CEO Profile and Earnings Quality

Article


Nguyen, T. T., Duong, C. and Narendran, S. 2020. CEO Profile and Earnings Quality. Review of Quantitative Finance and Accounting. https://doi.org/10.1007/s11156-020-00916-7
AuthorsNguyen, T. T., Duong, C. and Narendran, S.
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.

JournalReview of Quantitative Finance and Accounting
ISSN0924-865X
Year2020
PublisherSpringer
Accepted author manuscript
License
File Access Level
Anyone
Digital Object Identifier (DOI)https://doi.org/10.1007/s11156-020-00916-7
Web address (URL)https://doi.org/10.1007/s11156-020-00916-7
Publication dates
Online11 Aug 2020
Publication process dates
Accepted17 Jul 2020
Deposited22 Jul 2020
Copyright holder© 2020 Springer.
Copyright informationThis 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.
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https://repository.uel.ac.uk/item/883yw

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