Virtus InterPress

ACCRUAL QUALITY: THE PRESENCE OF WOMEN DIRECTORS ON AUDIT COMMITTEE BOARDS

Zalailah Salleh, Hafiza Aishah Hashim, Nor Raihan Mohamad

DOI: 10.22495/cocv10i1c7art3

Abstract

This article examines whether the participation of women on audit committee boards enhances audit committee effectiveness to control earnings management practices. While numerous studies have investigated the effects of women audit committee on earnings management, empirical evidence is rather inconsistent. Therefore, it is imperative to investigate the impact of female representation on audit committee effectiveness. In order to address the objective of the study, we use cross-sectional version of the performance-adjusted current discretionary accruals model to detect earnings management (Kothari, Leone and Wasley, 2005). Using a sample of 356 companies for the year ended 2007; we found a significant negative relationship between the presence of women directors on audit committee boards and earning managements. The results suggest that the presence of women directors on audit committee boards reduces earning management practices.

Keywords: Audit Committee, Accrual Quality, Gender Diversity, Earnings Management, Malaysia

How to cite this paper: Salleh, Z., Hashim, H. A., & Mohamad, N. R. (2012). Accrual quality: The presence of women directors on audit committee boards. Corporate Ownership & Control, 10(1-7), 675-680. http://doi.org/10.22495/cocv10i1c7art3

Download This Article
Corporate Governance Experts Global Repository
Merio Honor Честь
Ryoushin Conscience Совесть
Kouki Nobility Доброе имя