The literature of earnings management is intensively studied but limited focus is present in relation to the association between women on boards of directors and in top management and earnings management. The purpose of this thesis is to examine how accrual and real earnings management is associated with women on boards of directors and women in top management. Data is based on Nordic listed firms in the time period between 2011 to 2018. Thus, this thesis seeks to contribute to the literature of earnings management by investigating the topic with a relevant societal scope. The research is based on a quantitative approach where econometric modelling isused. An extension of the modified Jones (1991) model is used for the accrual estimations, and real earnings management estimations are based on Roychowdhury’s model (McNicholes, 2002; Roychowdhury, 2006). The findings provide empirical evidence that there is a negative association between the share of women on boards of directors, when the board is represented by at least 40% of women, and accrual and real earnings management. Furthermore, the results show that firms with a female CEO are negatively associated with accrual and real earnings management when new finance is issued. Contrarily, a female CFO is positively associated with accrual and real earnings management when compensation is distributed. There are no significant results provided in relation to firms with a female Chairman. Additionally, when focusing on each Nordic country, there is a clear tendency that women are negatively associated with accrual and real earnings management. However, with the exception of female CFOs in Norwegian and Swedish firms.
|Educations||MSc in Applied Economics and Finance, (Graduate Programme) Final ThesisMSc in Auditing, (Graduate Programme) Final Thesis|
|Number of pages||155|