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The purpose of this study was to examine the moderating role of institutional ownership on the relationship between board gender diversity and earnings management (EM) among listed firms in East African Community (EAC) partner states.

The study used a sample of 71 firms listed in the EAC partner states over 2011–2020. Data were handpicked from the individual firm's audited annual financial reports. Based on the results of the Hausman test, the study used the results of the fixed-effect regression model to test the hypotheses. To test the robustness of the results, the study employed an alternative measure of EM and two additional econometric techniques, including the pooled ordinary least squares (OLS) and the system generalized method of moments (GMM).

The empirical findings revealed that female directors improve the board's effectiveness in monitoring managerial roles. Specifically, the results showed a significantly negative relationship between the proportion of women in the corporate board and EM (as measured by discretionary accruals (DAs)). The findings further revealed an inverse relationship between the proportion of institutional ownership and EM. Finally, the results further demonstrated that institutional ownership enhances the role of board gender diversity in mitigating EM among listed firms in the EAC.

The findings of this study may be useful to managers, investors and regulators in assessing the role of institutional ownership and women's participation on corporate boards as a strategy for alleviating unethical manipulation of earnings.

The findings of this study contribute to the growing concern on gender inequality, especially the marginalization of women from the paid labor force and decision-making. The findings highlight the importance of having more women in the corporate board since this may help in mitigating corporate fraud. Similarly, the findings highlight the importance of institutional ownership as a corporate governance (CG) tool.

Previous studies have reported mixed empirical results on whether board gender diversity mitigates EM. To the best of the author's knowledge, this is the first paper to fill the existing gap by exploring whether institutional ownership moderates the relationship between board gender diversity and EM among listed firms in the EAC.

The purpose of this study is to investigate the moderating effect of board gender diversity on the relationship between sustainability reporting (SR) and earnings management (EM) in the East Africa Community (EAC).

The study analyzed a sample of 71 publicly traded companies from 2011 to 2021.

The study finds that both SR and board gender diversity have a negative and significant effect on EM and that board gender diversity moderates the relationship between SR and EM.

The findings suggest that boards should support the adoption of SR and increase female representation as a practical way to reduce EM. Policymakers should also implement appropriate measures, such as imposing mandatory SR and gender quotas on corporate boards, to address EM.

This research adds to the limited knowledge of SR and EM in the EAC and also fills a gap in the existing literature by investigating the influence of board gender diversity on the link between SR and EM.

The aim of this paper is to determine whether the efficiency of banks’ human capital (HC) has moderating effects on the relationship between asset diversification and bank performance over the 2008–2020 period.

Our study considers generalized least squares estimation in fixed effects panel.

Results show that banks with higher levels of HC and higher degree of diversification reduce bank profitability and efficiency. The results also depict that the financial stability-reducing effects of Income diversification decrease as bank HC efficiency increases. At the same time, the effects of income and asset diversity on financial stability change depending on the performance aspect.

Previous research on banks’ performance is concentrated on asset diversification. This article broadens to the HC, Asset diversification and the moderating effects of the profitability, stability and efficiency of French Banks.

This paper aims to examine the consequences of board diversity (BD) in Kuwait. In particular, it examines the impact of BD (gender, age and nationality) on earnings management (EM).

The research uses data from 103 non-financial Kuwaiti-listed companies from 2010 to 2017. The data is collected from the companies’ data from secondary sources such as their annual reports. The data analysis methods are correlation, multi-regression and robust regression. EM is measured using the modified Jones model (1995) and Kothari et al. (2005).

The findings show a negative association between gender diversity (GD) and EM. It also found a positive relationship between age diversity (AD) and EM and no relationship between national diversity (ND) and EM.

This study’s results have significant implications for investors. The practical empirical findings indicate that GD on the board did not impact on EM. Also, it is more important to have senior directors on the board than AD to reduce EM. There is no need to employ any foreigners because they do not affect EM.

It contributes to the growing body of literature on BD by investigating its effect on EM. Furthermore, building on the broader literature on gender, age and ND by highlighting the critical role that women, young people and foreign directors play in improving boards' monitoring role on EM. More specifically, it contributes to existing knowledge, provides a theoretical contribution and makes a methodological contribution.

This study aims to analyze the board characteristics–financial sustainability relationship in the largest US nonfinancial listed firms and the impact of the COVID-19 pandemic on this relationship.

Board characteristics such as attendance, cultural diversity, size, experience and gender diversity were assessed in relation to financial sustainability through various regression models, using 2007–2023 panel data of nonfinancial S&P 500 firms.

The examined board characteristics are positively associated with financial sustainability. The COVID-19 pandemic accentuated this association, which emphasizes the importance of effective board oversight during crises.

The findings provide guidance to shareholders, managers and regulators seeking to enhance corporate governance and financial sustainability. The adoption of effective supervisory and monitoring mechanisms can improve financial sustainability and reporting practices.

Enhanced financial sustainability practices can lead to a more stable and secure financial future for companies, thus benefiting employees, shareholders and communities. This study offers insights for promoting the overall social and economic well-being of the US market.

This study enhances knowledge on how board characteristics influence financial sustainability, particularly during crises such as the COVID-19 pandemic. It provides insights into safeguarding stakeholder interests and improving financial sustainability in the US market.

This study examines whether the risk management committee (RMC) mitigates earnings management (EM) in Nigeria.

The study used a sample of 365 firm-year observations of Nigerian-listed nonfinancial companies from 2018 to 2022. Driscoll and Kraay’s fixed-effect standard error regression model is used to test the hypotheses.

