CEO Characteristics and Earnings Management: A Study of Manager Tenure, Age, Gender, and Overconfidence
Corporate scandals over the past few decades underline the importance of robust corporate governance mechanisms to monitor and control managerial behaviour. Earnings management, where accounting techniques are used to present a company’s financial position more favourably than it actually is, can af...
Saved in:
| Main Authors: | , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Sciendo
2024-12-01
|
| Series: | Studies in Business and Economics |
| Subjects: | |
| Online Access: | https://doi.org/10.2478/sbe-2024-0059 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1832570317812269056 |
|---|---|
| author | Chen Sitao Tzavara Dionisia Argyropoulou Maria Koufopoulos Dimitrios Argyropoulou Rachel |
| author_facet | Chen Sitao Tzavara Dionisia Argyropoulou Maria Koufopoulos Dimitrios Argyropoulou Rachel |
| author_sort | Chen Sitao |
| collection | DOAJ |
| description | Corporate scandals over the past few decades underline the importance of robust corporate governance mechanisms to monitor and control managerial behaviour. Earnings management, where accounting techniques are used to present a company’s financial position more favourably than it actually is, can affect financial reporting quality and the company’s financial reputation. Our study explores how CEO characteristics, such as tenure, gender, age and overconfidence, influence corporate earnings management. Using earnings and executive characteristics data for A-class companies listed in Shanghai and Shenzhen stock exchanges between 2016 and 2020, the research employs multiple regression analysis to empirically analyse the impact of manager characteristics on corporate earnings management. We find that CEOs with longer tenure, male and high self-confidence are more likely to participate in corporate earnings management. Additionally, firm size and asset-liability ratio are positively related to corporate earnings management behavior. While previous studies mainly use data from US companies, this research contributes to the literature by using data from non-US companies, addressing the call for more empirical studies to understand how top executives’ demographic characteristics impact earnings management in different contexts. |
| format | Article |
| id | doaj-art-aadc752165d64ee0923ae61fcc66ba78 |
| institution | Kabale University |
| issn | 2344-5416 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Studies in Business and Economics |
| spelling | doaj-art-aadc752165d64ee0923ae61fcc66ba782025-02-02T15:49:07ZengSciendoStudies in Business and Economics2344-54162024-12-0119333534710.2478/sbe-2024-0059CEO Characteristics and Earnings Management: A Study of Manager Tenure, Age, Gender, and OverconfidenceChen Sitao0Tzavara Dionisia1Argyropoulou Maria2Koufopoulos Dimitrios3Argyropoulou Rachel41University of Glasgow, UK2Brunel University, UK3Brunel University, UK4CCLS, Queen Mary University, UK5Brunel University, UKCorporate scandals over the past few decades underline the importance of robust corporate governance mechanisms to monitor and control managerial behaviour. Earnings management, where accounting techniques are used to present a company’s financial position more favourably than it actually is, can affect financial reporting quality and the company’s financial reputation. Our study explores how CEO characteristics, such as tenure, gender, age and overconfidence, influence corporate earnings management. Using earnings and executive characteristics data for A-class companies listed in Shanghai and Shenzhen stock exchanges between 2016 and 2020, the research employs multiple regression analysis to empirically analyse the impact of manager characteristics on corporate earnings management. We find that CEOs with longer tenure, male and high self-confidence are more likely to participate in corporate earnings management. Additionally, firm size and asset-liability ratio are positively related to corporate earnings management behavior. While previous studies mainly use data from US companies, this research contributes to the literature by using data from non-US companies, addressing the call for more empirical studies to understand how top executives’ demographic characteristics impact earnings management in different contexts.https://doi.org/10.2478/sbe-2024-0059enterprise earnings managementceo characteristicsmultiple regression analysischina |
| spellingShingle | Chen Sitao Tzavara Dionisia Argyropoulou Maria Koufopoulos Dimitrios Argyropoulou Rachel CEO Characteristics and Earnings Management: A Study of Manager Tenure, Age, Gender, and Overconfidence Studies in Business and Economics enterprise earnings management ceo characteristics multiple regression analysis china |
| title | CEO Characteristics and Earnings Management: A Study of Manager Tenure, Age, Gender, and Overconfidence |
| title_full | CEO Characteristics and Earnings Management: A Study of Manager Tenure, Age, Gender, and Overconfidence |
| title_fullStr | CEO Characteristics and Earnings Management: A Study of Manager Tenure, Age, Gender, and Overconfidence |
| title_full_unstemmed | CEO Characteristics and Earnings Management: A Study of Manager Tenure, Age, Gender, and Overconfidence |
| title_short | CEO Characteristics and Earnings Management: A Study of Manager Tenure, Age, Gender, and Overconfidence |
| title_sort | ceo characteristics and earnings management a study of manager tenure age gender and overconfidence |
| topic | enterprise earnings management ceo characteristics multiple regression analysis china |
| url | https://doi.org/10.2478/sbe-2024-0059 |
| work_keys_str_mv | AT chensitao ceocharacteristicsandearningsmanagementastudyofmanagertenureagegenderandoverconfidence AT tzavaradionisia ceocharacteristicsandearningsmanagementastudyofmanagertenureagegenderandoverconfidence AT argyropouloumaria ceocharacteristicsandearningsmanagementastudyofmanagertenureagegenderandoverconfidence AT koufopoulosdimitrios ceocharacteristicsandearningsmanagementastudyofmanagertenureagegenderandoverconfidence AT argyropoulourachel ceocharacteristicsandearningsmanagementastudyofmanagertenureagegenderandoverconfidence |