Study the Relationship between Audit Committee Fnancial Expertise, Gender, and Earnings Management

Mehrdad Sadrara¹ Mohsen Mohammad Nourbakhsh Langroudi² Abdollah Mohajeri³

1) Assistant Professor of Accounting, Faculty of Literature and Humanities, University of Guilan, Rasht, Iran
2) Faculty Member of Mehrastan University, Astaneh, Iran
3) Master of Accounting student, Rahbord Shomal University, Rasht, Iran

IOI Code : XBZK-DABAZ
Publication : national Congress on management economics accountanat(emacong.com)
Abstract :
    The main purpose of this study is to investigate the relationship between financial expertise, gender audit committee and Earnings management in companies admitted to the Tehran Stock Exchange. In this research, the criteria for gender diversification of the audit committee, financial expertise and size of the audit committee, the size and independence of the board were selected as independent variables and their relationship with earnings management. To measure earnings management, the modified Dichoo and Dichof (2002) model, presented by Mac Nichols, has been used. In order to test the research hypotheses, 600 observation (company-year) was selected from 1391 to 1395 and analyzed using regression analysis based on panel data. Based on the results of the analysis of assumptions, it can be stated that at the level of confidence 95% of the financial expertise of the Audit Committee has a negative and significant effect on the management of earnings, that is, increasing the financial expertise of the audit committee will reduce the management of profits. The audit committee s gender has no significant effect on earnings management. Also, the ratio of women s financial experts to the audit committee has no significant effect on earnings management, but the ratio of male financial experts to the audit committee has a significant effect on earnings management. This finding suggests that the ratio of male financial experts to the audit committee is more effective than the female financial experts on earnings management.

Keywords : audit committee earnings management gender diversity financial expertise