Earnings Quality and Price Informativeness: The Moderator Role of Gender Diversity

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Ebrahim Mansoori


Women’s representation on corporate boards has recently drawn increasing attention. This study aims to investigate the moderator role of females on board of directors on the relationship between earnings quality (EQ) and stock price informativeness. This research uses secondary data obtained from the Sahra database that span 158 active firms on the Tehran Stock Exchange from 2017 to 2021. Findings indicated that the presence of female directors on the board had a favorable impact on the correlation between EQ and pricing informativeness. That is, firms with more female board members have a greater association between EQ and pricing informativeness. The practical application of this research relates to female CEOs’ monitoring roles, thereby enhancing the quality of financial reporting.

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