The effect of the presence of women in the board of directors on the model of financial disorder

Subject Areas : Financial Economics

mehdi Shahmoradi ¹ , Farhad hanifi ^{2 *} , Zadollah Fathi ³

1 - Department of Financial Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran
2 - Department of Financial Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran
3 - Department of Financial Management, Central Tehran Branch, Islamic Azad University, Tehran, Iran

Received: 2022-09-04 Published : 2025-12-09

Keywords: Managers&#039, opportunistic behavior, financial irregularities, women board directors,

Abstract :

Based on the theory of gender socialization, women and men show different values when exposed to different moral development. Gender diversity expresses the differences in the moral and personality characteristics of men and women, and people's actions are a reflection of their inner thoughts and feelings. Therefore, the presence of women in the composition of the board of directors increases the effectiveness of the organization and reduces the representation costs of companies, and this also reduces financial irregularities in companies through the opportunistic behavior of managers; Therefore, it seems that many companies are involved in financial irregularities, and for this reason, it is very important to determine the factors affecting the level of financial irregularities in companies, for this purpose, the indigenous model of Hanifi et al. (2022) has been used. Therefore, in this research, data from 167 companies during the years 2010 to 2021 has been used. The obtained results show that the presence of female members in the board of directors has an impact on the local model of financial disorder. This means that women, by using more supervision over the board of directors and their conservative behavior, always reduce the financial disorder in the company.