Women on Company boards foster better financial reporting

 

NOVEMBER 30, 2012 Friday  Why Firms with Female Directors Make Fewer Financial Mistakes Companies whose directors include one or more women are 38% less likely to have to restate their financial-performance figures to correct errors than firms with all-male boards, says a team led by Lawrence J. Abbott of the University of Wisconsin-Milwaukee. Gender diversity may make a board more open to viewpoints that oppose the CEO's and may encourage a more deliberative and collaborative decision-making process, according to the research, published in the American Accounting Association journal Accounting Horizons. Source: Women on corporate boards foster better financial reporting, study finds