The study finds that RMC size, expertise, meeting frequency and membership overlapping with the audit committee have a negative effect on both accrual earnings management (AEM) and real earnings management (REM). While RMC independence is found to have a negative effect on REM. Moreover, additional tests reveal that RMC effectiveness is significantly associated with lower EM practices. Further analysis using the industry level finds that RMC attributes mitigate EM practices in some industries. The results remain after rigorous, robust analysis for endogeneity and alternative regressions.

This study is limited to a sample of Nigerian-listed nonfinancial service companies for a period of five years, resulting in the non-generalizability of the findings to different contexts as the countries’ internal policies and regulations varied.

The findings have important implications for regulators, policymakers and investors that a stand-alone RMC can effectively help to evaluate potential risk activities and implement a proper risk management system, thereby mitigating EM practices. The result can help investors, analysts and other stakeholders across the international community in considering RMC information to evaluate potential risk and earnings management practices.

Following the NCCG 2018 reform in Nigeria that requires listed firms to create a standalone RMC, this study is among the earliest that examines the effect of RMC attributes on EM practices and emerging markets. As such, the findings may draw the attention of regulators and policymakers across the African market and the international community to the monitoring role of RMC attributes in mitigating EM practices.

This paper aims to investigate the direct and indirect relationship between CEO compensation and earnings management using corporate social responsibility (CSR) as a mediating variable.

This study examines 159 French firms listed on the SBF 250 index, encompassing 1,908 firm-year observations from 2011 to 2022, to investigate the relationship between CEO compensation, CSR and earnings management. We used discretionary accruals as the earnings management measure, under the Kothariet al. model (2005). The direct and indirect effects between CEO compensation and earnings management were tested using structural equation model analysis.

The results reveal that CEO compensation positively influences earnings management. Higher CEO compensation is associated with a greater likelihood of engaging in earnings management practices. CSR was found to partially mediate the relationship between CEO compensation and corporate earnings management. Further analysis indicates that the social and environmental dimensions of CSR contribute significantly to this mediating effect.

The study’s focus on the French institutional context may limit the generalizability of the findings to other regions. In addition, the relatively small sample size, given the limited number of publicly listed firms in France, suggests that extending the study to include other European countries could enhance the robustness of the results.

The findings have practical implications for companies, policymakers and regulators seeking to curb opportunistic managerial behavior. Regulators can develop policies that promote transparency and ethical financial reporting, leveraging CSR as a governance tool to curb earnings manipulation.

This study highlights the ethical concerns of excessive CEO compensation, which may incentivize earnings management and undermine financial transparency. It emphasizes the need for strong CSR practices, particularly in the social and environmental dimensions, to mitigate these issues and align corporate behavior with societal and sustainability goals.

The originality of this paper lies in its exploration of both direct and indirect relationships between CEO compensation and earnings management, with CSR acting as a mediating variable. Unlike previous studies that have primarily focused on the direct link between CEO compensation and earnings management, this research investigates the potential mediating role of CSR in this relationship. In addition, this study distinguishes itself by examining the impact of the structure of CEO compensation on earnings management. While the existing literature has concentrated on total CEO compensation, the effects of its individual components such as fixed and variable compensation remain underexplored.

This study aims to address a research gap by examining the relationship between CEO power, board strength and earnings quality in Gulf Cooperation Council (GCC) countries, a region with distinctive economic and governance characteristics. It explores how governance mechanisms impact financial reporting in a context marked by significant corruption challenges and regulatory dynamics. The paper underscores the relevance of the GCC setting because of its unique blend of rapid economic reform, policy shifts toward diversification and evolving governance frameworks influenced by Islamic principles.

This study uses 5,030 firm-year observations from GCC countries over the period 2003–2022. To test the study’s hypotheses, the authors apply the System Generalized Method of Moments.

The study reveals a significant negative correlation between perceived corruption and earnings quality, with higher corruption leading to lower earnings quality. It finds that CEO power further diminishes earnings quality and intensifies corruption’s negative effects on financial reporting while strong board governance positively affects earnings quality and reduces the adverse impact of corruption.

By focusing on the GCC – a region undergoing significant regulatory reforms and policy changes – this study enriches the discourse on earnings quality within emerging markets. It provides novel insights into how corruption, CEO power and board strength interact to influence financial reporting quality, offering actionable implications for policymakers and stakeholders navigating these unique economic and governance landscapes.

This study aims to analyze the impact of board gender diversity (BGD) on a bank’s financial stability. Moreover, it also examines whether digitalization and income diversification act as mediators (individual and serial) in this relationship.

Hypotheses were tested using data from Pakistan’s banking sector financial statements from 2017 to 2021. A two-step analytical approach was used: panel regression in STATA for initial hypothesis examination, followed by mediation analyses using bootstrapping in SPSS. In addition, mixed-effect ML regression was conducted to verify causation and ensure robust findings.

Results demonstrate that BGD, digitalization and income diversification are positively associated with higher financial stability. Moreover, as hypothesized, both digitalization and income diversification individually and sequentially mediate the relationship between BGD and banks’ financial stability.

It is important to acknowledge the study’s limited five-year timeframe. Further investigation is needed to determine the optimal board compositions, especially considering the study’s inclusion of up to 25% female directors on boards.

Policymakers and top management should prioritize increasing the number of female directors on boards for diversity. Banks that involve female directors can benefit from the synergies between gender diversity and digitization, along with the unique perspectives these women offer. This cooperative dynamic enables banks to explore and capitalize on innovative income diversification opportunities, enter new markets and ensure financial stability.

Research findings emphasize promotion of gender equality and meritocracy through increased female director representation. This fosters a more inclusive and cooperative decision-making culture, benefiting individual banks and setting a model for other sectors. Ultimately, it contributes to greater social acceptance of women executives.

The study reveals a novel mechanism, emphasizing the revolutionary impact of active female directors in tandem with digitalization, amplifying chances for income diversification and accelerating increased bank viability.