Exploring and Explaining the Effects of Financial Literacy and the Complementary Relationship ‎of Female Board Members on Preventing Earning Management ‎(Evidence from companies listed on stock exchange)‎

To achieve balance, equality, and elimination of prejudices, as well as the full development of organizations, women need to be able to participate in the decision making process at various levels of the organization. In recent years, in the employment rate of women in society has increased significantly. The reason is the remarkable competencies in women’s management style. Therefore, a new view to the management of women is emerging in developing countries. The purpose of this study was to investigate the complementary relationship between female board members and financial literacy with preventing earning management in companies listed on stock exchange. 124 companies were selected as the research sample using Systematic Sampling and after applying restrictions, from 2012 to 2018. Hypotheses have been tested and analyzed using combined data regression techniques. The results of the study indicate that having female members in board of directors has a significant effect on earning management. The presence of educated women in the board will reduce profit management. Therefore, companies are encouraged to have financially educated women on their board of directors.