Top executive gender diversity and financial reporting quality |
| |
Institution: | 1. Department of Financial Economics, Accounting and Operations Management, Faculty of Business Sciences and Tourism, University of Huelva, Plaza de la Merced, 11, 21071 Huelva Spain;2. Department of Civil Law, Ecclesiastical State Law of the State and Roman Law, Faculty of Law, University of Malaga, Campus de Teatinos, 29071 Málaga Spain;3. Department of Economics, Faculty of Business Sciences and Tourism, University of Huelva, Plaza de la Merced, 11, 21071 Huelva Spain |
| |
Abstract: | We examine whether gender diversity of chief executive and chief financial officers (CEOs and CFOs) is associated with financial reporting quality. The CEOs and CFOs of publicly traded companies are both required to certify the appropriateness of their financial statements and annual disclosures. We argue that gender diverse dyads (groups) of executives can bring different perspectives and professional skepticism to financial reporting. Using a sample of different CEO/CFO gender dyads during 2006–2019, we postulate and find evidence of higher accruals quality among firms led by gender-diverse dyads compared to accruals quality reported by firms led by all-male CEO/CFO pairs. Additional analyses reveal that the auditors of firms with gender-diverse executive dyads issue audit reports later, charge higher audit fees, and are more likely to be one of the Big 4 firms. These findings support the view that top executive gender diversity enhances financial reporting quality, which has important implications for corporate governance mechanisms. |
| |
Keywords: | Executive diversity Accruals quality Audit report lag Audit fees CEO CFO |
本文献已被 ScienceDirect 等数据库收录! |
|