Gender diversity in corporate boards on earnings management evidence for vietnamese listed firms

Abstract

The objective of this study is to examine how gender diversity in corporate boards on earnings management of Vietnamese listed firms. Earnings management is measured by discretionary accruals. Using a data sample of 264 companies listed on the Ho Chi Minh City Stock Exchange (HOSE) during the period from 2015 to 2023. The analysis employs balanced panel data with the generalized method of measurement (GMM) regression method. The results showed that there is relationship between female direc and earnings managem female directors and earnings management. Gender diversity increases earnings management behavior. We also find that the presence of one or two female directors has a statistically significant and positive impact on earnings management at the 1% level, while the presence of three or more female directors has a mitigating effect. Other factors, such as board size, financial leverage, and firm size, also show significant associations with earnings management behavior. The results also provide useful information to investors in evaluating the impact of board gender diversity on earnings quality. The results suggest that while female board members may positively influence board dynamics, a minimum number is required to effectively reduce earnings management. This study provides the necessary information for policymakers to plan board structures with adequate female representation and to establish more appropriate regulations to improve financial transparency and corporate governance.