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Gender Diversity and likelihood of Financial Restatement likelihood: Group Dynamics Theory Testing

    Authors

    • Mostafa Abdi 1
    • Mahdi Kazemi 2
    • hayedeh rezaeeyan 3
    • helya nayeri 4

    1 ZANJAN

    2 Phd

    3 MSc in Accounting, Hamadan Branch, Islamic Azad University, Hamadan, Iran.

    4 MSc in Accounting, Neyshaboor Branch, Islamic Azad University, Neyshaboor, Iran.

,

Document Type : Research Paper

10.30479/jfak.2020.12241.2602
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Abstract

Objective: According to group dynamics theory, individual behavior is influenced by group characteristics. Group dynamics can influence decisions and improve group thinking. Gender diversity as one of the group dynamics mechanisms in the board and audit committee, can lead to the ability to maintain and enhance members' intellectual independence and expand the culture of group thinking by improving heterogeneity and ultimately improving the ability of members of the leadership system to oversee financial reporting. The purpose of this study was to investigate the impact of the presence of at least one female representative on the directors’ board and the audit committee on the financial restatement with emphasis on group dynamics theory in firms listed on the Tehran stock exchange during the years 2014-2018.
Method:The data collection method was archived and a sample of 152 companies (760 observation) was selected and their data were analyzed using Logit regression analysis.
Results: Findings suggest that the presence of at least one female representative on the audit committee can reduce the financial restatement. But research evidence suggests that the presence of women on the board of directors does not have a significant effect on reducing the financial restatement.
Conclusion: The presence of women in the corporate governance system, especially the audit committee, improves the financial reporting quality.
Contribution: These findings are in line with group dynamics theory and group thinking.

Keywords

  • Audit Committee
  • Board
  • Financial Restatement
  • Gender Diversity
  • Group Dynamics
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Financial Accounting Knowledge
Volume 7, Issue 3 - Serial Number 26
November 2020
Pages 145-166
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  • Article View: 1,079
  • PDF Download: 996

APA

Abdi, M. , Kazemi, M. , rezaeeyan, H. and nayeri, H. (2020). Gender Diversity and likelihood of Financial Restatement likelihood: Group Dynamics Theory Testing. Financial Accounting Knowledge, 7(3), 145-166. doi: 10.30479/jfak.2020.12241.2602

MLA

Abdi, M. , , Kazemi, M. , , rezaeeyan, H. , and nayeri, H. . "Gender Diversity and likelihood of Financial Restatement likelihood: Group Dynamics Theory Testing", Financial Accounting Knowledge, 7, 3, 2020, 145-166. doi: 10.30479/jfak.2020.12241.2602

HARVARD

Abdi, M., Kazemi, M., rezaeeyan, H., nayeri, H. (2020). 'Gender Diversity and likelihood of Financial Restatement likelihood: Group Dynamics Theory Testing', Financial Accounting Knowledge, 7(3), pp. 145-166. doi: 10.30479/jfak.2020.12241.2602

CHICAGO

M. Abdi , M. Kazemi , H. rezaeeyan and H. nayeri, "Gender Diversity and likelihood of Financial Restatement likelihood: Group Dynamics Theory Testing," Financial Accounting Knowledge, 7 3 (2020): 145-166, doi: 10.30479/jfak.2020.12241.2602

VANCOUVER

Abdi, M., Kazemi, M., rezaeeyan, H., nayeri, H. Gender Diversity and likelihood of Financial Restatement likelihood: Group Dynamics Theory Testing. Financial Accounting Knowledge, 2020; 7(3): 145-166. doi: 10.30479/jfak.2020.12241.2602

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