Female Leaders and Earnings Management: An Exploration of Chief Positions

Septian Bayu Kristanto, Sidharta Utama, Sylvia Veronica N.P. Siregar


Female leader affects earnings management and the quality of the financial report. This study wants to investigate the effect of female leaders on real earnings management. We use the nine chief positions with a female presence as a leader. The data were obtained from Indonesia's public listed company on the S&P Global Market Intelligence database from 2012-2020. For real earnings management measures, we used data two years earlier. The data sample selected was 3.420 firm-year observations. The sample was separated into 12 classifications, according to IDX Industrial Classifications. Female leader positions as chief executive, chief accounting, and chief administration negatively affect real earnings management. While female leader positions as chief technology and chief marketing have a positive effect on real earnings management. We find that industrial has a different effect on real earnings management. Many studies are predicting female chief leaders and real earnings management. The most significant finding is female roles as finance managers. However, no research predicts real earning management using female leaders in various chief positions.

Full Text:



Adams, R. B., & Ferreira, D. (2007). A theory of friendly boards. Journal of Finance. https://doi.org/10.1111/j.1540-6261.2007.01206.x

Albaum, G., & Peterson, R. A. (2006). Ethical attitudes of future business leaders: Do they vary by gender and religiosity? Business & society, 45(3), 300–321.

Arieftiara, D., & Utama, S. (2018). Do Financial Reporting Quality and Corporate Governance Have Simultaneous Effect? Evidence from Indonesian Manufacturing Companies. AKRUAL: Jurnal Akuntansi, 9(2), 168–185.

Arioglu, E. (2020). The affiliations and characteristics of female directors and earnings management: evidence from Turkey. Managerial Auditing Journal. https://doi.org/10.1108/MAJ-07-2019-2364

Arun, T. G., Almahrog, Y. E., & Ali Aribi, Z. (2015). Female directors and earnings management: Evidence from UK companies. International Review of Financial Analysis. https://doi.org/10.1016/j.irfa.2015.03.002

Barney, J. B. (1996). The resource-based theory of the firm. Organization Science, 7(5), 469.

Cohen, D. A., Dey, A., & Lys, T. Z. (2008). Real and accrual-based earnings management in the pre-and post-Sarbanes-Oxley periods. Accounting Review. https://doi.org/10.2308/accr.2008.83.3.757

Dechow, P. M., & Skinner, D. J. (2000). Earnings management: Reconciling the views of accounting academics, practitioners, and regulators. Accounting Horizons. https://doi.org/10.2308/acch.2000.14.2.235

Dwivedi, P., Misangyi, V. F., & Joshi, A. (2021). “Burnt by the spotlight”: How leadership endorsements impact the longevity of female leaders. Journal of Applied Psychology.

Francis, B., Hasan, I., Park, J. C., & Wu, Q. (2015). Gender Differences in Financial Reporting Decision Making: Evidence from Accounting Conservatism. Contemporary Accounting Research. https://doi.org/10.1111/1911-3846.12098

Francis, J. R., & Wang, D. (2008). The joint effect of investor protection and big 4 audits on earnings quality around the world. Contemporary Accounting Research. https://doi.org/10.1506/car.25.1.6

Gavious, I., Segev, E., & Yosef, R. (2012). Female directors and earnings management in high-technology firms. Pacific Accounting Review. https://doi.org/10.1108/01140581211221533

Ge, W., & Kim, J. B. (2014). Real earnings management and the cost of new corporate bonds. Journal of Business Research. https://doi.org/10.1016/j.jbusres.2013.01.021

Ghazali, A. W., Shafie, N. A., & Sanusi, Z. M. (2015). Earnings Management: An Analysis of Opportunistic Behaviour, Monitoring Mechanism, and Financial Distress. Procedia Economics and Finance. https://doi.org/10.1016/s2212-5671(15)01100-4

Gujarati, D. N., & Porter, D. C. (2009). Basic Econometrics (5th ed.). In Basic Econometrics.

Gul, F. A., Fung, S. Y. K., & Jaggi, B. (2009). Earnings quality: Some evidence on the role of auditor tenure and auditors’ industry expertise. Journal of Accounting and Economics. https://doi.org/10.1016/j.jacceco.2009.03.001

Hili, W., & Affes, H. (2012). Corporate boards gender diversity and earnings Persistence: The case of French listed firms. Global Journal of Management and Business Research.

