“Keep silent and make money”: Institutional patterns of earnings management in China

Li, Shaomin; Selover, David D.; Stein, Michael T.

doi:10.1016/j.asieco.2011.06.003

Cited by 66 publications

(33 citation statements)

References 28 publications

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“…Li et al (2011) found that younger CEOs are likely to make more prolific investment decisions, since they need to signal their capability to the stakeholders, while Ge et al (2011) provided evidence that older CEOs are more likely to use conservative accounting choices. Moreover, Bamber et al (2010) reported that managers born before World War II are more likely to develop conservative disclosure styles than managers born afterwards.…”

Section: Ceo Agementioning

confidence: 99%

The effect of CEOs’ characteristics on forward-looking information

Alqatamin

Aribi

Arun

2017

JAAR

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Manuscript Type -EmpiricalPurpose -This paper aims to examine the effect of CEOs' characteristics on the level of FLI disclosure.Design/methodology/approach -The study uses a disclosure index to measure the level of FLI and employs random-effect and panel data regressions to examine the relationship between CEOs' characteristics and the level of FLI disclosure. The sample consists of 201 non-financial companies listed on the Amman Stock Exchange (ASE) for the period 2008-2013. Findings -The results show that the CEO age has a significant negative relationship with the level of FLI, whereas gender and overconfidence have a significant positive association with it.Practical implications -The results could be beneficial for a number of users of financial information, such as regulators, investors, auditors and lenders to make better decisions.Originality/value -The current study offers evidence of the effect of CEO characteristics on the level of FLI disclosure statements, particularly through narrative disclosures.

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Section: Ceo Agementioning

confidence: 99%

The effect of CEOs’ characteristics on forward-looking information

Alqatamin

Aribi

Arun

2017

JAAR

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“…Serfling (2012) also argues that CEOs' age has a significant impact on corporate financial decisions because younger CEOs do not have a previous record related to accomplishments. Similarly, Prendergast and Stole (1996) and Li et al (2011) reported that younger CEOs are likely to make more investment decisions than older ones because they want to demonstrate their capability to stakeholders. Miller and Shamsie (2001), however, find that older CEOs tend to take more decision investments than younger CEOs.…”

Section: Theoretical Framework and The Development Of A Hypothesismentioning

confidence: 99%

“…Byrnes et al, 1999), the CEO's age and investment decisions (e.g. Li et al, 2011;Serfling, 2012), the CEO's age and voluntary financial disclosure choices (Bamber et al, 2010), the CEO's overconfidence and corporate acquisitions (e.g. Brown and Sarma, 2007), the CEO's overconfidence and capital structure decisions (Tomak, 2013), the CEO's overconfidence and earnings forecast (Schrand and Zechman, 2012), and the CEO's overconfidence and voluntary disclosure (e.g.…”

Section: Theoretical Framework and The Development Of A Hypothesismentioning

confidence: 99%

The effect of the CEO’s characteristics on EM: evidence from Jordan

Alqatamin

Aribi

Arun

2017

IJAIM

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Purpose This study aims to examine the effect of CEO’s personal characteristics on earnings management (EM) practices. Design/methodology/approach The authors use panel data for 201 non-financial companies listed on the Amman Stock Exchange (ASE) for the period 2008-2013. The authors use random effect models to test the hypothesis of this study and extent the analysis to family versus non-family. Findings The study finds a positive relation between CEO’s overconfidence and EM practices in Jordan. Moreover, the findings reveal that managers in family companies are more likely to engage in EM practices than non-family companies. The findings shed more light on the intricate relationship between CEO’s characteristics, the decision-making process and financial reporting. Practical implications Results of this study could be beneficial for a number of users of financial information such as investors, auditors, regulators, lenders, as well other players in the capital market to make right decisions. Originality/value A literature review finds that much less studies have investigated the relationship between EM practices and personal CEO characteristics (gender and overconfidence) in developing countries such as Jordan. Furthermore, no study yet has examined the influence of CEO age on EM practices. The authors extend previous literature by providing empirical evidence about effect of some personal CEO’s characteristics on EM practices.

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“…Li et al . () suggest local governments interact more closely and frequently with SOEs because local governments rely on SOEs for their revenues. Chen et al .…”

Section: Background Informationmentioning

confidence: 99%

“…The central government directly controls some of these firms, while others are controlled by local governments or other SOEs. The different levels of government potentially have different motives to exert their control on IPO firms' earnings management (Li et al ., ). Secondly, companies with close political ties to the government have preferential access to bank debt (Francis et al ., ), which will mitigate financial constraints, thereby decreasing issuers' incentives to manipulate earnings.…”

Section: Introductionmentioning

confidence: 97%

Earnings management of initial public offering firms: evidence from regulation changes in China

Liu

Uchida

Gao

2012

Accounting & Finance

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Discretionary current accruals of Chinese initial public offering (IPO) firms decreased after the abolition of fixed-price offering systems that directly linked offering price to reported earnings. Results suggest IPO firms that decrease managerial ownership manage earnings upward during the fixedprice offering period, but this relationship disappeared after the introduction of a book-building system. We also find that bank debt is negatively related to discretionary current accruals during the fixed-price offering period, but no relation exists for the book-building period. Leverage has a significant positive relationship with earnings management. However, this finding is potentially attributable to nonoffering price objectives or endogeneity biases.

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“Keep silent and make money”: Institutional patterns of earnings management in China

Cited by 66 publications

References 28 publications

The effect of CEOs’ characteristics on forward-looking information

The effect of CEOs’ characteristics on forward-looking information

The effect of the CEO’s characteristics on EM: evidence from Jordan

Earnings management of initial public offering firms: evidence from regulation changes in China

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