The influence of gender diversity and earnings management on short- and long-term financial performance of European firms

Keywords

Loading...
Thumbnail Image

Issue Date

2019-07-03

Language

en

Document type

Journal Title

Journal ISSN

Volume Title

Publisher

Title

ISSN

Volume

Issue

Startpage

Endpage

DOI

Abstract

Gender diversity in boards of directors is an increasingly described topic in developed countries. This study contributes to this discussion by examining the effects of gender diversity and earnings management on financial firm performance in the short and long run. The data sample includes 951 listed companies in 2017. The companies are from 10 different countries of the European Economic Area without a gender quota. It is found that gender diversity has no influence on firm performance in the short run, and has a positive influence in the long run. In addition, has earnings management (ABEM) a positive influence on short-term firm performance, and no influence on long-term firm performance. Another part of earnings management, RAEM, has no influence in the short term, but it does have a negative influence on long-term firm performance. It further appears that earnings management mediates the relationship between gender diversity and firm performance. In addition, a moderation effect has also been found. Namely, that earnings management and gender diversity complement in explaining firm performance. Keywords: accrual-based earnings management; discretionary accruals; earnings management; financial performance; gender diversity; mediation effect; moderation effect; real activities earnings management; quota

Description

Citation

Faculty

Faculteit der Managementwetenschappen