Board Gender Diversity and Accounting Conservatism
Posted: 1 Jun 2017
Date Written: May 31, 2017
We examine the effect of board gender diversity on accounting conservatism. Particularly, we investigate changes in the degree of conservatism for firms that transit from an all-male board (audit committee) to a gender diverse board (audit committee).
Using a sample of U.S. firms from 1998 to 2014, we show that the degree of conservatism in accounting increases in firms after the transitions, compared to:
(i) firms without transitions and,
(ii) firms with transitions that do not involve the induction of a female director (audit committee member).
Furthermore, the results show that the increased conservatism is “sticky”, i.e. it does not reverse after departure of female directors.
Keywords: Accounting Conservatism; Corporate Governance; Female Director
JEL Classification: G34, M41, M48
Suggested Citation: Suggested Citation