CEO Profile and Earnings Quality
Article
Nguyen, T. T., Duong, C. and Narendran, S. 2021. CEO Profile and Earnings Quality. Review of Quantitative Finance and Accounting. 56, pp. 987-1025. https://doi.org/10.1007/s11156-020-00916-7
Authors | Nguyen, T. T., Duong, C. and Narendran, S. |
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Abstract | This paper introduces the PSCORE, which aggregates nine personal characteristics of chief executive officers (CEOs), to signal the quality of earnings. The PSCORE is a composite score based on publicly available data on CEOs. The study reports strong positive relationships between the PSCORE and two different proxies for earnings quality, (i) discretionary accruals and (ii) financial statement errors, measured by deviations of the first digits of figures reported in financial statements from those expected by Benford’s Law. Further analyses indicate that the relationships between the PSCORE and the proxies for earnings quality become more pronounced when CEOs have high equity-based compensation incentives. The findings have some implications for practitioners. |
Journal | Review of Quantitative Finance and Accounting |
Journal citation | 56, pp. 987-1025 |
ISSN | 0924-865X |
Year | 2021 |
Publisher | Springer |
Accepted author manuscript | License File Access Level Anyone |
Digital Object Identifier (DOI) | https://doi.org/10.1007/s11156-020-00916-7 |
Publication dates | |
Online | 11 Aug 2020 |
Apr 2021 | |
Publication process dates | |
Accepted | 17 Jul 2020 |
Deposited | 22 Jul 2020 |
Copyright holder | © 2020 Springer. |
Copyright information | This is a post-peer-review, pre-copyedit version of an article published in Review of Quantitative Finance and Accounting. The final authenticated version is available online at: https://doi.org/10.1007/s11156-020-00916-7. |
https://repository.uel.ac.uk/item/883yw
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Accepted author manuscript
CEO profile_full_final-1.pdf | ||
License: Springer Nature Terms of Use for accepted manuscripts of subscription articles, books and chapters | ||
File access level: Anyone |
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