The governing role of board gender diversity on conditional accounting conservatism and executive remuneration: performance-based versus equity-based remunerations

Abstract This study examines the governing role of gender diversity on the board of directors on conditional accounting conservatism and executive remuneration. Using proprietary data about women representation on the board of directors to investigate the impact on the choice between accounting meth...

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Main Author: Reem Essam Bedeir
Format: Article
Language:English
Published: SpringerOpen 2024-07-01
Series:Future Business Journal
Subjects:
Online Access:https://doi.org/10.1186/s43093-024-00377-7
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author Reem Essam Bedeir
author_facet Reem Essam Bedeir
author_sort Reem Essam Bedeir
collection DOAJ
description Abstract This study examines the governing role of gender diversity on the board of directors on conditional accounting conservatism and executive remuneration. Using proprietary data about women representation on the board of directors to investigate the impact on the choice between accounting methods and the structure of executives remuneration. A sample of listed firms on the London Stock Exchange from 2019 to 2022 is used. The results first document that firms exhibit a higher level of conditional accounting conservatism when women represent a larger fraction of the board. The analyses further establish different relationships between performance-based versus equity-based remunerations and conditional accounting conservatism. Last, the results show that women representation is related to pay out policy and its impact on conditional accounting conservatism. The findings also offer novel insights on the governing role and consequences of gender diversity of woman chairperson and/or woman CEO. Overall, contrary to notions of opportunistic behavior of executives, the results find that boards achieve more level of governance with more women representation.
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spelling doaj-art-5b6a144df6934e3f992445e032de5c452025-08-20T01:51:28ZengSpringerOpenFuture Business Journal2314-72022314-72102024-07-0110111710.1186/s43093-024-00377-7The governing role of board gender diversity on conditional accounting conservatism and executive remuneration: performance-based versus equity-based remunerationsReem Essam Bedeir0Accounting Department, Faculty of Commerce, Cairo UniversityAbstract This study examines the governing role of gender diversity on the board of directors on conditional accounting conservatism and executive remuneration. Using proprietary data about women representation on the board of directors to investigate the impact on the choice between accounting methods and the structure of executives remuneration. A sample of listed firms on the London Stock Exchange from 2019 to 2022 is used. The results first document that firms exhibit a higher level of conditional accounting conservatism when women represent a larger fraction of the board. The analyses further establish different relationships between performance-based versus equity-based remunerations and conditional accounting conservatism. Last, the results show that women representation is related to pay out policy and its impact on conditional accounting conservatism. The findings also offer novel insights on the governing role and consequences of gender diversity of woman chairperson and/or woman CEO. Overall, contrary to notions of opportunistic behavior of executives, the results find that boards achieve more level of governance with more women representation.https://doi.org/10.1186/s43093-024-00377-7Corporate governanceGender diversityBoards structureWomen directorsAccounting conservatismExecutives remuneration
spellingShingle Reem Essam Bedeir
The governing role of board gender diversity on conditional accounting conservatism and executive remuneration: performance-based versus equity-based remunerations
Future Business Journal
Corporate governance
Gender diversity
Boards structure
Women directors
Accounting conservatism
Executives remuneration
title The governing role of board gender diversity on conditional accounting conservatism and executive remuneration: performance-based versus equity-based remunerations
title_full The governing role of board gender diversity on conditional accounting conservatism and executive remuneration: performance-based versus equity-based remunerations
title_fullStr The governing role of board gender diversity on conditional accounting conservatism and executive remuneration: performance-based versus equity-based remunerations
title_full_unstemmed The governing role of board gender diversity on conditional accounting conservatism and executive remuneration: performance-based versus equity-based remunerations
title_short The governing role of board gender diversity on conditional accounting conservatism and executive remuneration: performance-based versus equity-based remunerations
title_sort governing role of board gender diversity on conditional accounting conservatism and executive remuneration performance based versus equity based remunerations
topic Corporate governance
Gender diversity
Boards structure
Women directors
Accounting conservatism
Executives remuneration
url https://doi.org/10.1186/s43093-024-00377-7
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