Document Type
Article
Publication Date
2026
DOI
10.1002/jcaf.70043
Publication Title
Journal of Corporate Accounting & Finance
Volume
Advance online publication
Pages
1-16
Abstract
We examine whether top management team (TMT) functional diversity affects financial statement comparability. Drawing upon upper echelons theory and the information sharing perspective in diversity research, we argue that TMT functional diversity produces more comparable financial statements due to better information sharing and integration. Using a sample of US firms, we find that financial statement comparability is positively associated with TMT functional diversity. We also find that the positive relationship between TMT functional diversity and comparability is more pronounced in firms with a poor information environment. Our findings remain robust after addressing endogeneity concerns. This study contributes to the existing literature by identifying TMT functional diversity as an important determinant of financial statement comparability.
Rights
© 2026 The Authors.
This is an open access article under the terms of the Creative Commons Attribution 4.0 International (CC BY 4.0) License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.
Data Availability
Article states: "Data is available from public sources identified in the text."
ORCID
0000-0003-0844-3706 (Hasan)
Original Publication Citation
Hasan, M. M., Hsu, A. W. H., Sarkar, S., & Yang, T. H. J. (2026). Does a more functionally diverse top management team make the financial statements more comparable? Journal of Corporate Accounting & Finance. Advance online publication. https://doi.org/10.1002/jcaf.70043
Repository Citation
Hasan, Md Mahmudul; Hsu, Audrey Wen-Hsin; Sarkar, Sayan; and Yang, Tsung-Hsuan Joey, "Does a More Functionally Diverse Top Management Team Make the Financial Statements More Comparable?" (2026). Accounting Faculty Publications. 16.
https://digitalcommons.odu.edu/accounting_pubs/16