Female business leaders and the incidence of fraud litigation

Lenard, Mary Jane; Yu, Bing; York, Emily; Wu, Shengxiong

doi:10.1108/mf-04-2016-0123

Cited by 21 publications

(14 citation statements)

References 42 publications

(59 reference statements)

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“…This result also supports the social feminist theory, which suggests that the inherent dissimilarity between women and men does not mean that women are inferior to men; men and women might develop differently but with equal effective qualities. This result is also consistent the findings of Ittonen et al (2016) and Lenard et al (2017), who found that FACM decreases the occurrence of income manipulation through DA.…”

Section: Audit Committee Attributessupporting

confidence: 92%

Audit committee attributes and cosmetic accounting in Nigeria

Bala

Amran

Shaari

2019

MAJ

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Purpose The literature on the influence of audit committees (ACs) and cosmetic accounting (CSA) is scarce. This paper aims to examine the influence of AC attributes on CSA and how this relationship is moderated by the audit price (AUPR). Design/methodology/approach The study used pooled logistic regressions to analyse 624 firm-year observations of listed companies in Nigeria from 2008 to 2016. Findings The results show that AC financial accounting expertise, AC legal expertise and female AC membership were negatively related to CSA. The negative relationship is highly pronounced when a firm incurs higher audit fees. Results for the robustness checks were similar, even with changes to the measurements of dependent and independent variables and alternative estimation. Practical implications This study can benefit policymakers and regulators, enabling them to better appreciate the importance of AC attributes and AUPR in curtailing artificial manipulation and enhancing financial reporting quality. Social implications This study can benefit policymakers and regulators, enabling them to better appreciate the importance of AC attributes and AUPR in curtailing artificial manipulation and enhancing financial reporting quality. Originality/value The findings provide an initial insight into the moderating effect of AUPR on the relationship between AC attributes and CSA.

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Section: Audit Committee Attributessupporting

confidence: 92%

Audit committee attributes and cosmetic accounting in Nigeria

Bala

Amran

Shaari

2019

MAJ

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“…Thiruvadi (2012) states that corporate decisions and audit committees' effectiveness are better achieved in the existence of female directors. The risk averse behavior of women plays a significant role in minimizing fraudulent financial reporting (Lenard et al, 2017). The high level of commitment to ethical policies and procedures minimizes the chances where companies may be involved in litigation and fraudulent financial reporting.…”

Section: Board Characteristicsmentioning

confidence: 99%

The efficiency of corporate boards and firms’ audit fees: the case of the FTSE financial institutions

Nehme

Jizi

2018

PAR

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Purpose The quality of financial reporting for the financial institutions is vital for the public, as the negative consequences of manipulated financial statements will not only affect shareholders but also the regulators’ reputation and the society at large. The purpose of this paper is to assess the association between different corporate governance mechanisms and their impact on audit and reporting quality. The gender factor is introduced from a diverse boards’ perspective to highlight any impact of female presence on the quality of financial statements. Design/methodology/approach The authors examine a sample of financial institutions listed on the FTSE-350 index for the years 2011 to 2015. The financial sector has its own and different regulations, and financial reporting framework and auditors are expected to behave into more scrutiny. Bloomberg database is used to obtain governance and financial data, while firms’ annual reports are used to collect audit fees and audit committee information. A panel data regression is used to test hypotheses. The authors also control for unobservable heterogeneity, reverse causality and endogeneity. Findings The results suggest that boards with larger size and higher independence pay higher audit fees to enhance the monitoring capacity and protect the wider group of stakeholders. The results also show that women on boards are likely to reduce the risk of manipulated financial statements, as women are more inclined toward truthfulness, cautiousness and conservatism. In addition, the reported results show that audit committees with more independent members are more inclined toward obtaining higher quality audit to enhance firm’s reporting quality. Originality/value Given the recent governments’ intervention to avoid financial institutions’ negative impact on the economy, this study is relevant and provide policymakers insights into the existing relationships between audit fees and financial institutions’ governance structure.

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“…Weisbach and Hermalin [12] suggested the women who play an important role in calming the flames of war between shareholders and managers, thereby increasing shareholder value. Later, Lenard et al [13] found that the presence of female leaders (on the board or in senior management) lowers the likelihood of lawsuits caused by financial reporting fraud. In synthesis of above arguments, it can be concluded that gender diversity contributes to the steady development of a company.…”

Section: Reduce the Conflicts Among Stakeholdersmentioning

confidence: 99%

The Impact of Female Monitoring Effect and Executive Effect on Corporate Performance

Wei-hui¹

2021

Proceedings of the 2021 International Conference on Enterprise Management and Economic Development (ICEMED 2021)

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This paper examines the association between gender diversity and firm performance for Chinese listed companies. Gender diversity effect is divided into monitoring effect and executive effect. The former one refers to woman as an independent director, while the later one is identified as woman as a high-position manager in company. In a sample of Chinese companies that issued IPOs since 2016, this study shows that, on average, female independent directors have no significant impact on firm-performance. However, there is a strong correlation between the number of women executives and corporate return on equity. It could be taken to suggest that Chinese listed companies do benefit from increasing gender diversity in the senior management teams, which could complement their rather poor corporate governance practices.

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Female business leaders and the incidence of fraud litigation

Cited by 21 publications

References 42 publications

Audit committee attributes and cosmetic accounting in Nigeria

Audit committee attributes and cosmetic accounting in Nigeria

The efficiency of corporate boards and firms’ audit fees: the case of the FTSE financial institutions

The Impact of Female Monitoring Effect and Executive Effect on Corporate Performance

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