Women directors and earnings volatility

Earnings volatility poses significant challenges to corporate stability and investor confidence, raising questions about the influence of board composition—particularly gender diversity—on financial reporting outcomes. This study investigates the relationship between the presence of women directors and earnings volatility among publicly listed firms. The purpose is to determine whether gender-diverse boards contribute to more stable earnings patterns. A panel dataset of 127 companies listed on the Nigerian Exchange from 2014 to 2023 was analyzed using a random effects regression model. The findings reveal a statistically significant negative relationship between the proportion of women on corporate boards and earnings volatility, suggesting that female directors enhance monitoring and reduce managerial opportunism. However, the study is limited by its focus on a single emerging market and the exclusion of financial firms, which may limit the generalizability of the findings. Practically, the results support policies promoting gender-diverse boards to strengthen financial governance and reduce earnings risk. Socially, the findings reinforce the case for inclusive corporate leadership as a pathway to enhanced economic stability. This study contributes original empirical evidence to the discourse on gender diversity and financial outcomes, particularly within underexplored emerging market contexts like Nigeria.