The association between board diversity, earnings management and firm performance in Kuwait: A research agenda

Abstract

This paper aims to examine the consequences of board diversity. The objectives are to measure the impact of gender, age, national diversity on earnings management (EM). This research study raises the following questions: Does board diversity affect earnings management and firm performance? Has the 2013 Kuwait Corporate Governance Code impacted on board diversity on earnings management, beside firm performance? The research uses data from 103 non-financial Kuwaiti listed companies in the period from 2010 to 2017. The data is collected from the companies’ data from secondary sources such as their annual reports. The data analysis methods are correlation, multi-regression and robust regression. Earnings management was measured using the model modified by Jones (1995) and Kothari et al. (2005). Firm performance measured by ROA, ROE, Tobin’s Q and total shareholder return. The independent variables are gender diversity, age diversity, nationality diversity, board size, board independent and role duality. Control variables are firm size, industry type, total debt, total revenue, oil price, percentage change oil price, gold price, the percentage change of gold price and, ROA

The effects of corporate governance mechanisms on earnings management: Empirical evidence from Moroccan listed firms

“…Our study results also show that women's presence on the board mitigates earnings management (β=-0.104419; p= 0.0024). This result is in agreement with those of Alqatan (2019), Debnath and Roy (2019), Kyaw et al (2015), Mnif andCherif (2020), andTriki Damak (2018). Indeed, women on the board of directors are more motivated.…”

“…Previous research papers have studied this factor using the number or percentage of female directors actively operating within the governance body by examining the relationship between their presence within the board composition and earnings management (Alqatan, 2019;Debnath and Roy, 2019;Kyaw et al 2015;Mnif and Cherif, 2020;Triki Damak, 2018). These researchers showed that earnings manipulation is lower in companies with higher female board representation.…”

The Impact of Board Independence, Gender Diversity and Nationality Diversity on Firm Performance

“…Gender diversity on a board is viewed as being good corporate governance (Gallego-Alvarez et al, 2010;Alqatan, 2019). This is mainly argued due to: (1) the addition of unique characteristics, abilities and talent to the board; (2) the enhancement of the problem-solving skills of a board, and the possibility of looking at problems from different perspectives, which provides alternative solutions and enhances firm performance (Rose, 2007).…”

Pengaruh Usia, Pendidikan, Etnis, Tenure Dan Board Ownership Terhadap Manajemen Laba Pada Perusahaan Manufaktur Di Bursa Efek Indonesia 2014-2018

“…Hasil penelitian yang membahas pengaruh usia dewan direksi terhadap manajemen laba telah dilakukan oleh Alqatan (2019) yang menemukan bahwa usia direksi berpengaruh positif terhadap manajemen laba pada perusahaan yang go public di Indonesia. Hasil yang penelitian yang berbeda ditemukan oleh Zwet, (2017) serta hasil penelitian Govindan et al (2021), yang menemukan bahwa usia yang dimiliki dewan direksi berpengaruh negatif terhadap kegiatan manajemen laba.…”

“…Usia dapat mempengaruhi kinerja seorang dalam perusahaan yang kemudian dapat mempengaruhi nilai perusahaan dalam membuat laporan keuangan. Alqatan (2019) mengungkapkan usia dewan direksi akan mendorong anggota dewan direksi muda atau pun tua untuk saling bertukar fikiran sebelum mengambil sejumlah keputusan strategis untuk kemajuan perusahaan. usia akan menciptakan sinergi yang kuat antara anggota dewan direksi muda atau pun tua untuk melakukan sejumlah tindakan untuk menyelamatkan reputasi perusahaan termasuk kecenderungan dewan direksi untuk mendukung tindakan manajemen laba yang dilakukan manajer.…”