Female directors and accounting quality: a quasi-natural experiment research

This study capitalises on the unique setting created by the enactment of a board gender quota in Norway, which led to an unprecedented increase in the number of female directors within a short timeframe. To examine the impact of female board presence on accounting quality, the study employs a differ...

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Bibliographic Details
Published in:Revista española de financiación y contabilidad 2024-10, Vol.53 (4), p.427-450
Main Authors: Garcia-Blandon, Josep, Argilés-Bosch, Josep Maria, Ravenda, Diego
Format: Article
Language:English
Subjects:
abnormal accruals
accounting conservatism
difference-in-differences
earnings response coefficients
Female directors
Sustainable development
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Summary:This study capitalises on the unique setting created by the enactment of a board gender quota in Norway, which led to an unprecedented increase in the number of female directors within a short timeframe. To examine the impact of female board presence on accounting quality, the study employs a difference-in-differences methodology, taking advantage of this quasi-natural experiment context. Given the inherently endogenous nature of the research topic, the interpretation of the relationship between the number of female directors on the board and accounting quality reported in some prior studies as casual relationships poses challenges. In that regard, this study aims to shed light on an unresolved issue with the implementation of a research design that is particularly robust to endogeneity concerns. The empirical analysis produces compelling results, firmly rejecting any significant impact of female directors on accounting quality. The findings hold strong across various checks.
ISSN:0210-2412
2332-0753
DOI:10.1080/02102412.2023.2293375