To read this content please select one of the options below:

Financial reporting quality and the effects of CFO gender and board gender diversity

Justin G. Davis (Department of Business, Universitat Autònoma de Barcelona, Barcelona, Spain)
Miguel Garcia-Cestona (Department of Business, Universitat Autònoma de Barcelona, Barcelona, Spain)

Journal of Financial Reporting and Accounting

ISSN: 1985-2517

Article publication date: 16 September 2021

Issue publication date: 5 April 2023




The purpose of this study is to examine the effects of chief financial officer (CFO) gender, board gender diversity and the interaction of both factors on financial reporting quality (FRQ) proxied by restatements.


Restatements indicate inaccurate financial reporting. The authors use fixed effects conditional logistic regression models to compare firms with and without restatements matched by size, industry and year. The authors’ unique matched–pair sample consists of 546 listed US firms from the period 2005–2016.


The authors’ results provide evidence that restatements are less likely when the CFO is a woman and when a higher proportion of women serve on the board of directors (BOD). Considering the interaction effects, the authors find evidence that women on the BOD are more effective at reducing restatement likelihood when the CFO is also a woman. And that although female CFOs reduce restatement likelihood generally, they have no statistically significant effect on restatement likelihood when the BOD is all-male.


To the best of the authors’ knowledge, this study is the first that the authors know of to consider how FRQ is affected by the interaction effects of CFO gender and board gender diversity. The findings corroborate upper echelons theory and extend the understanding of the effects of managerial gender diversity at a time when firms face growing pressure to increase gender diversity at the highest levels. The unique sample, methodology and findings provide new insights into the impact of gender on FRQ that has important policy implications.



The authors gratefully acknowledge Esteban Lafuente for helpful comments regarding the econometric approach. They thank the editor Aziz Jaafar and two anonymous reviewers for their thoughtful comments and help throughout the review process. This research received financial support from the Spanish Ministry of Science and Innovation (grant number: ECO2017-86305-C4-2-R).


Davis, J.G. and Garcia-Cestona, M. (2023), "Financial reporting quality and the effects of CFO gender and board gender diversity", Journal of Financial Reporting and Accounting, Vol. 21 No. 2, pp. 384-400.



Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

Related articles