THE IMPACT OF BOARD GENDER DIVERSITY ON THE RELATIONSHIP BETWEEN CORPORATE SOCIAL RESPONSIBILITY AND REAL EARNINGS MANAGEMENT IN FRENCH LISTED COMPANIES
Abstract
This paper investigates the relationship between corporate social responsibility (CSR) and real earnings management (REM) in French listed companies from 2005 to 2019. It also examines the moderating effect of board gender diversity on this relationship. The study finds that there is a positive relationship between CSR and REM. However, this relationship is moderated in firms with higher board gender diversity. Female directors display a high level of socially responsible behavior and are negatively associated with earnings management practices. These results suggest that companies with higher CSR performance may engage in high discretionary behavior, such as REM. Our study highlights the importance of board gender diversity in reducing agency costs and ensuring higher monitoring. It also recommends further research to examine the relationship between CSR and earnings management in other national legal environments and international contexts.