Female directorship and real earnings management in Bangladesh: Towards an analytical assessment

Female directorship and real earnings management in Bangladesh: Towards an analytical assessment

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We analyze the association between female directorship on the board and real earnings management in context of an emerging economy, in Bangladesh.To accomplish the task, we utilize a sample of 2193 firm-year observations listed on the motovox scooter parts Dhaka Stock Exchange throughout the period 2000-2017.Our exploration indicates that the presence of female directors, the proportion of female directors on the board, as well as the presence of independent female director; all of these forms are positively associated with real earnings management.

Therefore firms, with female director(s), tend to be in-volved in higher levels of earnings management through lower price discount, unfavorable credit facility and lower scales of production.This study also underscores that firms with female direc-tor(s) are more likely to abide by defensive financial reporting policies and they lean diegojavierfares.com towards employing more income-decreasing earnings.On the other hand, their counterparts in firms with a less representation from female on the board are much less likely to engage in similar practices.

So, the persistence of female directors may resolve the problem of income-increasing real earnings man-agement in a significant manner.Additionally, we provide evidence that corporate governance plays a beneficial role in limiting real earnings management especially when the board appoints female director(s).