Izvorni znanstveni članak
https://doi.org/10.18045/zbefri.2023.1.41
Gender diversity in the boardroom and earnings management during the period of the COVID-19 crisis
Toni Šušak
orcid.org/0000-0002-2878-4578
Tomislava Pavić Kramarić
Marijana Bartulović
Sažetak
This paper investigates the effect of the COVID-19 crisis on the relationship
between gender diversity in management and supervisory boards and the level of
earnings management. The research sample comprised companies listed on the
Croatian national stock exchange, and the panel data was obtained for the 2015-
2020 period to estimate regression models. Findings indicated that the presence
and higher share of female directors on management boards were beneficial for
curtailing earnings management but only for the financial statements disclosed
during the first year of the COVID-19 pandemic. At that time, such effort was vital
due to the escalation of earnings management caused by extremely pessimistic
economic expectations. In the financial statements disclosed during the second
year of the pandemic, the level of earnings management considerably declined,
and female directors were not as effective in restraining these activities as in the
first year. It could imply greater prudence of female directors when anticipating
the intensity of public scrutiny regarding financial statements in a period of crisis.
Gender diversity in supervisory boards proved to be an insignificant determinant
of earnings management during the COVID-19 crisis.
Ključne riječi
COVID-19 crisis; boardroom; earnings management; gender; diversity
Hrčak ID:
305131
URI
Datum izdavanja:
30.6.2023.
Posjeta: 1.103 *