The role of female directors of companies listed on the Tehran Stock Exchange and its effect on the relationship between corporate social responsibility and earnings management

Subject Areas : Journal of Capital Market Analysis

mohamadreza hoseinimasoom ¹ (Assistant Professor of Accounting, Department of Accounting, Bojnourd Branch, Islamic Azad University, Bojnourd, Iran)
ali taghavi moghadam ² (Department of Accounting, Bojnourd Branch, Islamic Azad University, Bojnourd, Iran)

Received: 2022-01-17 Accepted : 2022-02-14 Published : 2022-02-20

Keywords: Corporate Social Responsibility, Female directors, Accrual-based earnings management,

Abstract :

The issue of women's economic presence and the role-playing of this group in the field of issues has been one of the topics of discussion in society. The main purpose of this study is to investigate the role of women in the board of directors of member companies of the Tehran Stock Exchange and its effect on the relationship between social responsibility and earnings management in these companies. In this study, information about 131 companies listed on the Tehran Stock Exchange during the years 2010 to 2019 has been collected. Social responsibility is measured by examining the dimensions of social participation, employee relationships, environmental performance, and product characteristics. The results of hypothesis testing show that there is a negative and significant relationship between social responsibility and earnings management. But there is no significant relationship between the presence of women in the board of directors and earnings management. Also, the presence of women in the board of directors does not have a significant effect on the relationship between social responsibility and earnings management. The overall results of the study indicate that although corporate social responsibility has reduced earnings management but in companies where the presence of women on the board is more prominent, there is no less earnings management. On the other hand, given that there are few women on the board of directors of companies their presence has not been able to have a significant effect on the relationship between social responsibility and earnings management.