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Does Female Directorship on Independent Audit Committees Constrain Earnings Management?

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Abstract

This study examines whether the gender of the directors on fully independent audit committees affects the ability of the committees in constraining earnings management and thus their effectiveness in overseeing the financial reporting process. Using a sample of 525 firm-year observations over the period 2003 to 2005, we are unable to identify an association between the proportion of female directors on audit committees and the extent of earnings management.

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Authors and Affiliations

  1. Odette School of Business, University of Windsor, 401 Sunset Avenue, Windsor, ON, N9B 3P4, Canada

    Jerry Sun & George Lan

  2. Ted Rogers School of Management, Ryerson University, 350 Victoria Street, Toronto, ON, M5B 2K3, Canada

    Guoping Liu

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  1. Jerry Sun
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  2. Guoping Liu
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  3. George Lan
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Correspondence to Guoping Liu.

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Sun, J., Liu, G. & Lan, G. Does Female Directorship on Independent Audit Committees Constrain Earnings Management?. J Bus Ethics 99, 369–382 (2011). https://doi.org/10.1007/s10551-010-0657-0

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  • DOI: https://doi.org/10.1007/s10551-010-0657-0

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