A Study On The Correlation Between The Earnings Quality Of Female Executives And Listed Companies

Earning is the most comprehensive and important financial information. The earning quality reflects the management level of enterprise management authorities and it affectsthe interests of creditors,investors and other related entity. The existing literature has verified thatimprove the executive team heterogeneity can optimize the corporate governance structure, and finally improve enterprise performance in all respects. The population characteristics of Top Management Team(TMT) including gender, age, education level, nationality, etc. This paper wants to study the correlation between Female Senior Manager and earnings quality of listed companies. So far, the domestic and foreign scholars pay more attention to the relationship between female executives and corporate performance, but less attention to the relationship between female executives and the most important financial information--the earning quality. In this article, we made a deep research on the relationship of female executives and earnings quality. The main research questions are: whether there is a correlation between Female Senior Managers and the Earnings Quality.This paper uses factor analysis and regression analysisto verify the research hypothesis, and this paper concludes include:(1) The results of the descriptive statistics showed that the proportion of female executives in Chinese listed companies showed a trend of increasing year by year, which means women play a more and more important role in the society. Moreover female executives are mainly distributed in the business industry, which is an industry leads by the consumer; And in a male-dominated industry, in which the proportion of female executives is lowest, is likely to show that the appointment of female executives in the industry mainly depends on the significance of symbolism.(2) The results of the regression analysis showed that there is a positive correlation between Female Senior Managers and the Earnings Quality. The results showed that the listed companies as the sample, through increasing the number of female executives can improve the earnings quality of listed companies.This may be because, with the improvement of Female executives’ education level and job promotion, the influence of women in the management of the company is no longer restricted like once upon a time, the senior female executives are no longer just a symbolic of the seats, and the influence to the company’s intervention is becoming more and more big, the decisions making are no longer dominated by men, the opinions of female executives also increases gradually.(3)The results of robustness test showed that there is a positive correlation betweenChairwomen and the Earnings Quality, Female CFO either.But the result of Female CFO is not very significant, probably because the number of the appointment of Female CFO in Chinese listed companies is more than others, which has meet the needs of the gender needs of CFO, so it would not have extremely significant positive effects on company earnings quality to increase the number of Female CFO, it may also be because Chinese CFO system is not perfect enough, the CFO may be under the pressure from the top, many CFO can’t get into the board to participate in the decision.