Our study examines whether gender-diverse engagement partners constrain unethical earnings management behavior in a French mandatory joint audit setting. The investigation of the joint audit setting, by raising concerns about audit team organization and management, provides new insights into how gender-diverse audit partners contribute to the effectiveness of audit decision-making, resulting in reduced earnings management. The need for effective collaboration and communication between joint auditors may foster a transformational leadership style on the part of audit engagement partners. In this regard, (...) we argue that better interaction between male and female lead audit partners confers a comparative advantage on gender-diverse audit partners compared to all-male audit partners. In line with our expectation, our empirical results show that gender-diverse audit partners are negatively associated with discretionary accruals of client firms. Gender-diverse audit partners are also found to constrain earnings management irrespective of whether clients hire one or two brand-name audit firms. Finally, we find that the pervasiveness of earnings management declines when client firms switch from all-male audit partners to gender-diverse audit partners. Our findings underline the importance of considering audit partner gender by policy makers in contexts where joint audits are required or in countries that are considering introducing joint audits. (shrink)

Research on academic pay finds an unexplained gender pay gap that has not fully dissolved over time and that appears to increase with years of experience. In this study, I consider how role congruity bias contributes to this pay gap. Bias is more likely to manifest in a context where there is some ambiguity about performance and where stereotypes are stronger. I predict that bias in the attribution of credit for coauthored research leads to lower returns to research for female (...) professors. To test this prediction, I use a sample of Canadian faculty in accounting, where research is typically coauthored, where females are underrepresented at the most senior ranks, and where many universities evaluate merit in research, teaching, and service to determine salary increases. In regressions of salary on individual and institutional determinants of salary, I find that women earn marginally less than men. However, the pay gap is only evident for women who publish in a selective list of journals; for the subset of faculty with no publications from this list, there are no significant differences in salary. For researching faculty, the pay gap relates specifically to research productivity. While women publish less on average than men, the returns to their research are also lower. In particular, the relation between the individual’s research ranking and salary is significantly lower for women who publish a higher proportion of their work with men, than for all other faculty. Additional analysis of salary and coauthor patterns confirms that women receive significantly less credit for coauthored articles they publish with men than those they publish with other women but that no similar variations in reward are evident for men across publishing patterns. These findings suggest bias in the attribution of credit for coauthored research in the determination of salary, consistent with role congruity theory, and provide an important potential explanation for why salaries for women vary systematically from those of men even after considering productivity. Providing lower rewards for equal work represents a continuing ethical issue in academe and compounds the challenges women already facing in the profession. (shrink)

Extant research notes a tendency to propound the idea that female managers are secondary to men. Gender differences constitute an ethical issue and the discursive constructions of gender management are central to research in business ethics. Drawing on evidence gathered from a time–space intersection that has been widely neglected by research in this area, we address whether female business leaders develop gender-stereotypic management styles as well as their propensity to adopt masculine management patterns such as making risky decisions and implementing (...) formal management systems. Our findings suggest that gender-stereotypic management styles are chosen strategically and target-driven, which implies a selective use of masculine and feminine management styles. Furthermore, as part of the masculine approach, female business owners adopt risk-taking decisions and implement formal management systems. Our results provide support for the argument that gender is context dependent and, hence, the findings of this study may be useful for contemporary jurisdictions featuring male-dominated societies and a strong intervention by the State in the economy. (shrink)

Men typically express more willingness than women to perpetrate fraudulent acts like lying in negotiations. However, women express just as much willingness in some cases. We develop and test a theory to explain these mixed findings. Specifically, we hypothesize that situational cues that bring about competitive or empathic feelings mitigate sex differences in lying to negotiation counterparts. Results from four experiments confirm our hypotheses. Experiment 1 showed that men and women express equal willingness to lie when negotiating with counterparts toward (...) whom they felt either great competitiveness or empathy. Experiment 2 extended these results by confirming that men only express more willingness to lie absent competitive or empathic feelings towards a counterpart. Experiments 3 and 4 demonstrated that inducing competitive or empathic feelings toward a counterpart eliminated sex differences in lying by leading women to lie more and men to lie less, respectively. Overall, our results suggest that the extent to which negotiators experience competitive or empathic feelings play important roles in whether sex differences in lying in negotiations emerge. (shrink)

We examine the impact of employing a female, versus a male, leader on future (t + 1) donations and operating margin using a sample of 4387 unique nonprofit organizations (NPOs) between 2011 and 2014. Using two-stage and matched sample designs, we find that NPOs headed by female leaders report higher future operating margins but lower future donations. We interpret these findings to mean that female leaders are more focused on fiscal responsibility than fundraising. We also find that female leaders with (...) past fundraising experience attenuate lower future donations, and at commercial nonprofits, female leaders with prior for-profit experience contribute to even higher operating margins. Moreover, while female leaders identified as the founder of the organization increase future donations, they have no effect on future operating margins. Collectively, the results of our study should increase nonprofit boards’ confidence in hiring female leaders thereby narrowing the gender disparity in leadership in the nonprofit sector. This study expands the extant literature by providing initial evidence on the effects of female leaders in NPOs thereby contributing to research exploring gender, diversity, management, and nonprofit executives. (shrink)

Unethical decision-making behavior within organizations has received increasing attention over the past ten years. As a result, a plethora of studies have examined the relationship between gender and business ethics. However, these studies report conflicting results as to whether or not men and women differ with regards to business ethics. In this article, we propose that gender identity theory [Spence: 1993, Journal of Personality and Social Psychology 64, 624–635], provides both the theory and empirical measures to explore the influence of (...) psychological gender traits and gender-role attitudes on ethical perceptions of workplace behaviors. Statistical analyses of the data reveal that based on sex alone, no differences occur between men and women in their ethical perceptions. Yet, when a multidimensional approach to gender is applied, results show that expressive traits and egalitarian gender-role attitudes contribute to both men’s and women’s propensity to perceive unethical workplace behaviors as unethical. The implications of these findings and suggestions for future research are presented. (shrink)

This study constitutes a contribution to the discussion about moral reasoning in business. Kohlberg’s (1971, in Cognitive Development and Epistemology (Academic Press, New York), 1976, in Moral Development and Behavior: Theory and Research and Social Issues (Holt, Rienhart and Winston, New York)) cognitive moral development (CMD) theory is one explanation of moral reasoning. One unresolved debate on the topic of CMD is the charge that Kohlbergian-type CMD theory is gender biased. This research puts forth the proposal that the issue may (...) be elucidated by exposing an ambiguity in “gender” (Borna and White: 2003, Journal of Business Ethics 47, 89–99; Gentile: 1993, Psychological Science 4(2), 120–122; Unger: 1979, American Psychologist 34(11), 1085–1094). We use the Sociomoral Reflective Objective Measure (SROM) to measure CMD and the Bem Sex Role Inventory (BSRI) to measure gender as a psychosocial concept, rather than as a biological classification. The results of our study indicate that high femininity, measured as a psychosocial attribute, is associated with significantly lower Kohlbergian-type CMD scores among business practitioners. Sex moderates the effect of gender on CMD, but only indirectly. Our research also reveals that education plays a significant moderating role in the relationship between gender and moral reasoning. In addition, age has a significant direct effect on CMD scores of business practitioners. (shrink)