The University of Southampton
University of Southampton Institutional Repository
Warning ePrints Soton is experiencing an issue with some file downloads not being available. We are working hard to fix this. Please bear with us.

Audit committee financial expertise, gender, and earnings management: Does gender of the financial expert matter?

Audit committee financial expertise, gender, and earnings management: Does gender of the financial expert matter?
Audit committee financial expertise, gender, and earnings management: Does gender of the financial expert matter?
The effectiveness of the presence of financial expertise on the audit committee (AC) in reducing earnings management has been the subject of many previous studies with mixed findings. This paper suggests that the mixed findings may be due to prior studies not distinguishing between the genders of the financial experts on the AC. We investigate how financial expertise affects earnings management taking into account the gender of the financial expert. We use the data of a sample of 5,660 US firm-year observations from 2007 to 2013 which was analysed using least squares regressions clustering by firm. The results indicate that proportion of financial expertise on the AC and gender reduce earnings management. We then group the AC financial experts by gender, and examine whether the gender of the financial expert matters. The results show that the proportion of female financial experts on the AC is significantly associated with less earnings management while the proportion of male financial experts does not significantly affect earnings management; this suggests that previous studies indicating that the presence of a financial expert on the AC may have been influenced by gender of the female financial experts. Further, our findings may also partly explain why studies on the effect that financial expertise has on the AC are conflicting.
Audit committee, Gender, Financial expertise, Earnings management
1057-5219
170-183
Zalata, Alaa Mansour
0fc2c56d-97ad-44ce-ab31-63ca335dcef6
Tauringana, Venancio
27634458-b041-4bc1-94da-3e031d777e4f
Tingbani, Ishmael
e6b2741a-d792-4adf-84cc-a2f64d5545ca
Zalata, Alaa Mansour
0fc2c56d-97ad-44ce-ab31-63ca335dcef6
Tauringana, Venancio
27634458-b041-4bc1-94da-3e031d777e4f
Tingbani, Ishmael
e6b2741a-d792-4adf-84cc-a2f64d5545ca

Zalata, Alaa Mansour, Tauringana, Venancio and Tingbani, Ishmael (2018) Audit committee financial expertise, gender, and earnings management: Does gender of the financial expert matter? International Review of Financial Analysis, 55, 170-183. (doi:10.1016/j.irfa.2017.11.002).

Record type: Article

Abstract

The effectiveness of the presence of financial expertise on the audit committee (AC) in reducing earnings management has been the subject of many previous studies with mixed findings. This paper suggests that the mixed findings may be due to prior studies not distinguishing between the genders of the financial experts on the AC. We investigate how financial expertise affects earnings management taking into account the gender of the financial expert. We use the data of a sample of 5,660 US firm-year observations from 2007 to 2013 which was analysed using least squares regressions clustering by firm. The results indicate that proportion of financial expertise on the AC and gender reduce earnings management. We then group the AC financial experts by gender, and examine whether the gender of the financial expert matters. The results show that the proportion of female financial experts on the AC is significantly associated with less earnings management while the proportion of male financial experts does not significantly affect earnings management; this suggests that previous studies indicating that the presence of a financial expert on the AC may have been influenced by gender of the female financial experts. Further, our findings may also partly explain why studies on the effect that financial expertise has on the AC are conflicting.

Text
Audit committee financial expertise - Accepted Manuscript
Download (434kB)
Text
Audit committee financial expertise, gender, and earnings management: Does gender of the financial expert matter? - Accepted Manuscript
Download (432kB)

More information

Accepted/In Press date: 28 November 2017
e-pub ahead of print date: 29 November 2017
Published date: January 2018
Keywords: Audit committee, Gender, Financial expertise, Earnings management

Identifiers

Local EPrints ID: 416029
URI: http://eprints.soton.ac.uk/id/eprint/416029
ISSN: 1057-5219
PURE UUID: f16361dd-69d8-435c-95d1-5be19cc0b586
ORCID for Alaa Mansour Zalata: ORCID iD orcid.org/0000-0003-2018-4313
ORCID for Venancio Tauringana: ORCID iD orcid.org/0000-0002-1433-324X
ORCID for Ishmael Tingbani: ORCID iD orcid.org/0000-0002-4012-1224

Catalogue record

Date deposited: 30 Nov 2017 17:30
Last modified: 26 Nov 2021 05:46

Export record

Altmetrics

Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Atom RSS 1.0 RSS 2.0

Contact ePrints Soton: eprints@soton.ac.uk

ePrints Soton supports OAI 2.0 with a base URL of http://eprints.soton.ac.uk/cgi/oai2

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×