Board Gender Diversity and Earnings Quality

The impact of board gender diversity on earnings quality has garnered significant scholarly attention due to its implications for corporate governance and financial reporting integrity. Despite regulatory efforts to promote gender inclusivity, the extent to which board gender diversity enhances earnings quality remains inconclusive. This study investigates the relationship between board gender diversity and earnings quality in Nigeria's 150 publicly traded firms, addressing the persistent concerns of earnings manipulation and financial misrepresentation. The study adopts a quantitative research design, utilizing a panel dataset of ten years. Employing the ordinary least squares (OLS) regression analysis, the study examines how the proportion of female directors influences earnings quality, measured using discretionary accruals. Findings reveal a positive association between board gender diversity and earnings quality, suggesting that female directors enhance financial transparency and mitigate earnings management practices. The results support the argument that diverse boards contribute to stronger oversight and ethical decision-making in financial reporting. This study contributes to the literature by offering empirical evidence from an emerging market perspective, where board diversity initiatives are still evolving. Unlike prior studies that focus predominantly on developed economies, this research provides insights into the governance dynamics of firms operating in regulatory environments with weaker enforcement mechanisms. The findings have implications for policymakers, investors, and corporate boards seeking to enhance financial reporting quality through gender-inclusive governance structures.