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Alpha Architect: Battle of the Sexes, Who’s Better at Fudging the Numbers?

19 Jan 2021
This AMJ study confirms the relation between gender and corporate misconduct such as earnings quality and securities fraud: firms with female CFOs have a lower likelihood of financial misstatement.

Originally found at Alpha Architect, by Elisabetta Basilico.

There are estimates that although approximately 15% of public firms may engage in accounting fraud annually, but less than 1% are actually caught. It can be important to develop tools for diagnosing financial misreporting like the Financial Statement Deviation (FSD) to measure the level of irregularities in financial statements (higher the FSD Score and the greater the likelihood that numbers in the financial statement contain errors and/or were manipulated) without the need of accounting data. By using FSD, this paper investigates whether executive gender has an impact on corporate decisions and actions. 


Continue reading the original article at Alpha Architect.

Read the original research in Academy of Management Journal.

Also read this AOM Insights summary citing this research.

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