Are female CFOs more ethical to the occurrences of financial reporting fraud? Theoretical and empirical evidence from cross-listed firms in the US
ISSN: 1359-0790
Article publication date: 20 September 2022
Issue publication date: 30 November 2023
Abstract
Purpose
The purpose of this study is to examine whether female chief financial officers (CFOs) are associated with the occurrences of financial reporting fraud. This study offers new theoretical and empirical evidence on whether firms with more female CFOs are more (less) likely to engage in financial reporting fraud.
Design/methodology/approach
This study is based on a sample of US-listed firms from 2011 to 2021. The authors speculate that female CFOs play a weaker role in the occurrences of financial reporting fraud. So, firms with a proportional number of female CFOs should be less likely to commit financial reporting fraud.
Findings
The data provide support for the predictions of this study. This study suggests a negative and significant association between the dummy variables for female CFOs and the occurrences of financial reporting fraud. The authors find that this association is contingent on governance mechanisms [e.g. ownership structure, politically connected CEOs and firms' conditions that do (or do not) invest in a gender-diverse board].
Originality/value
This study offers different perspectives on the impact of female CFOs on the occurrences of financial reporting fraud. The results of this study are distinguishable from prior studies. This study moves the analytical focus from the macro level (gender diversity or female corporate leaders) to the micro level (female CFOs) to understand firms' propensity to commit financial reporting fraud. Additionally, this study is based on factual financial reporting fraud cases, considering the US firms' fraud characteristics.
Keywords
Acknowledgements
The authors would like to thank the editor-in-chief and the anonymous reviewers for their helpful and constructive comments that greatly contributed to improving the final version of the manuscript.
Retraction notice: The publishers of Journal of Financial Crime wish to retract the article “Are female CFOs more ethical to the occurrences of financial reporting fraud? Theoretical and empirical evidence from cross-listed firms in the US” by A. Maulidi, N. Shonhadji, Fachruzzaman, R.P. Sari, D.A. Nuswantara, and R. Widuri which appeared in Volume 30, Issue 5, 2023.
It has come to our attention that statistical errors are present within the article and therefore the findings cannot be relied upon.
As part of an investigation into the article’s findings, the authors were requested to provide a copy of the dataset so that the editorial team could verify the findings. The authors were unable to provide the dataset and stated they had committed statistical errors. The author would like to note that any wrongdoing was unintentional.
This article has been retracted at the authors’ request.
The author guidelines of the Journal of Financial Crime make it clear that submitted articles must include data free from errors that may affect the understanding of the article.
The journal sincerely apologises to its readers.
Citation
Maulidi, A., Shonhadji, N., , F., Sari, R.P., Nuswantara, D.A. and Widuri, R. (2023), "Are female CFOs more ethical to the occurrences of financial reporting fraud? Theoretical and empirical evidence from cross-listed firms in the US", Journal of Financial Crime, Vol. 30 No. 5, pp. 1342-1366. https://doi.org/10.1108/JFC-07-2022-0170
Publisher
:Emerald Publishing Limited
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