THE RELATIONSHIP BETWEEN GENDER DIVERSITY AND EARNINGS QUALITY GIVEN DIFFERENCES IN CULTURAL DIMENSIONS AND ACCOUNTING VALUES
AuthorYOUSUF, ASMA EBRAHIM
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Given their risk-averse and conservative nature, female directors are expected to influence board effectiveness. However, despite the hefty literature on gender diversity, few studies (with inconclusive results) focused on the effect of female directors on accrual quality. From an institutional perspective, the interactions and decision making of the board are expected to be influenced by the mindset of its members. To that effect, this thesis examines the relationship between board gender diversity and earnings quality whilst considering the moderating effect of different cultural dimensions and accounting values. Hierarchical linear regression analysis is conducted using a sample of 3,092 public firms from 46 different countries for the year 2017. The results show that the effect of female directors on accrual quality is enhanced in small power distance, individualist, and feminine societies. The results also indicate that professionalism, uniformity, secrecy, and conservatism moderate the relationship between gender diversity and accrual quality. The study contributes to the body of accounting knowledge by examining important mitigating factors, which were not previously used in earnings quality literature.
- Accounting [13 items ]