Have a personal or library account? Click to login
CEO Characteristics and Earnings Management: A Study of Manager Tenure, Age, Gender, and Overconfidence Cover

CEO Characteristics and Earnings Management: A Study of Manager Tenure, Age, Gender, and Overconfidence

Open Access
|Jan 2025

References

  1. Ali, A., Zhang, W., (2015), CEO tenure and earnings management, Journal of Accounting and Economics, Vol. 59, no. 1, pp.60–79.
  2. Axelson, U., Bond, P., (2009), Investment banking (and other high profile) careers, Stockholm School of Economics, University of Pennsylvania, Working paper, 15 February, available online at https://citeseerx.ist.psu.edu/document?repid=rep1&type=pdf&doi=aa3262297fbbf6b18e1a17a15f3343c2d5bf0e0d
  3. Bamber, L.S., Jiang, J., Wang, I.Y., (2010), What’s my style? The influence of top managers on voluntary corporate financial disclosure, The Accounting Review, Vol. 85, no. 4, pp. 1131-1162.
  4. Bange, M.M., De Bondt, W.F.M., (1998), R&D budgets and corporate earnings targets, Journal of Corporate Finance, Vol. 4, no. 2, pp. 153–184.
  5. Baura, A.L., Devidson, D., Rama, D., Thiruvadi, S., (2010), CFO gender and accruals quality, Accounting Horizons, Vol. 24, no. 1, pp. 25-39.
  6. Beladi, H., Cheng, C., Hu, M., Yuan, Y., (2020), Unemployment governance, labour cost and earnings management: Evidence from China, The World Economy, Vol. 43, no. 10, pp. 2526–2548.
  7. Bouwaman, C.H.S., (2014), Managerial optimism and earnings smoothing, Journal of Banking & Finance, Vol. 41, pp. 283-303.
  8. Callao, S., Jarne, J.I., Wroblewski, D., (2021), A systematic approach to the motivations for earnings management: A literature review, International Journal of Emerging Trends in Social Sciences, Vol. 10, no. 1, pp. 1-20.
  9. Carpenter, M.A., Fredrickson, J.W., (2001), Top management teams, global strategic posture, and the moderating role of uncertainty, Academy of Management Journal, Vol. 44, no. 3, pp. 533-545.
  10. Christensen, T.E., Huffman, A., Lewis-Western, M.F., Scott, R., (2022), Accruals earnings management proxies: Prudent business decisions or earnings manipulation?, Journal of Business Finance & Accounting, Vol. 49, no. 3-4, pp. 536-587.
  11. Cornett, M., Marcus, J., Tehranian, H., (2008), Corporate governance and pay-for performance: The impact of earnings management, Journal of Financial Economics, Vol. 1, no. 1, pp. 357-373.
  12. CSRC, (2020), China Securities Regulatory Commission Annual Report 2020, available online at http://www.csrc.gov.cn/csrc_en/c102063/c1606114/1606114/files/CSRC%20Annual%20Report%202020.pdf
  13. Davidson, W., Xie, B., Xu, W., Ning, Y., (2007), The influence of executive age, career horizon and incentives on pre-turnover earnings management, Journal of Management & Governance, Vol. 1, no. 1, pp. 45-60.
  14. Dechow, P., Sloan, R., (1991), Executive incentives and the horizon problem: An empirical investigation, Journal of Accounting and Economics, Vol. 14, no. 1, pp. 51-89.
  15. Dechow, P., Sloan, R., Sweeney, A., (1995), Detecting earnings management, The Accounting Review, Vol. 70, pp. 193-225.
  16. Demerjian, P., Lewis-Western, M., McVay, S., (2017), How does intentional earnings smoothing vary with managerial ability?, Journal of Accounting, Auditing & Finance, Vol. 35, no. 2, pp. 406-437.
  17. Di Meo, F., (2014), Overinvestment, subsequent earnings management, and CEO tenure, Spanish Journal of Finance and Accounting, Vol. 43, no. 3, pp. 217-240.
  18. Du, X., Lai, S., Pei, H., (2016), Do women top managers always mitigate earnings management? Evidence from China, China Journal of Accounting Studies, Vol. 4, no. 3, pp.308–338.
  19. Dyreng, S., Hanlon, M., Maydew, E., (2010), The effects of executives on corporate tax avoidance, The Accounting Review, Vol. 85, no. 4, pp. 1163-1189.
  20. Einhorn, E., Langberg, N., Versano, T., (2017), Cross-Firm Real Earnings Management, Journal of Accounting Research, Vol. 56, no. 3, pp. 883–911.