Hillman, A. J., Shropshire, C., & Cannella, A. A. (2007). Organizational predictors of women on corporate boards. Academy of Management Journal. https://doi.org/10.5465/AMJ.2007.26279222

Jaggi, B., & Lee, P. (2002). Earnings Management Response to Debt Covenant Violations and Debt Restructuring. Journal of Accounting, Auditing & Finance. https://doi.org/10.1177/0148558X0201700402

Joecks, J., Pull, K., & Vetter, K. (2013). Gender Diversity in the Boardroom and Firm Performance: What Exactly Constitutes a “Critical Mass?” Journal of Business Ethics. https://doi.org/10.1007/s10551-012-1553-6

Kothari, S. P., Leone, A. J., & Wasley, C. E. (2005). Performance matched discretionary accrual measures. Journal of Accounting and Economics. https://doi.org/10.1016/j.jacceco.2004.11.002

Kuo, J. M., Ning, L., & Song, X. (2014). The Real and Accrual-based Earnings Management Behaviors: Evidence from the Split Share Structure Reform in China. International Journal of Accounting. https://doi.org/10.1016/j.intacc.2014.01.001

Li, X., Than, E. T., Ahmed, R., Ishaque, M., & Huynh, T. L. D. (2021). Gender diversity of boards and executives on real earnings management in the bull or bear period: Empirical evidence from China. International Journal of Finance & Economics, 1–19. https://doi.org/https://doi.org/10.1002/ijfe.2562

Liu, Y., Wei, Z., & Xie, F. (2016). CFO gender and earnings management: Evidence from China. Review of Quantitative Finance and Accounting. https://doi.org/10.1007/s11156-014-0490-0

Luo, J. hui, Xiang, Y., & Huang, Z. (2017). Female directors and real activities manipulation: Evidence from China. China Journal of Accounting Research. https://doi.org/10.1016/j.cjar.2016.12.004

Mohanram, P. S. (2003). How to Manage Earnings Management? Accounting World.

Peni, E., & Vähämaa, S. (2010). Female executives and earnings management. Managerial Finance. https://doi.org/10.1108/03074351011050343

Roychowdhury, S. (2006). Earnings management through real activities manipulation. Journal of Accounting and Economics. https://doi.org/10.1016/j.jacceco.2006.01.002

Setiawan, F. A., Kurniawati, H., & Kristanto, S. B. (2020). The Influence of Women in the Board of Commissioners, CFO, and the Audit Committee on Earnings Quality. Jurnal Akuntansi. https://doi.org/10.24912/ja.v24i2.691

Srinidhi, B., Gul, F. A., & Tsui, J. (2011). Female directors and earnings quality. Contemporary Accounting Research. https://doi.org/10.1111/j.1911-3846.2011.01071.x

Sun, J., Lan, G., & Liu, G. (2014). Independent audit committee characteristics and real earnings management. Managerial Auditing Journal. https://doi.org/10.1108/MAJ-05-2013-0865

Talbi, D., Ali Omri, M., Guesmi, K., & Ftiti, Z. (2015). The role of board characteristics in mitigating management opportunism: The case of real earnings management. Journal of Applied Business Research. https://doi.org/10.19030/jabr.v31i2.9147

Temile, S. O., Jatmiko, D. P., & Hidayat, S. (2018). Gender Diversity, Earnings Management Practices And Corporate Performance In Nigerian Quoted Firms. International Journal of Economics, Commerce, and Management.

Visvanathan, G. (2008). Corporate governance and real earnings management. Academy of Accounting and Financial Studies Journal, 12(1), 9.

Watts, R. L., & Zimmerman, J. L. (1990). Positive Accounting Theory: A Ten Year Perspective. The Accounting Review.

DOI: http://doi.org/10.33312/ijar.578


  • There are currently no refbacks.


The Indonesian Journal of Accounting Research (IJAR)

Editorial Secretariat

Master of Science and Doctoral Programs
Faculty of Economics and Business, Gadjah Mada University

Jl. Nusantara, Bulaksumur Yogyakarta 55281
CP : Novita
Phone  : +62 812-2848-2829
Fax    : +62 274 524606
Website: http://ijar-iaikapd.or.id/
Email  : sekretariat@ijar-iaikapd.or.id

Marketing and Sales Office

Ikatan Akuntan Indonesia
Graha Akuntan, Jl. Sindanglaya No.1 Menteng, Jakarta Pusat 10310
CP : Reza Fauzi
Divisi Pelayanan, Keanggotaan dan Mitra IAI.
Grha Akuntan, Jl. Sindanglaya No.1, Menteng.
Telp.021-31904232 Ext.324/321



ISSN 2086-6887 (Print)
ISSN 2655 - 1748 (online)


Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.