BOARD GENDER DIVERSITY, ESG AND EARNINGS MANAGEMENT: EVIDENCE FROM THE SOUTHEAST ASIAN FIRMS

Abstract

Purpose – This study aims to investigate how board gender diversity (BGD) affects earnings management (EM) and how environmental, social and governance (ESG) engagement moderates this relationship in Southeast Asian firms. It addresses the limited evidence on how gender-inclusive boards and sustainability practices jointly enhance financial reporting quality in emerging cross-country markets. Design/methodology/approach – This study employs panel data comprising 1,643 firm-year observations from Malaysia, Indonesia, Singapore and Thailand (2012–2022) and applies the fixed effects regressions. Earnings management is estimated through both accrual-based and real earnings management measures. Findings – The main results indicate that gender-diverse boards mitigate earnings management, particularly in Malaysia and Indonesia, where stronger ESG engagement amplifies this effect. In contrast, weak or symbolic ESG practices, as observed in Thailand, can diminish these benefits. Practical implications – Regulators and firms should move beyond symbolic gender quotas by fostering genuine inclusion and ESG integration to strengthen governance credibility and transparency. Originality/value – This study provides novel cross-country evidence linking BGD, ESG and earnings management, extending governance theory within the Southeast Asian context.