The long-term effects of female board representation on accounting quality: Causal evidence

Mahmoud Ahmed ()
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Mahmoud Ahmed: Sohag University

International Journal of Disclosure and Governance, 2023, vol. 20, issue 2, No 1, 109-118

Abstract: Abstract This paper investigates how women’s representation on corporate boards affects financial reporting quality. Drawing on a discussion of existing research, I argue that increasing women’s representation on boards reduces undue CEO influence over the board, and thereby, accounting quality will improve. Using a difference-in-difference (DiD) approach, this paper documents how increasing female representation increases accounting quality. This result holds only in the long run as females gain more experience in the boardroom. In addition, I show that the effect of female representation on accounting quality is attenuated for larger firms and larger boards. This is consistent with the notion that the effect of female representation is likely to be stronger when the information friction is higher. These findings challenge the conventions that underscore the importance of board diversity for today’s firms.

Keywords: Women’s representation; Board of directors; Accounting quality (search for similar items in EconPapers)
JEL-codes: G34 G38 J15 J20 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:pal:ijodag:v:20:y:2023:i:2:d:10.1057_s41310-021-00109-1

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DOI: 10.1057/s41310-021-00109-1

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