How Does Earnings Manipulation Influence the Firm Performance? The Moderating Effect of the Board Gender Diversity

The study’s purpose is to examine the influence of real earnings management (REM) on firm performance (FP). Further, it investigates the moderating impact of board gender diversity (BDIV), which is represented by the percentage of females on the board in this relationship. The study employed a quantitative approach in examining 87 non-financial firms in Egypt over a period spanning from 2014 to 2021. The findings concluded a positive influence of REM on FP. Additionally, this relationship was moderated by BDIV, where female existence on the board weakened the positive influence of REM on FP. While male existence on the board strengthened the positive impact of REM on FP. The study has several implications for the theoretical explanation of the relationship between REM, FP, and BDIV in the Egyptian context. The study has practical implications for regulators, boards, firms, and stakeholders.