Do Female Executives Manage Earnings Differently? A Gendered Analysis of Decision-Making
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Abstract
Given the fact that involvement of women in boardrooms and earnings reporting quality remain highly debated topics in the corporate environment — often offering mixed empirical evidence — this study reevaluates the gender–earnings management nexus from a regional perspective. Specifically, it investigates whether female presence on company boards and in CEO positions influences the extent of accrual-based earnings management. Applying panel data regression on a sample of 9,984 observations operating across Balkan economies between 2020 and 2022, the results reveal that a higher proportion of gender diversity within the board demonstrates a statistically significant effect on the extent of earnings management practices. However, a woman holding the CEO position does not seem to significantly constrain conservative earnings management behavior. These findings provide insights into how gender composition affects managerial decision-making and professional judgment in financial disclosure. By focusing on a transitional and institutionally evolving region, this research adds to the broader debate on whether gender diversity enhances ethical sensitivity and transparency in corporate governance. The results emphasize that while gender-balanced boards may foster more prudent reporting environments, leadership positions alone are insufficient to mitigate opportunistic financial behavior. The paper thus underscores the relevance of examining both structural and behavioral dimensions of gender balance when assessing the quality of earnings and corporate accountability.
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