Our research examines whether CFO gender affects the likelihood of irregularities in a firm’s financial statements. In the current climate of increased focus on women leaders, especially in corporate positions, an intriguing question of academic and popular interest is whether male and female managers are associated with different firm decisions and behaviors. We examine this in the context of financial statements, which are an important part of the firm’s communications with its stakeholders. Because information presented in financial statements informs the investment decisions of capital market participants, the accuracy of said statements is critical to the effective functioning of the economy. Unfortunately, irregularities in financial statements are commonplace, with some estimates suggesting that at least 5% of the annual revenues of US-based firms are lost to fraud.
Posted by Vishal Gupta (University of Alabama) and Sandra Mortal (University of Alabama), on Tuesday, June 11, 2019
Editor's Note: Vishal Gupta is associate professor and Sandra Mortal is associate professor of Economics, Finance, & Legal Studies at the University of Alabama Culverhouse College of Commerce. This post is based on an article, forthcoming in Academy of Management Journal, by Professor Gupta; Professor Mortal; Bidisha Chakrabarty, Edward Jones Endowed Professor of Finance at St. Louis University; Xiaohu Guo, PhD Candidate in Finance at The University of Alabama; and Daniel B. Turban, Emma S. Hibbs/Harry Gunnison Brown Chair of Business and Economics at the University of Missouri.