Female Board Directorship and Earnings Management: The Moderating Role of Corporate Social Responsibility

Abstract

This study explores the moderating role of corporate social responsibility (CSR) in the relationship between female directors and earnings management. Based on agency theory and stakeholder theory, this study proposes that a higher proportion of women on corporate boards corresponds to lower levels of earnings management, and that corporate participation in CSR activities reinforces this relationship. CSR performance was measured using ESG ratings and overall CSR disclosure scores. This study employs a quantitative approach, based on raw data collected through a structured questionnaire distributed online (e.g., Google Forms). Respondents included individuals involved in corporate governance, financial reporting, and sustainability practices, specifically directors, audit committee members, chief financial officers, finance managers, and sustainability managers. The questionnaire used a five-point Likert scale to collect respondents' perceptions, with items adapted from tools already available in the literature on gender diversity and earnings management. Purposeful sampling was used to ensure participants had relevant knowledge and experience. The findings highlight the complementary roles of gender diversity and corporate social responsibility in improving financial reporting quality and corporate governance, thus contributing to both theory and practice. Furthermore, the findings offer important insights for policymakers and business leaders committed to promoting transparent, sustainable, and ethical organizational development.