IDEAS home Printed from https://ideas.repec.org/a/gam/jijfss/v11y2023i1p52-d1104550.html
   My bibliography  Save this article

Do CEO Attributes Spur Conservatism?

Author

Listed:
  • Rawan Atwa

    (Faculty of Business, Accounting Department, Yarmouk University, P.O. Box 566, Irbid 21163, Jordan)

  • Safaa Alsmadi

    (Faculty of Business, Accounting Department, Yarmouk University, P.O. Box 566, Irbid 21163, Jordan)

  • Buthiena Kharabsheh

    (Faculty of Business, Finance Department, Yarmouk University, P.O. Box 566, Irbid 21163, Jordan)

  • Ruwaidah Haddad

    (Faculty of Business, Accounting Department, Yarmouk University, P.O. Box 566, Irbid 21163, Jordan)

Abstract

This study examines the relationship between chief executive officers’ (CEOs’) characteristics (e.g., tenure, experience, education, age and compensation) and accounting conservatism for a sample of 672 yearly observations from both Jordanian industrial and service companies listed on the Amman Stock Exchange (ASE) during the period 2014–2021. Using feasible generalised least squares, the results show that CEOs with more experience and skills are positively and significantly related to accounting conservatism. Furthermore, consistent with upper-echelon-theory arguments, the findings reveal that CEO tenure is significantly and positively associated with the level of accounting conservatism. The results indicate that CEOs’ education, age and compensation are positively but insignificantly related to accounting conservatism. Overall, this study contributes to the literature by providing evidence of the importance of recognising the effects of CEOs’ characteristics on influencing accounting conservatism in Jordanian industrial and service companies.

