Zusammenfassung:
The aim of this study was to examine the moderating effect of ownership concentration (OC) on the relationship between impactful female directors and earnings management (EM). The study concentrated on firms with the lowest positive earnings, measured by return on assets. The results showed that OC positively moderated the association between impactful female directors and accrual earnings management (AEM). With the moderating effect of OC, impactful female directors became positively associated with AEM. In terms of real earnings management (REM), the results showed that OC weakened the significant negative relationship between impactful female directors and REM that was found in the direct regression. With the moderating effect of OC, impactful female directors became insignificantly associated with REM. The study is extremely beneficial to policymakers, stakeholders, researchers, and society. It provides empirical findings that could help all parties to re-evaluate the role of the board of directors, specifically impactful female directors, in mitigating EM. The results highlight the impact of the majority shareholders, introduced by agency theory II, an issue that requires more solutions from regulators.