Gender Diverse Boardrooms and Earnings Manipulation: Does Democracy Matter?
Evangelos G. Varouchas (),
Stavros E. Arvanitis and
Christos Floros
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Evangelos G. Varouchas: Department of Accounting and Finance, Hellenic Mediterranean University, 71410 Heraklion, Crete, Greece
Stavros E. Arvanitis: Department of Accounting and Finance, Hellenic Mediterranean University, 71410 Heraklion, Crete, Greece
Christos Floros: Department of Accounting and Finance, Hellenic Mediterranean University, 71410 Heraklion, Crete, Greece
Risks, 2025, vol. 13, issue 7, 1-15
Abstract:
We investigate the influence of boardroom gender diversity on earnings management. Drawing on a sample of European firms over the 2010–2023 period, we document an inverted U-shaped nexus between boardroom gender heterogeneity and earnings manipulation. Moreover, we also find that the Democracy Index moderates the curvilinear nexus by flattening the inverted U-curve and shifting the inflection point leftward. Our findings are consistent across various measures of earnings management and different econometric approaches, offering valuable insights for European policymakers.
Keywords: gender diversity; democracy; earnings management; Europe (search for similar items in EconPapers)
JEL-codes: C G0 G1 G2 G3 K2 M2 M4 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jrisks:v:13:y:2025:i:7:p:126-:d:1690930
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