Effect of Female Directors on Earnings Management in Family Firms in Non Financial Companies in Pakistan

Authors

  • Obaid Ullah Qurtaba University of Science and Technology Peshawar
  • Dr Naveed Associate Professor, Qurtuba University, Peshawar

Abstract

This research. This research was designed to unearth the growth or reduction in earnings management practices due to the role of female directors’ presence on the board. For analysing the abovementioned phenomena, a sample of 37 family firms for the period of 2010-17 was selected from the textile Industry. The data was collected from annual reports. The statistical tools of Correlation and Regression Analysis were used to combine the conclusions at a 5% level of significance. We found that family firms with a zero-percentage presence of female directors are controlled earnings management practices in Pakistan and gradually it increases but the results become good for 40 or more percentage female presence. The regression model with a p-value is 0.263 of female presence which is greater than the significance level value of 0.05, it means that the result is insignificant and we concluded that there is no significant effect of female presence on the board. The result for female CEO is significant with a pvalue of 0.031 which is less than 0.05, the significance level. It means that female CEO has a negative significant effect on earnings management as found. This paper adds extensive knowledge to the female role on board diversity and its effect on the manipulation of accounting disclosure.

Author Biography

Dr Naveed, Associate Professor, Qurtuba University, Peshawar

Associate Professor, Qurtuba University, Peshawar

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Published

2021-06-30

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Section

Articles