Female CFOs and accounting fraud: Evidence from China

Liao, Jing; Smith, David; Liu, Xutang

doi:10.1016/j.pacfin.2019.01.003

Cited by 68 publications

(58 citation statements)

References 37 publications

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“…As suggested by Firth et al (2007), Abbott et al (2012), Feng and Johansson (2018) and Liao et al (2019a), managerial ownership, female directors, director education background, top executives' age and tenure are important factors that influence firm fraudulent behaviours. To further examine the robustness of our results, we control for the managerial attribute variables discussed above and re-estimate Equation (1).…”

Section: Including Additional Controlsmentioning

confidence: 98%

Top executives’ early‐life experience and financial disclosure quality: impact from the Great Chinese Famine

Yao

Wang

Sun

et al. 2020

Accounting & Finance

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This study investigates the impact of top executives’ Great Chinese Famine experience on firm financial disclosure quality. We find firms led by top executives who experienced the great famine in early life are less likely to conduct fraudulent financial reporting. The famine effect is more pronounced in state‐owned enterprises (SOEs), smaller‐cap, lower‐profitability level firms and firms with weaker external monitoring. Further evidence suggests that top executives with great famine experience show greater tendency to implement secured debt structure, effective internal control and spend less on entertainment and travel costs, which in turn reduce the likelihood of fraudulent financial reporting.

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Section: Including Additional Controlsmentioning

confidence: 98%

Top executives’ early‐life experience and financial disclosure quality: impact from the Great Chinese Famine

Yao

Wang

Sun

et al. 2020

Accounting & Finance

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“…In other words, when female executives can affect the accounting choices to a certain degree, their ethical attitudes would restrain the CEOs' unethical behavior essentially. For another example, Liao et al (2019) confirm that firms with female CFOs or CEOs are significantly less likely to engage in accounting fraud by using a sample of Chinese listed firms for the period from 2003 to 2015.…”

Section: Impact Mechanisms Of Female Executives On Executive Pay Levelmentioning

confidence: 84%

How can Female Executives Shape the Effectiveness of Executive Compensation?- A Multi-Dimensional Approach

Zhang

Yang

2019

Journal of Social Economics Research

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This paper attempts to build and analyze a conceptual model to systematically study the impact mechanism of female executives on the following dimensions of executive compensation including pay-performance sensitivity, executive pay level, executive pay component and pay gap from multiple theoretical perspectives of managerial power, principal-agent and employee discrimination theory, etc. The paper concludes as follows: (1) seven specific impact mechanisms of female executives on executive payperformance sensitivity have been identified including enhancing monitoring role, lowering insider trading, increasing remuneration disclosure and adopting more balanced setting rules; (2) six specific impact mechanisms of female executives on executive pay level have been clarified such as reducing corporate tax avoidance, mitigating unethical earnings manipulation behavior or accounting fraud behavior and choosing lower level of leverage ratio；(3) it is found that female executives would enhance executive pay components diversity by adding additional pay components to compensation package, mainly including social responsibility-based pay, environmental performance-based pay, innovation performance-based pay and reducing extra unethical pay due to financial statement fraud or earnings manipulation and (4) female executives would enlarge executive-employee compensation pay gap, moderate the gender compensation gap among employees and narrow executive compensation gap due to the female executives' need for affiliation, etc. Taking 499 Chinese A-share listed companies selected in the corporate social responsibility rating report issued by Rankings CSR Ratings from 2012-2016 as the research sample, we examine the above theoretical propositions by adopting the multiple regression method based on OLS. Contribution/Originality: This paper's primary contribution is finding seven specific impact mechanisms of female executives on executive pay-performance sensitivity, six specific impact mechanisms of female executives on executive pay level and female executives would enhance executive pay components diversity.

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“…This happens because company executives tend to do anything to maximize the wages they will get, so the drive for cheating becomes greater. (Liao et al, 2019) on the influence of gender on the CFO accounting fraud in China period 2003 to 2015 gives the result that the CFO of women has a negative influence on accounting fraud in the company. The research of (Sun et al, 2013) on the effect of gender CFO on accounting reporting fraud shows that female CFO is less related to accounting reporting fraud.…”

Section: Resultsmentioning

confidence: 99%

“…(Harris et al, 2019) also stated that executives namely female CEOs are involved in lower manipulation cases compared to male CEOs, because the nature of women is more likely to avoid risks and adhere to ethical standards. (Liao, Smith, & Liu, 2019) examined the influence of gender on CFO accounting fraud in China from 2003 to 2015. The results of his study mentioned the results that female CFO has a negative influence on accounting fraud in companies.…”

mentioning

confidence: 99%

The effect of compensation on accounting fraud with the genders variety of directors as a moderation variable

Indiraswari

Subroto²,

Subekti³

2020

IJRBS

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The purpose of this research is to empirically prove the effect of executive compensation on the accounting fraud and the influence of directors' gender in moderating the effect of executive compensation on accounting fraud. The sample of this study is obtained from a manufacturing sector public company listed in the Indonesia Stock Exchange. The analysis technique uses multiple regression methods and moderated regression analysis (MRA). There are 394 observations of data obtained during 2016-2018 by using the purposive sampling method. The results of this study indicate that executive compensation has no effect on accounting fraud and the directors' gender does not moderate the effect of executive compensation on accounting fraud. The implication of this research theory shows that accounting fraud is not related to Positive Accounting Theory and Gender Socialization Theory. The practical implication of this research is that to prevent accounting fraud in companies, there is no need to pay attention to executive compensation and the directors' gender

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Female CFOs and accounting fraud: Evidence from China

Cited by 68 publications

References 37 publications

Top executives’ early‐life experience and financial disclosure quality: impact from the Great Chinese Famine

Top executives’ early‐life experience and financial disclosure quality: impact from the Great Chinese Famine

How can Female Executives Shape the Effectiveness of Executive Compensation?- A Multi-Dimensional Approach

The effect of compensation on accounting fraud with the genders variety of directors as a moderation variable

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