Corporate governance mechanisms and earnings management: The moderating role of female directors
The current study investigates how board gender diversity moderates the relationship between corporate governance mechanisms (CG) and earnings management (EM) practices of firms in sub-Saharan Africa. The study samples annual reports and financial statements of 52 firms from nine sub-Saharan African...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2023-12-01
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| Series: | Cogent Business & Management |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2023.2167290 |
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| author | Emmanuel Mensah Christopher Boachie |
| author_facet | Emmanuel Mensah Christopher Boachie |
| author_sort | Emmanuel Mensah |
| collection | DOAJ |
| description | The current study investigates how board gender diversity moderates the relationship between corporate governance mechanisms (CG) and earnings management (EM) practices of firms in sub-Saharan Africa. The study samples annual reports and financial statements of 52 firms from nine sub-Saharan African countries over a period of 2007 to 2019 giving a total of 676 observations. Panel data models are used in the analyses. The study finds that, board gender diversity matters and significantly moderates the relationship between CG and EM practices of firms in sub-Saharan Africa. The findings of the study support the agency theory proposition that the constraining effect of firms’ EM practices may be contingent on CG systems, particularly board gender diversity. The current study is the first African multi-cross-country study to introduce gender diversity as a moderating variable in the CG—EM nexus, thus extending the agency theory. It further contributes to the emergent advocacy for competent female representation on corporate boards so as to benefit from their essential characteristics and skills that drive their superior monitoring abilities, including EM monitoring. |
| format | Article |
| id | doaj-art-d6ea251a8ae247f5ab7303fa7b988fa8 |
| institution | OA Journals |
| issn | 2331-1975 |
| language | English |
| publishDate | 2023-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj-art-d6ea251a8ae247f5ab7303fa7b988fa82025-08-20T02:09:40ZengTaylor & Francis GroupCogent Business & Management2331-19752023-12-0110110.1080/23311975.2023.2167290Corporate governance mechanisms and earnings management: The moderating role of female directorsEmmanuel Mensah0Christopher Boachie1University of Professional Studies, Accra, P.O. Box LG149, AccraCentral University, Accra, GhanaThe current study investigates how board gender diversity moderates the relationship between corporate governance mechanisms (CG) and earnings management (EM) practices of firms in sub-Saharan Africa. The study samples annual reports and financial statements of 52 firms from nine sub-Saharan African countries over a period of 2007 to 2019 giving a total of 676 observations. Panel data models are used in the analyses. The study finds that, board gender diversity matters and significantly moderates the relationship between CG and EM practices of firms in sub-Saharan Africa. The findings of the study support the agency theory proposition that the constraining effect of firms’ EM practices may be contingent on CG systems, particularly board gender diversity. The current study is the first African multi-cross-country study to introduce gender diversity as a moderating variable in the CG—EM nexus, thus extending the agency theory. It further contributes to the emergent advocacy for competent female representation on corporate boards so as to benefit from their essential characteristics and skills that drive their superior monitoring abilities, including EM monitoring.https://www.tandfonline.com/doi/10.1080/23311975.2023.2167290earnings managementcorporate governance mechanismsboard gender diversityfirm-performancepanel data modelssub-Saharan Africa |
| spellingShingle | Emmanuel Mensah Christopher Boachie Corporate governance mechanisms and earnings management: The moderating role of female directors Cogent Business & Management earnings management corporate governance mechanisms board gender diversity firm-performance panel data models sub-Saharan Africa |
| title | Corporate governance mechanisms and earnings management: The moderating role of female directors |
| title_full | Corporate governance mechanisms and earnings management: The moderating role of female directors |
| title_fullStr | Corporate governance mechanisms and earnings management: The moderating role of female directors |
| title_full_unstemmed | Corporate governance mechanisms and earnings management: The moderating role of female directors |
| title_short | Corporate governance mechanisms and earnings management: The moderating role of female directors |
| title_sort | corporate governance mechanisms and earnings management the moderating role of female directors |
| topic | earnings management corporate governance mechanisms board gender diversity firm-performance panel data models sub-Saharan Africa |
| url | https://www.tandfonline.com/doi/10.1080/23311975.2023.2167290 |
| work_keys_str_mv | AT emmanuelmensah corporategovernancemechanismsandearningsmanagementthemoderatingroleoffemaledirectors AT christopherboachie corporategovernancemechanismsandearningsmanagementthemoderatingroleoffemaledirectors |