Does Female Senior Management Affect Accounting Conservatism

With the economic development and progresses of feministicideological consciousness, women’s status has been significantlyimproved. More female executives are also playing roles indecision-making and management of the company increasingly. Nevertheless,the status of female in leadership has not changed much correspondingly,although the level of women’s education are keep improving and the womenpositions continue to advanced change, the trigger button is still inman`s hand exclusively. The metaphor of “The glass ceiling” identifiedthe unseen, yet unbreachable barrier that keeps minorities and women fromrising to the upper rungs of the corporate ladder, regardless of theirqualifications or achievements. In the meanwhile, in the market economy,business will implement robustness process to defuse the inevitable andpotential risks. accounting conservatism will absolutely help theenterprises to make the right business decisions, also to protect theinvestments of the owners and creditors, and to improve thecompetitiveness of enterprises in the market. Therefore, accountingconservatism draws more attentions to the leadership.Numerous researches have shown that there are many differences inpersonality, logic, ways of problems solving, risk appetite between malesand females. Women have lower risk appetite and more cautious andconservative in financial investment decision-making. So will accountingconservatism of corporate accounting be influenced by the specificqualities that women maintained if women are working as executives? Thearticle listed our company as a sample, conducted empirical analysis ofthe issue by reference Basu Accounting Conservatism model. Meanwhile, dueto the extraordinary status of the CEO and CFO of the executive team(compared with other executives, relatively extreme impact will occur onfinancial data and financial decisions of the company),this articleverified whether or how much corporate Accounting Conservatism couldimpacted by the female CEOs and female CFOs by reference listed companydata. The results show that the presence of female executives in theexecutive team will significantly improve the accounting conservatism,female CEO, as well as female CFO also lead the company’s accounting conservatism to meaningfully improving. Dramatically, in thoseenterprises which have the CEO and CFO both for females, the accountingconservatism has not changed distinctly.