Exploring Gender and Corporate Governance in an Emerging Market: Bridging Female Leadership, Earnings Management and Tax Avoidance

Binh Duong Mai, Duy Khanh Pham, Thanh Van Pho, Gia Quyen Phan and Tran Thai Ha Nguyen ()
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Binh Duong Mai: Faculty of Accounting and Auditing, Van Lang University, Ho Chi Minh City 70000, Vietnam
Duy Khanh Pham: Faculty of Finance—Accounting 1, Post and Telecommunications Institute of Technology, Hanoi 10000, Vietnam
Thanh Van Pho: Global Studies Program, University of Massachusetts Lowell, Lowell, MA 01854, USA
Gia Quyen Phan: Faculty of Accounting and Finance, Nha Trang University, Nha Trang City 650000, Vietnam
Tran Thai Ha Nguyen: Faculty of Business Administration and Accountancy, Khon Kaen University, Khon Kaen 40002, Thailand

JRFM, 2025, vol. 18, issue 7, 1-29

Abstract: This study highlights the pivotal role of women in corporate governance and their potential influence on achieving sustainable goals, particularly in the context of emerging countries. Using the two-step System-Generalized Method of Moments (GMM) with the dynamic short panel data of 351 nonfinancial listed companies in Vietnam from 2010 to 2022, this research examines the dynamics between earnings management and tax avoidance, focusing on the moderating role of women on the board of directors. The results confirm that both accrual-based and real earnings management are positively associated with corporate tax avoidance. However, there is a significant negative relationship between female representation on the board and tax avoidance, as well as a significant moderation of the relationship between earnings management and tax avoidance. This study reinforces that female leadership contributes to reducing earnings management and tax avoidance through improved monitoring and governance of corporate ethical activities, emphasizing the importance of strategically empowering women in leadership roles. The implications of this study are given to minimize harmful financial practices and align corporate strategies with ethical practices.

Keywords: earnings management; tax avoidance; female leadership; corporate governance; Vietnam (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
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