Impact of ownership structure and cross-listing on the role of female audit committee financial experts in mitigating earnings management

Abstract

This study investigates whether female Audit Committee Financial Experts (ACFEs) at Chinese listed companies reduce earnings management by examining their influence under different ownership structures and cross-listing scenarios. Our findings reveal that female ACFEs negatively affect earnings management, with their impact varying by ownership type. Specifically, female ACFEs in privately owned enterprises (non-SOEs) are more effective at reducing earnings management than those in state-owned enterprises (SOEs). Furthermore, our analysis indicates that female ACFEs in cross-listed firms are better at mitigating earnings management compared with their counterparts in domestically listed firms. These results have significant implications for regulators, market authorities, investors, and corporate managers, highlighting the crucial role of female ACFEs in improving corporate transparency across diverse ownership frameworks and cross-listing conditions.