Do auditor and CFO gender matter to earnings quality? Evidence from Sweden

Scientific and Journal Articles

International Recognition

Details: Category: Scientific Articles; By FEB Unair; 23.Mar.2021

Title : Does auditor and CFO gender matter to earnings quality? Evidence from Sweden
Author(s) : Damai Nasution , Karin Jonnergård
DOI : https://doi.org/10.1108/GM-06-2016-0125

Abstract

Purpose This study aims to examine the association between auditor and chief financial officer (CFO) gender and earnings quality, utilizing data from Sweden. This study also aims to examine whether interactions between auditor and CFO, which may affect a firm's earnings quality, are associated with their gender. These aims are inspired by the notion that gender differences will be overruled by the rewards and socialization into the occupational roles as suggested by the structural approach to gender.

Design/methodology/approach This study uses a multivariate regression model to test its hypotheses. The sample consists of 976 firm-year observations covering the period 2008 to 2013.

Findings The results show that gender of the auditor and CFO is not associated with earnings quality, and the interactions between auditors and CFOs, which may affect earnings quality, are not associated with their gender. Consequently, the results give tentative support for the structural approach in gender studies in the accounting and auditing field.

Research limitations/implications This study indicates that future research in gender studies should consider a structural approach based on the argument of gender similarities. This approach contends that work-related behavior of women will more resemble men, and this is caused by the socialization process into the occupational role and the structure in which they work (eg organizational and professional culture, work conditions, a compensation scheme, national culture, etc.) instead of gender.

Originality/value This study contributes to the understanding whether gender – auditor and CFO gender – is associated with firms' earnings quality and standing whether the interactions between auditor and CFO are associated with their gender, something that, to the best of the authors' knowledge , has not been tested previously. It also re-introduces the structural approach within the gender research in the accounting and auditing field.

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