TY - JOUR
T1 - CFO gender and financial reporting transparency in banks
AU - Janahi, Mohamed
AU - Millo, Yuval
AU - Voulgaris, George
N1 - Funding Information:
We would like to thank the Associate Editor and two anonymous referees for their insightful comments that have greatly benefitted the paper. We also gratefully acknowledge comments from Rong Ding, Joanne Horton, Xing Huan, Anastasia Kopita, Facundo Mercado, seminar participants at Warwick Business School, and the 2019 British Accounting and Finance Association (BAFA) annual conference.
Publisher Copyright:
© 2020 Informa UK Limited, trading as Taylor & Francis Group.
PY - 2021/2/11
Y1 - 2021/2/11
N2 - We investigate the effect of CFO gender on the timeliness of loan loss provision (LLP) reporting using a large sample of US banks from 2007 to 2016. Our findings show that women CFOs are associated with timelier forward-looking provisioning than men counterparts, suggesting that they follow a more transparent approach to financial reporting policies. Our results hold under different model specifications, including the use of bank and CEO fixed effects. We further address endogeneity concerns by showing that the timeliness of LLP reporting improves significantly for banks experiencing a man-followed-by-woman CFO transition. Overall, our study supports the notion that women CFOs are associated with higher financial reporting transparency and provides further insights into how CFO gender affects risk-aversion and ethics in banks, with wider implications about the importance of women’s representation in the finance-based industry.
AB - We investigate the effect of CFO gender on the timeliness of loan loss provision (LLP) reporting using a large sample of US banks from 2007 to 2016. Our findings show that women CFOs are associated with timelier forward-looking provisioning than men counterparts, suggesting that they follow a more transparent approach to financial reporting policies. Our results hold under different model specifications, including the use of bank and CEO fixed effects. We further address endogeneity concerns by showing that the timeliness of LLP reporting improves significantly for banks experiencing a man-followed-by-woman CFO transition. Overall, our study supports the notion that women CFOs are associated with higher financial reporting transparency and provides further insights into how CFO gender affects risk-aversion and ethics in banks, with wider implications about the importance of women’s representation in the finance-based industry.
KW - CFO gender
KW - corporate governance
KW - financial reporting transparency
KW - gender diversity
KW - loan loss provision
UR - http://www.scopus.com/inward/record.url?scp=85089459431&partnerID=8YFLogxK
UR - https://pureprojects.ppad.man.ac.uk/portal/en/publications/cfo-gender-and-financial-reporting-transparency-in-banks(6cf2e989-00d7-4b5b-aabc-b3b972b89fe4).html
U2 - 10.1080/1351847X.2020.1801481
DO - 10.1080/1351847X.2020.1801481
M3 - Article
SN - 1351-847X
VL - 27
SP - 199
EP - 221
JO - European Journal of Finance
JF - European Journal of Finance
IS - 3
ER -