Female CFOs and accounting fraud: Evidence from China

Jing Liao, David Smith and Xutang Liu

Pacific-Basin Finance Journal, 2019, vol. 53, issue C, 449-463

Abstract: We investigate the influence of female chief financial officers (CFOs) on accounting fraud. Using a sample of Chinese listed firms for the period from 2003 to 2015, we find firms with female CFOs are significantly less likely to engage in accounting fraud. Further we find the negative relationship between female CFOs and accounting fraud is less significant in state-owned enterprises (SOEs), where political concerns are more pronounced. Additional tests show that the negative relationship is significant in firms with gender-mixed boards rather than male-only boards. In addition, the relationship is more pronounced when the firm has a less powerful CEO and when the CFO simultaneously holds a directorship in the same firm. Our analysis addresses both the selection and treatment concerns.

Keywords: Female CFO; State control; Corporate governance; Accounting fraud (search for similar items in EconPapers)
JEL-codes: G30 K42 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (25)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:53:y:2019:i:c:p:449-463

DOI: 10.1016/j.pacfin.2019.01.003

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