CEO Age and Financial Reporting Quality

Huang, Hua‐Wei; Rose–Green, Ena; Lee, Chih-Chen

doi:10.2308/acch-50268

Cited by 236 publications

(242 citation statements)

References 52 publications

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“…Sterling (2014) argues that older CEOs are risk averse compared with younger CEOs. Huang, Ena, and Lee (2012) document that older CEOs are associated with higher earnings quality, suggesting that older CEOs lead to higher disclosure quality. Older CEOs may thus disclose more shareholder specific information to avert risks associated with shareholder activism.…”

Section: Theoretical Frameworkmentioning

confidence: 92%

The simultaneous disclosure of shareholder and stakeholder corporate governance practices and their antecedents

Gyapong

Afrifa

2018

Int. J Fin Econ

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In making corporate governance (CG)‐related disclosure, firms may solely focus on shareholders or may broaden their scope of disclosure to serve other stakeholders as well. This study examines whether there are differences in the disclosure of shareholder and stakeholder CG practices. Based on a hand‐collected dataset of 1,110 firm years in South Africa and a disclosure index using 72 CG provisions from the King III report of CG, we find that the disclosure of stakeholder CG practices is higher than that of shareholder CG practices. Our evidence suggests that foreign ownership, institutional ownership, racial diversity, and gender diversity increase total voluntary disclosure. In contrast, chief executive officer (CEO) age decreases total voluntary disclosure. Also, although foreign ownership, institutional ownership, gender diversity, and racial diversity increase both shareholder and stakeholder CG disclosures, CEO age has a negative relationship with both shareholder and stakeholder CG disclosures. Further, board size reduces shareholder disclosure but not stakeholder disclosure. Our results further indicate that, ceteris paribus, the extent of shareholder CG disclosure relative to stakeholder CG disclosure is (a) lower with board size, gender diversity, and racial diversity and (b) higher with the level of institutional ownership. Our findings are robust across a raft of econometric techniques.

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Section: Theoretical Frameworkmentioning

confidence: 92%

The simultaneous disclosure of shareholder and stakeholder corporate governance practices and their antecedents

Gyapong

Afrifa

2018

Int. J Fin Econ

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“…A major limitation of the few existing studies (Abernathy et al 2014;Alfonso et al 2015;Fan et al 2010;Haw et al 2011;Roberts 2016, 2017) is that they have often treated all CEOs engaged in classification shifting as the same, irrespective of their background, specifically their gender origins. Extant research has shown that CEOs' reputation, financial expertise, tenure, and age have an impact on their motivation and ability to engage in earnings management (i.e., Ali and Zhang 2015;Francis et al 2008;Huang et al 2012;Jiang et al 2013). However, since the appointment of women in top executive positions is relatively low, we focus on CEOs gender.…”

Section: Introductionmentioning

confidence: 99%

Female CEOs and Core Earnings Quality: New Evidence on the Ethics Versus Risk-Aversion Puzzle

et al. 2018

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The question of whether females tend to act more ethically or risk-averse compared to males is an interesting ethical puzzle. Using a large sample of US firms over the 1992-2014 period, we investigate the effect that the gender of a chief executive officer (CEO) has on earnings management using classification shifting. We find that the pre-Sarbanes-Oxley (SOX) Act period was characterized by high levels of classification shifting by both female and male CEOs, but the magnitude of such practices is, surprisingly, significantly higher in firms with female CEOs than in those with male CEOs. By contrast, our results suggest that following the passage of the punitive SOX Act, classification shifting by female CEOs declined significantly, whilst it remained pervasive in firms with male CEOs. This suggests that the observable differences in financial reporting behavior between male and female CEOs seem to be because female CEOs are more risk-averse, but not necessarily more ethically sensitive than their male counterparts are. The central tenets of our findings remain unchanged after several additional checks, including controlling for alternative earnings management techniques, corporate governance mechanisms, CEO and chief financial officer characteristics and propensity score-matching.

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“…Huang, Rose‐Green, and Lee () argue that older CEOs are less likely to engage in aggressive EM. In addition, they demonstrate that older CEOs use more conservative decisions.…”

Section: Literature Review and Theoretical Frameworkmentioning

confidence: 99%

CEO characteristics, accounting opacity and stock price synchronicity: Empirical evidence from German listed firms

Neifar

Ajili

2019

J Corp Accounting Finance

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We examine the influence of accounting opacity (earnings management [EM] and tax aggressiveness [TA]) and CEO characteristics (CEO age and tenure) on stock price synchronicity (SPS) of German companies and we test if CEO age and CEO tenure moderate the relation between EM, TA, and SPS. Using the GLS regression, we find that TA and EM have a significant positive effect on SPS. CEO age negatively moderates the relation between TA and SPS. CEO tenure affects positively SPS, but did not moderate neither the relation between EM and SPS nor the relation between TA and SPS. We use several robustness tests that confirm our main analysis.

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CEO Age and Financial Reporting Quality

Cited by 236 publications

References 52 publications

The simultaneous disclosure of shareholder and stakeholder corporate governance practices and their antecedents

The simultaneous disclosure of shareholder and stakeholder corporate governance practices and their antecedents

Female CEOs and Core Earnings Quality: New Evidence on the Ethics Versus Risk-Aversion Puzzle

CEO characteristics, accounting opacity and stock price synchronicity: Empirical evidence from German listed firms

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