DOES THE PRESENCE OF WOMEN ON THE BOARD OF DIRECTORS MITIGATE INCOME SMOOTHING?
AN ANALYSIS OF BRAZILIAN COMPANIES
DOI:
https://doi.org/10.51320/rmc.v24i1.1417Keywords:
Gender, Intentional smoothing of results, Intentional use of equalization reservesAbstract
We analyzed the influence of the presence of women on the board of directors in the intentional smoothing of results. Our sample consisted of 126 companies that totaled 737 observations, when considering annual information from 2013 to 2018, which were analyzed using panel data regression. We used two income smoothing metrics that were improved by Lang, Lins and Maffett (2012). We found that a third of the analyzed companies do not have any women as a board member in any of the analyzed periods. Furthermore, the average proportion of female members is 9.52%. We also found that the increase in the proportion of female members on the board of directors is not related to intentional income smoothing, but reduces the intentional use of compensation reserves. That is, only when managers carry out the compensation of actions related to management practiced in past periods to reduce the fluctuation in the result of the current period. Our findings contribute to the accounting practice that gender diversity can be a factor that increases the efficiency of the board of directors in monitoring managers for opportunistic practices.
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Copyright (c) 2023 Taise Feltes, Allison Manoel de Sousa, Suliani Rover, Alex Mussoi Ribeiro
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