Gender Diversity and Accounting Conservatism
In this study, we examine the relationship between CFO gender and accounting conservatism. Using a sample of 361 French companies between 2010 and 2017, we focus on the interaction between operational cash flows and accruals to reflect a more timely loss recognition in firms’ reported earnings. Our results confirm that women CFO adopt more conservative accounting policies. They report more bad news into earnings which indicates higher level of accounting conservatism in firms with female CFO. The impact of CFO gender on earnings quality is therefore important and argues for a broader representation of women in senior decision-making positions.