Ach Maulidi, Nanang Shonhadji, Fachruzzaman, Rida Perwita Sari, Dian Anita Nuswantara and Rindang Widuri
The purpose of this study is to examine whether female chief financial officers (CFOs) are associated with the occurrences of financial reporting fraud. This study offers new…
Abstract
Purpose
The purpose of this study is to examine whether female chief financial officers (CFOs) are associated with the occurrences of financial reporting fraud. This study offers new theoretical and empirical evidence on whether firms with more female CFOs are more (less) likely to engage in financial reporting fraud.
Design/methodology/approach
This study is based on a sample of US-listed firms from 2011 to 2021. The authors speculate that female CFOs play a weaker role in the occurrences of financial reporting fraud. So, firms with a proportional number of female CFOs should be less likely to commit financial reporting fraud.
Findings
The data provide support for the predictions of this study. This study suggests a negative and significant association between the dummy variables for female CFOs and the occurrences of financial reporting fraud. The authors find that this association is contingent on governance mechanisms [e.g. ownership structure, politically connected CEOs and firms' conditions that do (or do not) invest in a gender-diverse board].
Originality/value
This study offers different perspectives on the impact of female CFOs on the occurrences of financial reporting fraud. The results of this study are distinguishable from prior studies. This study moves the analytical focus from the macro level (gender diversity or female corporate leaders) to the micro level (female CFOs) to understand firms' propensity to commit financial reporting fraud. Additionally, this study is based on factual financial reporting fraud cases, considering the US firms' fraud characteristics.
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Burair Sajwani, Mohammad Al-Shboul and Aktham Maghyereh
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…
Abstract
Purpose
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.
Design/methodology/approach
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.
Findings
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.
Practical implications
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.
Social implications
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.
Originality/value
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.