Audit committee status and gender diversity: Implications for real earnings management

Publication Type

Journal Article

Publication Date

12-2025

Abstract

This study investigates how audit committee status and gender diversity jointly influence real earnings management (REM) during the COVID-19 crisis in Indonesian manufacturing firms. We find that higher audit committee status is associated with a significant reduction in REM, and this effect is strengthened when female members are present. While the underlying mechanisms remain to be further explored, our findings suggest that gender diversity, combined with meaningful status, may enhance governance effectiveness in emerging markets characterized by weak investor protection. Overall, the results contribute to a better understanding of how status and gender dynamics interact within audit committees, offering practical insights for improving oversight during periods of crisis.

Keywords

Audit committee, Gender diversity, Real earnings management

Discipline

Accounting | Finance and Financial Management

Publication

Finance Research Letters

Volume

86

First Page

1

Last Page

9

ISSN

1544-6123

Identifier

10.1016/j.frl.2025.108433

Publisher

Elsevier

Additional URL

https://doi.org/10.1016/j.frl.2025.108433

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