The Gender Diversity and Earning Management Practices: Evidence from Pakistan

Ramsha Umer, Nasir Abbas, Shahzad Hussain, Naveed Naveed

Abstract


The study examines the relationship of gender diversity and earning management practices through dynamic penal estimation. We estimate discretionary accruals using well-known model of Kothari, Leone, and Wasley (2005). Whereas, this study consider three different aspects such as women in the board, women in the audit committee and women CEO for estimation of gender diversity. This findings of this study is based on a sample of 100 listed non-financial companies over the period of 2010-2015. Consistent with previous findings, we document that negative impact of gender diversity in the corporate board and audit committee with earning management practices. Furthermore, our results reveal that the presence of female as a CEO plays a pivotal role in constraining earnings management practices.

Keywords: Gender Diversity, Earning Management Practices, Women Empowerment

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