Impact of Gender Diversity on Real Earnings Management: Evidence from BRIC Public Listed Non-Financial Firms

Weak corporate governance (CG) practices have been cited as a major factor that causes financial disasters. However, gender diversity (GD) is considered one of these factors that can reduce the effects of such crises. This study, uses 712 publicly listed firms from 2017 to 2022, to investigate the effect of GD on real earning management (REM). Control variables such as firm size, leverage, current ratio, and state-owned enterprises are also used in this study. The findings of this study report that there is a statistically significant relationship between REM with GD. It means that companies having a female on board less engage in REM. Furthermore, the findings of this study can help policymakers, practitioners, and researchers create focused interventions and strategies that will support GD and sustainable business practices in the BRIC economies. Therefore, results suggest encouraging GD in the board to reduce the level of REM.