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- Title
Do the Properties of Analyst Earnings Forecasts Improve When Firms Are Managed by Female CFOs?
- Authors
INDUCK HWANG; HYUNG TAE (TED) KIM; SANGSHIN (SAM) PAE
- Abstract
Using 1,021 CFO transitions, we find that analyst earnings forecasts become more dispersed after male CFOs are changed to male CFOs, whereas such deterioration in forecast dispersion is much weaker following male-tofemale CFO transition. The result suggests that female CFOs mitigate the impact of CFO transitions on analyst earnings forecasts. We also document more accurate and consistent analyst earnings forecasts for female-CFO-led companies compared to firms with male-CFO-led companies. Overall, our findings suggest that the quality of analyst earnings forecasts is better when firms are managed by female CFOs. This study provides empirical evidence of benefit from female executives in line with existing gender studies in accounting and finance literature. Rather than female executives' managerial behavior, this study examines how female CFOs affect the quality of analysts' forecasts and supports previous findings that female CFOs tend to report financial information with better quality and make more prudent corporate decisions.
- Subjects
CHIEF financial officers; FINANCIAL management; WOMEN employees; BUSINESS forecasting; CORPORATE profits
- Publication
Quarterly Journal of Finance & Accounting, 2017, Vol 55, Issue 1/2, p27
- ISSN
1939-8123
- Publication type
Article