  21. Garanina, T., Nikulin, E., Frangulantc, O. (2016), Earnings management and R&D costs capitalization: evidence from Russian and German markets, Investment Management and Financial Innovation, Vol. 13, no. 1, pp. 206-214.
  22. Gavious, L., Segev, E., Yosef, R., (2012), Female directors and earnings management in high-technology firms, Pacific Accounting Review, Vol. 24, no. 1, pp. 4-32.
  23. Ge, W., Matsumoto, D., Zhang, J., (2011), Do CFOs have style? An empirical investigation of the effect of individual CFOs on accounting practices, Contemporary Accounting Research, Vol. 28, no. 4, pp. 1141-1179.
  24. Gull, A.A., Nekhili, M., Negati, H., Chtioui, T., (2018), Beyond gender diversity: How specific attributes of female directors affect earnings management, The British Accounting Review, Vol. 50, no. 3, pp. 255–274.
  25. Hambrick, D.C., Mason, P.A., (1984), Upper Echelons: The organization as a reflection of its top managers, Academy of Management Review, Vol. 9, no. 2, pp. 193–206.
  26. Hambrick, D.C., (2007), Upper Echelons Theory: An Update, Academy of Management Review, Vol. 32, no. 2, pp. 334–343.
  27. Harris, O., Karl, J.B., Lawrence, E., (2019), CEO compensation and earnings management: Does gender really matters?, Journal of Business Research, Vol. 98, pp. 1–14.
  28. Hayward, M.L.A., Hambrick, D.C. (1997) Explaining the premiums paid by large acquisitions: Evidence of CEO hubris, Administrative Science Quarterly, Vol. 42, no. 1, pp. 103-127.
  29. Healy, P.M., (1985), The effect of bonus schemes on accounting decisions, Journal of Accounting and Economics, Vol. 7, no. 1–3, pp. 85–107.
  30. Healy, P.M., (1999), Discussion of earnings-based bonus plans and Earnings Management by Business Unit Managers, Journal of Accounting and Economics, Vol. 26, no. 1–3, pp. 143–147.
  31. Heminway, J.M., (2007), Sex-trust, and corporate boards, Hastings Women’s Law Journal, Vol. 18, pp. 173-193.
  32. He, W., He, Z.-L., Tong, T. W., (2020), Ownership Change and Firm Innovation: The Mediating Role of Interest Alignment, Strategy Science, Vol. 5, no. 1, pp. 17-38.
  33. Hsieh, T.-S., Bedard, J.C., Johnstone, K.M., (2014), CEO Overconfidence and Earnings Management During Shifting Regulatory Regimes, Journal of Business Finance & Accounting, Vol. 41, no. 9-10, pp.1243–1268.
  34. Hu, N. Hao, Q., Liu, L., Yao, L.J., (2015), Managerial tenure and earnings management, International Journal of Accounting and Information Management, Vol. 23, no. 1, pp. 42-59.
  35. Huang, H.E., Rose-Green, A., Lee, C., (2012), CEO age and financial reporting quality, Accounting Horizons, Vol. 26, no. 4, pp. 725-740.
  36. Isidro, H., Goncalves, L., (2011), Earnings management and CEO characteristics in Portuguese firms, Corporate Ownership and Control, Vol. 1, no. 1, pp. 87-95.
  37. Kachelmeier, S.J., (2001), Introduction to a forum of individual differences in accounting behavior, The Accounting Review, Vol. 85, no. 4, pp. 1127-1128.
  38. Kalyta, P., (2009), Accounting discretion, horizon problem, and CEO retirement benefits, The Accounting Review, Vol. 84, no. 5, pp. 1553-1573.
  39. Khaled, A., (2007), Measurement and motivations of earnings management: A critical perspective, Journal of Accounting, Business & Management, Vol. 14, pp. 75-95.
  40. Khligi, S., Zouari, G., (2021), The impact of CEO overconfidence on real earnings management: Evidence from M&A transactions, Accounting and Management Information Systems, Vol. 20, no. 3, pp. 402-424.
  41. Kim, H.A., Jeong, S.W., Kang, T., Lee, D. (2017), Does the presence of female executives curb earnings management? Evidence from Korea, Australian Accounting Review, Vol. 27, no. 4, pp. 494-506.
  42. Kim, B.H., Lisic, L.L., Pevzner, M. (2010), Debt Covenant Slack and Real Earnings Management,
  43. Kertas kerjia yang dipublikasikan melalui SSRN, available online at: http://webdocs.stern.nyu.edu/old_web/emplibrary/DebtCovenantSlackandReal...pdf
