How Does Financial Reporting Quality Contribute to Sustainable Leadership: A Perspective from Gender View

Yunshi Lin; Jingjing  Zheng

doi:10.6981/FEM.202502_6(2).0013

Authors

Yunshi Lin
Jingjing Zheng

DOI:

https://doi.org/10.6981/FEM.202502_6(2).0013

Keywords:

Financial Reporting Quality; Female Board; Sustainable Leadership; Fixed Effect; Random Effect.

Abstract

This study investigates the impact of financial reporting quality (FRQ) on sustainable leadership and examines the moderating role of female board representation. Using panel data from publicly 9,116 listed firms over the period 2009–2023, the results reveal that higher FRQ significantly enhances sustainable leadership practices by improving transparency, reducing information asymmetry, and fostering stakeholder trust. Additionally, the findings demonstrate that female board representation positively moderates the relationship between FRQ and sustainable leadership. Female directors, known for advocating socially responsible practices and enhancing board accountability, amplify the effect of FRQ on sustainability outcomes. This study underscores the importance of integrating high-quality financial reporting and gender diversity in governance structures to drive sustainable leadership. The research contributes to the literature by highlighting the synergistic effects of FRQ and gender diversity and providing practical insights for organizations aiming to achieve long-term sustainability goals. These findings offer actionable recommendations for policymakers and corporate leaders to enhance sustainability initiatives through improved governance and financial transparency.

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