 Are all female directors equal? Incentives and effectiveness of female independent directorsZhiyan Cao, Arun Upadhyay and Hongchao Zeng Journal of Banking & Finance, 2024, vol. 162, issue C Abstract: We examine how differences in the career incentives of female directors impact their monitoring effectiveness in the context of financial reporting. We find that female independent directors who are sitting senior executives in other firms (executive FIDs) improve financial reporting quality while other female independent directors (non-executive FIDs) do not. Exogenous departure of executive FIDs leads to deterioration of financial reporting quality. Empirical approaches addressing reverse causality and selection problems support our primary findings. We also find that executive FIDs who are younger or not CEOs are more effective in improving financial reporting quality. These findings support the notion that varying career incentives of female directors contribute to the differences in their board monitoring performance. Finally, executive FIDs’ effective monitoring of financial reporting is more prominent in firms with higher monitoring costs and when they serve on more prestigious boards. Keywords: Board gender diversity; Female directors; Career incentives; Primary profession; Board monitoring effectiveness; Financial reporting quality (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:162:y:2024:i:c:s037842662400030x DOI: 10.1016/j.jbankfin.2024.107110 Access Statistics for this article Journal of Banking & Finance is currently edited by Ike Mathur More articles in Journal of Banking & Finance from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.