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Past evidence generally suggests that the presence of female directors on corporate boards tends to improve earnings quality due to these directors’ superior monitoring abilities. However, it is not clear which characteristics and skills of female directors drive such abilities. In this paper, we focus on the financial background of female directors, an area which remains largely unexplored in existing literature. The results show that the participation of female directors with relevant financial background improves earnings quality more than the participation of female directors without such background. In addition, our findings suggest that only female directors possessing relevant financial background and having fewer outside directorships are able to mitigate earnings management and therefore overcommitting expert female directors with more outside directorships would diminish their monitoring ability. We did not find any evidence suggesting that female directors without relevant financial background are able to mitigate earnings management, irrespective of their outside directorships or tenure. We interpret our findings within a theoretical framework that draws on a number of economic and social theories. The results are generally robust after controlling for potential endogeneity problems.
Alaa Mansour Zalata; Collins G. Ntim; Mostafa Hussien Alsohagy; John Malagila. Gender diversity and earnings management: the case of female directors with financial background. Review of Quantitative Finance and Accounting 2021, 1 -36.
AMA StyleAlaa Mansour Zalata, Collins G. Ntim, Mostafa Hussien Alsohagy, John Malagila. Gender diversity and earnings management: the case of female directors with financial background. Review of Quantitative Finance and Accounting. 2021; ():1-36.
Chicago/Turabian StyleAlaa Mansour Zalata; Collins G. Ntim; Mostafa Hussien Alsohagy; John Malagila. 2021. "Gender diversity and earnings management: the case of female directors with financial background." Review of Quantitative Finance and Accounting , no. : 1-36.
The objective of this paper is two-fold. First, it assesses existing local accounting and financial reporting practices in Sub-Saharan Africa (SSA), focusing on the extent to which recent government financial statements published by ten selected countries adhere to mainstream qualitative features of public sector reporting. Second, it investigates the multiple institutional logics at play in the context of government accounting reforms (GARs) in SSA, involving international organisations, epistemic community members, policy makers and local actors. Data for the study are drawn from a content analysis and disclosure scoring of ten SSA government financial statements, supplemented by forty semi-structured interviews carried out in Nigeria and Tanzania. Our findings demonstrate how the generalised assumptive logics of international organisations, coupled with the market and professional logics of epistemic community members and state logics of local politicians, have led to the marginalisation of ‘good’ existing accounting and financial reporting practice in SSA (as reflected by the extent to which government financial statements adhere to mainstream features of public sector reporting) - while providing the countries with a strong impetus for undertaking a transition towards large-scale GARs involving accrual accounting and IPSASs. The role of the epistemic community in selectively ignoring the positive aspects of local accounting practice is a significant impediment. In this way, members of this epistemic community continue to execute their ‘relational power’ generated through professional knowledge, expertise and elite connections over the local actors, hence upholding the generalised assumptive logics. The paper argues that public accountability and transparency can be strengthened in SSA countries provided there is an ‘intelligent’ application of existing regulations and accounting systems, rather than seeking to merely replace them with externally imposed large-scale GARs.
Kelum Jayasinghe; Pawan Adhikari; Teerooven Soobaroyen; Andy Wynne; John Malagila; Noah Abdurafiu. Government accounting reforms in Sub-Saharan African countries and the selective ignorance of the epistemic community: A competing logics perspective. Critical Perspectives on Accounting 2020, 78, 102246 .
AMA StyleKelum Jayasinghe, Pawan Adhikari, Teerooven Soobaroyen, Andy Wynne, John Malagila, Noah Abdurafiu. Government accounting reforms in Sub-Saharan African countries and the selective ignorance of the epistemic community: A competing logics perspective. Critical Perspectives on Accounting. 2020; 78 ():102246.
Chicago/Turabian StyleKelum Jayasinghe; Pawan Adhikari; Teerooven Soobaroyen; Andy Wynne; John Malagila; Noah Abdurafiu. 2020. "Government accounting reforms in Sub-Saharan African countries and the selective ignorance of the epistemic community: A competing logics perspective." Critical Perspectives on Accounting 78, no. : 102246.
PurposeThis paper aims to investigate the association among trustee board diversity (TBD), corporate governance (CG), capital structure (CS) and financial performance (FP) by using a sample of UK charities. Specifically, the authors investigate the effect of TBD on CS and ascertain whether CG quality moderates the TBD–CS nexus. Additionally, the authors examine the impact of CS on FP and ascertain whether the CS–FP nexus is moderated by TBD and CG quality.Design/methodology/approachThe authors use a number of multivariate regression techniques, including ordinary least squares, fixed-effects, lagged-effects and two-stage least squares, to rigorously analyse the data and test the hypotheses.FindingsFirst, the authors find that trustee board gender diversity has a negative effect on CS, but this relationship holds only up to the point of having three women trustees. The authors find similar, but relatively weak, results for the presence of black, Asian and minority ethnic (BAME) trustees. Second, the authors find that the TBD–CS nexus depends on the quality of CG, with the relationship being stronger in charities with higher frequency of meetings, independent CG committee and larger trustee and audit firm size. Third, the authors find that CS structure has a positive effect on FP, but this is moderated by TBD and CG quality. The evidence is robust to different econometric models that adjust for alternative measures and endogeneities. The authors interpret the findings within explanations of a theoretical perspective that captures insights from different CG and CS theories.Originality/valueExisting studies that explore TBD, CG, CS and FP in charities are rare. This study distinctively attempts to address this empirical lacuna within the extant literature by providing four new insights with specific focus on UK charities. First, the authors provide new evidence on the relationship between TBD and CS. Second, the authors offer new evidence on the moderating effect of CG on the TBD-CS nexus. Third, the authors provide new evidence on the effect of CS on FP. Finally, the authors offer new evidence on the moderating effect of TBD and CG on the CS–FP nexus.
Mohamed H. Elmagrhi; Collins G. Ntim; John Malagila; Samuel Fosu; Abongeh A. Tunyi. Trustee board diversity, governance mechanisms, capital structure and performance in UK charities. Corporate Governance: The International Journal of Business in Society 2018, 18, 478 -508.
AMA StyleMohamed H. Elmagrhi, Collins G. Ntim, John Malagila, Samuel Fosu, Abongeh A. Tunyi. Trustee board diversity, governance mechanisms, capital structure and performance in UK charities. Corporate Governance: The International Journal of Business in Society. 2018; 18 (3):478-508.
Chicago/Turabian StyleMohamed H. Elmagrhi; Collins G. Ntim; John Malagila; Samuel Fosu; Abongeh A. Tunyi. 2018. "Trustee board diversity, governance mechanisms, capital structure and performance in UK charities." Corporate Governance: The International Journal of Business in Society 18, no. 3: 478-508.
Andrew Goddard; Mussa Assad; Siasa Issa; John Malagila; Tausi A. Mkasiwa. The two publics and institutional theory – A study of public sector accounting in Tanzania. Critical Perspectives on Accounting 2016, 40, 8 -25.
AMA StyleAndrew Goddard, Mussa Assad, Siasa Issa, John Malagila, Tausi A. Mkasiwa. The two publics and institutional theory – A study of public sector accounting in Tanzania. Critical Perspectives on Accounting. 2016; 40 ():8-25.
Chicago/Turabian StyleAndrew Goddard; Mussa Assad; Siasa Issa; John Malagila; Tausi A. Mkasiwa. 2016. "The two publics and institutional theory – A study of public sector accounting in Tanzania." Critical Perspectives on Accounting 40, no. : 8-25.