  44. Kouaib, A., (2023), CEO overconfidence and subsequent firm performance an indirect effect via earnings manipulations, The Journal of High Technology Management Research, Vol. 34, no. 1, p. 100452.
  45. Krishnan, G. V., Parsons, L.M., (2006), Getting to the Bottom Line: An Exploration of Gender and Earnings Quality, Journal of Business Ethics, Vol. 78, pp. 65-76.
  46. Liu, Y., Wei, Z., Xie, F., (2016), CFO gender and earnings management: Evidence from China, Review of Quantitative Finance and Accounting, Vol. 46, p. 881-905.
  47. Luo, J., Xiang, Y., Huang, Z., (2017), Female directors and real activities manipulation: Evidence from China, China Journal of Accounting Research, Vol. 10, no. 2, 141–166.
  48. Na, K., Hong, J., (2017), CEO gender and earnings management, The Journal of Applied Business Research, Vol. 33, no. 2, pp. 297-308.
  49. Oyer, P., (2008), The making of an investment banker: Stock marker shocks, career choice, and lifetime income, Journal of Finance, Vol. 63, no. 1, pp. 2601-2628.
  50. Peni, E., Vahamaa, S., (2010), Female executives and earnings management, Managerial Finance, Vol. 36, no. 7, pp. 629-645.
  51. Pourciau, S., (1993), Earnings management and non-routine executive changes, Journal of Accounting and Economics, Vol. 16, no. 3, pp. 317-336.
  52. Purba, G.K., Fransisca, C., Joshi, P.L., (2022), Analyzing earnings management preferences from business strategies, Journal of Financial Reporting and Accounting, Vol. 20, no. 5, pp. 979-993.
  53. Qawashem, S.Y., Azzam, M.J., (2020), CEO characteristics and earnings management, Accounting, Vol. 6, pp. 1403-1410.
  54. Qi, B., Lin, J.W., Tian, G., Lewis, H.C.X., (2018), Impact of top management team characteristics on the choice of earnings management strategies: Evidence from China, Accounting Horizons, Vol. 32, no. 1, pp. 143-164.
  55. Rahman, Md. M., Moniruzzaman, M., Sharif, Md. J., (2021), Techniques, motives and controls of earnings management, International Journal of Technology and Business Management, Vol. 11, no. 1, pp. 22-34.
  56. Roychowdhury, S., (2003), Earnings Management through Real Activities Manipulation, SSRN Electronic Journal, Vol. 42, no. 3, pp.335–370.
  57. Schipper, K., (1989), Earnings management, Accounting Horizons, Vol. 3, no. 4, p. 91.
  58. Schrand, C., Zechman, S., (2012), Executive overconfidence and the slippery slope to financial misreporting, Journal of Accounting & Economics, Vol. 53, no. 1/2, pp. 311-329.
  59. Simons, T., Pelled, L.H., Smith, K.A., (1999), Making use of difference: Diversity, debate and decision comprehensiveness in top management teams, Academy of Management Journal, Vol. 42, no. 6, pp. 662-673.
  60. Srinidhi, B., Gul, F.A., Tsui, J., (2011), Female directors and earnings quality, Contemporary Accounting Research, Vol. 28, no. 5, pp. 1610-1644.
  61. Verkek, S., (2012), Are CEO changes related to earnings management?, Erasmus University Rotterdam, Zwijndrecht.
  62. Walker, M., (2013), How far can we trust earnings numbers? What research tells us about earnings management, Accounting and Business Research, Vol. 43, no. 4, 445–481.
  63. Wu, W., Chiang, C., Jiang, J., (2002), Interrelationships between TMT management styles and organizational innovation, Industrial Management & Data Systems, Vol. 102, no. 3, pp. 171-183.
  64. Yu, C.-F., (2014), CEO overconfidence, CEO compensation, and earnings manipulation, Journal of Management Accounting Research, Vol. 26, no. 2, pp. 167-193.
DOI: https://doi.org/10.2478/sbe-2024-0059 | Journal eISSN: 2344-5416 | Journal ISSN: 1842-4120
Language: English
Page range: 335 - 347
Published on: Jan 22, 2025
In partnership with: Paradigm Publishing Services
Publication frequency: 3 issues per year

© 2025 Sitao Chen, Dionisia Tzavara, Maria Argyropoulou, Dimitrios Koufopoulos, Rachel Argyropoulou, published by Lucian Blaga University of Sibiu
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.