: Theoretical Frameworkmentioning

confidence: 99%

Gender diversity and earnings management: the case of female directors with financial background

Zalata

Ntim

Alsohagy

et al. 2021

Rev Quant Finan Acc

105

View full text Add to dashboard Cite

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“…Another argument prompting our expectation is the finding that risk aversion among women discourages earnings management practices only in environments of lower equitybased compensation (Harris et al, 2019), which is more common in emerging countries than in developed countries (Albuquerque and Miau, 2013).…”

Section: Uncertainty Avoidancementioning

confidence: 82%

National culture and earnings management in developed and emerging countries

Viana

Lourenço

Ohlson

et al. 2021

JAEE

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PurposeThis study investigates how the association between national culture and earnings management compares between developed and emerging countries.Design/methodology/approachThe empirical analysis relies on a sample of 6,313 firm-year observations from 11 emerging markets and 27,605 firm-year observations from 22 developed countries. The authors use ordinary least squares regression methods to test the hypotheses of the study.FindingsBased on Hofstede's (2011) cultural dimensions, the authors find that firms from countries with a higher level of uncertainty avoidance and individualism are less likely to engage in earnings management, but the effect of uncertainty avoidance (individualism) is more (less) pronounced in the emerging countries. Moreover, the authors demonstrate that firms from emerging (developed) countries with higher levels of power distance and masculinity are less (more) likely to engage in earnings management. Finally, the authors find evidence of a trade-off between accruals-based and real earnings management in firms from countries with greater long-term orientation and an indulgence cultural dimension.Originality/valueThis paper adds to the literature by theoretically discussing and empirically analysing the role that developed and emerging countries' development plays on the effect of national culture on earnings management.

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“…The purpose of managers taking an action is to provide a positive picture regarding company performance because financial reports are used as a reflection of the manager's ability and effectiveness in managing the company (Harris et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

Employee Stock Option Plan (ESOP) Effect on Earnings Management

Wulansari¹,

Harahap²,

Maharani³

2021

Advances in Economics, Business and Management Research

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This study aims to determine the effect of ESOP on earnings management. The populations of this study were all companies listed on the Indonesia Stock Exchange for the period 2015-2017. The sample was determined by purposive sampling technique and obtained 30 company's annual reports as the sample. The data collection method used a secondary data documentation technique that was obtained from the website. Data analysis was performed by using panel data regression analysis. The results showed that the ESOP had no effect on Earnings Management.

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CEO compensation and earnings management: Does gender really matters?

Cited by 107 publications

References 72 publications

Gender diversity and earnings management: the case of female directors with financial background

Gender diversity and earnings management: the case of female directors with financial background

National culture and earnings management in developed and emerging countries

Employee Stock Option Plan (ESOP) Effect on Earnings Management

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