Women director characteristics and earnings quality: evidence from banking industry in Indonesia

Abstract

AbstractRecognizing the growing importance of gender diversity in corporate governance, this study delves into the impact of women directors’ attributes on earnings management. Focusing on listed banks in the Indonesia Stock Exchange, we hand-collect women directors’ profiles from 2017 to 2021. Notably, our findings reveal that having women on the board correlates with reduced earnings management. Specifically, while higher educational attainment among women directors positively affects earnings management, this effect turns negative when considered in conjunction with their educational backgrounds. Additionally, the tenure of women directors appears to inversely impact earnings management. Crucially, our study breaks new ground by exploring the moderating roles of educational levels and backgrounds, thereby enriching existing literature and shedding light on nuanced effects across different levels of earnings management.

Keywords

• Banking
• characteristics of women directors
• earnings quality
• education levels and backgrounds
• Collins Ntim, University of Southampton, United Kingdom of Great Britain and Northern Ireland
• M4