Exploring and Explaining the Effects of Financial Literacy and the Complementary Relationship ‎of Female Board Members on Preventing Earning Management ‎(Evidence from companies listed on stock exchange)‎

Document Type : Original Article

Authors

1 Ph.D. candidate in Financial Engineering, Department of Accounting and Finance, Faculty of Management, Yazd University, Iran

2 Associate Professor of Finance and Accounting Department, Yazd University, Iran

Abstract

To achieve balance, equality, and elimination of prejudices, as well as the full development of organizations, ‎women need to be able to participate in the decision making process at various levels of the organization.‎‏ ‏In recent years, in the employment rate of women in society has increased significantly. The reason is the ‎remarkable competencies in women’s management style. Therefore, a new view to the management of ‎women is emerging in developing countries. The purpose of this study was to investigate the ‎complementary relationship between female board members and financial literacy with preventing earning ‎management in companies listed on stock exchange. 124 companies were selected as the research sample ‎using Systematic Sampling and after applying restrictions, from 2012 to 2018. Hypotheses have been tested ‎and analyzed using combined data regression techniques. The results of the study indicate that having ‎female members in board of directors has a significant effect on earning management. The presence of ‎educated women in the board will reduce profit management. Therefore, companies are encouraged to ‎have financially educated women on their board of directors.‎

Keywords

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Umer, R., Abbas, N., Hussain, S., & Naveed, N. (2020). The Gender Diversity and Earning Management Practices: Evidence from Pakistan. 

International Journal of Finance & Managerial Accounting
Volume 5, Issue 18
September 2020
Pages 91-102

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