Impactful Female Directors and Earnings Management: The Moderating Effect of Ownership Concentration

Mujeeb Saif Mohsen Al-Absy ()
Additional contact information
Mujeeb Saif Mohsen Al-Absy: Accounting and Financial Science Department, College of Administrative and Financial Science, Gulf University, Sanad 26489, Kingdom of Bahrain

Administrative Sciences, 2023, vol. 13, issue 5, 1-15

Abstract: The aim of this study was to examine the moderating effect of ownership concentration (OC) on the relationship between impactful female directors and earnings management (EM). The study concentrated on firms with the lowest positive earnings, measured by return on assets. The results showed that OC positively moderated the association between impactful female directors and accrual earnings management (AEM). With the moderating effect of OC, impactful female directors became positively associated with AEM. In terms of real earnings management (REM), the results showed that OC weakened the significant negative relationship between impactful female directors and REM that was found in the direct regression. With the moderating effect of OC, impactful female directors became insignificantly associated with REM. The study is extremely beneficial to policymakers, stakeholders, researchers, and society. It provides empirical findings that could help all parties to re-evaluate the role of the board of directors, specifically impactful female directors, in mitigating EM. The results highlight the impact of the majority shareholders, introduced by agency theory II, an issue that requires more solutions from regulators.

Keywords: board of directors; gender equality; ownership concentration; earnings management (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2076-3387/13/5/129/pdf (application/pdf)
https://www.mdpi.com/2076-3387/13/5/129/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jadmsc:v:13:y:2023:i:5:p:129-:d:1143153

Access Statistics for this article

Administrative Sciences is currently edited by Ms. Nancy Ma

More articles in Administrative Sciences from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().