Saturday, December 1, 2012

The Daily Stat: Why Firms with Female Directors Make Fewer Financial Mistakes

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NOVEMBER 30, 2012
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
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