Corporate governance mechanisms and earnings management: The moderating role of female directors (Evidence From Saudi Arabia) | ||
| المجلة العربية للآداب والدراسات الإنسانية | ||
| Volume 9, Issue 37, October 2025, Pages 677-706 PDF (1.11 M) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/ajahs.2025.460256 | ||
| Authors | ||
| Dr.Bilal Najib Al-Jaraya1; Rawan Abdullah AlNuwaysir2 | ||
| 1Assistant Professor of Accounting and Finance –Qassim University | ||
| 2Master's student, Faculty of Business and Economics -Qassim University | ||
| Abstract | ||
| This study examines the moderating role of board gender diversity in the relationship between corporate governance (CG) mechanisms and earnings management (EM) practices among firms in Saudi Arabia. The analysis is based on a panel dataset comprising 150 firm-year observations drawn from the annual reports and financial statements of 50 Saudi-listed firms over the period 2021–2023. Panel data regression models are employed to assess the proposed relationships. The results indicate that board gender diversity plays a significant moderating role in the CG–EM relationship. Specifically, the presence of gender-diverse boards strengthens the effectiveness of corporate governance in constraining earnings management practices. These findings lend support to agency theory, suggesting that the influence of governance mechanisms on managerial behavior, such as EM, may be conditioned by board composition—particularly gender diversity. This study also contributes to the growing body of literature advocating for increased female representation on corporate boards. It highlights the unique competencies and monitoring capabilities that women bring to the boardroom, which can enhance oversight functions, including the mitigation of earnings manipulation. | ||
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