Financial Fraud, Independent Female Directors and CEO Power

Nafisah Yami and Jannine Poletti-Hughes ()
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Nafisah Yami: Accounting Department, College of Business Administration, King Saud University, Riyadh 12372, Saudi Arabia
Jannine Poletti-Hughes: Management School, University of Liverpool, Grove Building, Liverpool L69 7ZH, UK

JRFM, 2022, vol. 15, issue 12, 1-24

Abstract: This paper investigates the effect of female directors on financial fraud, focusing on the role of independent female directors and their demographics, such as experience, financial expertise, and audit committee membership. We find that independent female directors have a negative and significant influence on financial fraud, which is enhanced by their experience and financial expertise. The positive effect is also significant for those female directors that are members of the audit committee and have financial expertise. Independent female directors offset the increased likelihood of fraud in the presence of powerful CEOs, suggesting that the impact of their contribution is more valuable when there is managerial entrenchment.

Keywords: financial fraud; gender diversity; independent female directors; CEO power (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jjrfmx:v:15:y:2022:i:12:p:575-:d:992175

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