Suggested Citation

  • Rawan Atwa & Safaa Alsmadi & Buthiena Kharabsheh & Ruwaidah Haddad, 2023. "Do CEO Attributes Spur Conservatism?," IJFS, MDPI, vol. 11(1), pages 1-15, March.
    • Handle: RePEc:gam:jijfss:v:11:y:2023:i:1:p:52-:d:1104550
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7072/11/1/52/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7072/11/1/52/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mohammad Abedalrahman Alhmood & Hasnah Shaari & Redhwan Al-dhamari, 2020. "CEO Characteristics and Real Earnings Management in Jordan," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 255-266, July.
    2. Huang, Shuangfa & Battisti, Martina & Pickernell, David, 2021. "CEO regulatory focus as the microfoundation of organizational ambidexterity: A configurational approach," Journal of Business Research, Elsevier, vol. 125(C), pages 26-38.
    3. Bill Francis & Iftekhar Hasan & Jong Chool Park & Qiang Wu, 2015. "Gender Differences in Financial Reporting Decision Making: Evidence from Accounting Conservatism," Contemporary Accounting Research, John Wiley & Sons, vol. 32(3), pages 1285-1318, September.
    4. Lewellen, Wilbur G & Huntsman, Blaine, 1970. "Managerial Pay and Corporate Performance," American Economic Review, American Economic Association, vol. 60(4), pages 710-720, September.
    5. Bok Baik & David B. Farber & Sam (Sunghan) Lee, 2011. "CEO Ability and Management Earnings Forecasts," Contemporary Accounting Research, John Wiley & Sons, vol. 28(5), pages 1645-1668, December.
    6. Lijun Ma & Min Zhang & Jingyu Gao & Tingting Ye, 2020. "The Effect of Religion on Accounting Conservatism," European Accounting Review, Taylor & Francis Journals, vol. 29(2), pages 383-407, March.
    7. Li, Xiping & Goodell, John W. & Liao, Jing & Yao, Shouyu & Liu, Xutang, 2022. "Does executive gender diversity supply accounting conservatism in traditional societies? Evidence from CEO-CFO combinations in China," Finance Research Letters, Elsevier, vol. 48(C).
    8. Haider, Imran & Singh, Harjinder & Sultana, Nigar, 2021. "Managerial ability and accounting conservatism," Journal of Contemporary Accounting and Economics, Elsevier, vol. 17(1).
    9. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Haider, Imran & Singh, Harjinder & Sultana, Nigar, 2021. "Managerial ability and accounting conservatism," Journal of Contemporary Accounting and Economics, Elsevier, vol. 17(1).
    2. Li, Yiwei & Zeng, Yeqin, 2019. "The impact of top executive gender on asset prices: Evidence from stock price crash risk," Journal of Corporate Finance, Elsevier, vol. 58(C), pages 528-550.
    3. Claude Francoeur & Yuntian Li & Zvi Singer & Jing Zhang, 2023. "Earnings forecasts of female CEOs: quality and consequences," Review of Accounting Studies, Springer, vol. 28(3), pages 1721-1764, September.
    4. Lu Qiao & Emmanuel Adegbite & Tam Huy Nguyen, 2024. "CFO overconfidence and conditional accounting conservatism," Review of Quantitative Finance and Accounting, Springer, vol. 62(1), pages 1-37, January.
    5. Khoo, Joye & (Wai Kong) Cheung, Adrian, 2022. "Managerial ability and debt maturity," Journal of Contemporary Accounting and Economics, Elsevier, vol. 18(1).
    6. Rami Salem & Ernest Ezeani & Xi Song, 2023. "The relationship between religiosity and voluntary disclosure quality: a cross-country evidence from the banking sector," Review of Quantitative Finance and Accounting, Springer, vol. 60(3), pages 983-1023, April.
    7. Ben Abdesslem, Rim & Chkir, Imed & Dabbou, Halim, 2022. "Is managerial ability a moderator? The effect of credit risk and liquidity risk on the likelihood of bank default," International Review of Financial Analysis, Elsevier, vol. 80(C).
    8. Plöckinger, Martin & Aschauer, Ewald & Hiebl, Martin R.W. & Rohatschek, Roman, 2016. "The influence of individual executives on corporate financial reporting: A review and outlook from the perspective of upper echelons theory," Journal of Accounting Literature, Elsevier, vol. 37(C), pages 55-75.
    9. Herwartz, Helmut & Reimers, Hans-Eggert, 2006. "Modelling the Fisher hypothesis: World wide evidence," Economics Working Papers 2006-04, Christian-Albrechts-University of Kiel, Department of Economics.
    10. Bilal Mehmood & Syed Hassan Raza & Mahwish Rana & Huma Sohaib & Muhammad Azhar Khan, 2014. "Triangular Relationship between Energy Consumption, Price Index and National Income in Asian Countries: A Pooled Mean Group Approach in Presence of Structural Breaks," International Journal of Energy Economics and Policy, Econjournals, vol. 4(4), pages 610-620.
    11. Jean C. Kouam & Simplice Asongu, 2022. "The non-linear effects of fixed broadband on economic growth in Africa," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 50(5), pages 881-895, August.
    12. Ranjan Aneja & Umer J. Banday & Tanzeem Hasnat & Mustafa Koçoglu, 2017. "Renewable and Non-renewable Energy Consumption and Economic Growth: Empirical Evidence from Panel Error Correction Model," Jindal Journal of Business Research, , vol. 6(1), pages 76-85, June.
    13. Bosker, Maarten & Brakman, Steven & Garretsen, Harry & Schramm, Marc, 2008. "A century of shocks: The evolution of the German city size distribution 1925-1999," Regional Science and Urban Economics, Elsevier, vol. 38(4), pages 330-347, July.
    14. Eicher, Theo S. & Schreiber, Till, 2010. "Structural policies and growth: Time series evidence from a natural experiment," Journal of Development Economics, Elsevier, vol. 91(1), pages 169-179, January.
    15. Khémiri, Wafa & Noubbigh, Hédi, 2020. "Size-threshold effect in debt-firm performance nexus in the sub-Saharan region: A Panel Smooth Transition Regression approach," The Quarterly Review of Economics and Finance, Elsevier, vol. 76(C), pages 335-344.
    16. Carrión-Flores, Carmen E. & Innes, Robert, 2010. "Environmental innovation and environmental performance," Journal of Environmental Economics and Management, Elsevier, vol. 59(1), pages 27-42, January.
    17. Neil A. Wilmot & Ariuna Taivan, 2021. "Examining the Impact of Financial Development on Energy Production in Emerging Economies," JRFM, MDPI, vol. 14(2), pages 1-17, February.
    18. Raffaello Bronzini & Paolo Piselli, 2006. "Determinants of long-run regional productivity: the role of R&D, human capital and public infrastructure," Temi di discussione (Economic working papers) 597, Bank of Italy, Economic Research and International Relations Area.
    19. Menzie Chinn & Louis Johnston, 1996. "Real Exchange Rate Levels, Productivity and Demand Shocks: Evidence from a Panel of 14 Countries," NBER Working Papers 5709, National Bureau of Economic Research, Inc.
    20. Balázs Égert, 2018. "Regulation, Institutions and Aggregate Investment: New Evidence from OECD Countries," Open Economies Review, Springer, vol. 29(2), pages 415-449, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jijfss:v:11:y:2023:i:1:p:52-:d:1104550. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.