Effect of Manager's Gender on Conditional Conservatism

One of the issues in the area of managerial ​​decision-making and corporate governance is the participation rate of women has been dominated by male bias. Gender inequalities, especially in the field of management has resulted in lack of appropriate use of women potentials. Men and women have different leadership styles, for instance differences in ethical sensitivity such as different conservatismin in financial reporting. This study examines the relationship between effect of gender on senior managers (managers in board of directors and CEOs) and conditional conservatism. Data was gathered using information in the financial statements of 136 companies listed in Tehran Stock Exchange in the period 1385 to 1392. To test the hypothesis, multiple regressions analysis using panel data is used. The results show that firms with women on board of directors or as CEO adopt more conservative accounting policies than firms with men senior managers, showing women recognize bad news in the income faster.