IDEAS home Printed from https://ideas.repec.org/a/taf/acctbr/v52y2022i2p115-149.html
   My bibliography  Save this article

CFO social ties to non-CEO senior managers and financial restatements

Author

Listed:
  • Yu Flora Kuang
  • Xiaotao Kelvin Liu
  • Srikanth Paruchuri
  • Bo Qin

Abstract

In this study, we examine how a CFO’s social ties with non-CEO senior managers in the same firm affect the likelihood of financial restatements. We categorise social ties as either professional or personal, and find that the two types of ties have distinct effects. Our findings show that CFOs’ professional ties with senior managers are associated with a lower likelihood of financial restatements. Interestingly, the effects of CFO personal ties are related to a firm’s operational performance, in that such ties are associated with a higher (lower) likelihood of financial restatements when operational performance is poor (good). Overall, our findings are consistent with the notion that CFO social ties with senior managers may give rise to both information sharing and arm-in-arm behaviour.

Suggested Citation

  • Yu Flora Kuang & Xiaotao Kelvin Liu & Srikanth Paruchuri & Bo Qin, 2022. "CFO social ties to non-CEO senior managers and financial restatements," Accounting and Business Research, Taylor & Francis Journals, vol. 52(2), pages 115-149, February.
    • Handle: RePEc:taf:acctbr:v:52:y:2022:i:2:p:115-149
    DOI: 10.1080/00014788.2020.1793719
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00014788.2020.1793719
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00014788.2020.1793719?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Raden Roro Widya Ningtyas Soeprajitno & Sri Ningsih & Iman Harymawan & Bablu Kumar Dhar & Suham Cahyono, 2023. "The School-ties Between Top Management Executive and Audit Partner: Exploring From Earnings Management in Indonesia," SAGE Open, , vol. 13(4), pages 21582440231, December.

    More about this item

    Statistics

    Access and download statistics

    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:taf:acctbr:v:52:y:2022:i:2:p:115-149. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RABR20 .

    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.