IDEAS home Printed from https://ideas.repec.org/a/taf/oabmxx/v9y2022i1p2024117.html
   My bibliography  Save this article

Chief executive officer characteristics and discretionary accruals in an emerging economy

Author

Listed:
  • Marwan Altarawneh
  • Rohami Shafie
  • Rokiah Ishak
  • Belal Ali Abdulraheem Ghaleb

Abstract

The main aim of the current study is to examine the effect of Chief Executive Officer (CEO) characteristics on earnings management proxied by discretionary accruals. The study used 1,957 firm-year observations listed in Bursa Malaysia for the period from 2012 to 2016. Panel data method is used to examine the established hypotheses. The results show a significant negative association between CEO tenure, network, and gender and discretionary accruals. These results suggest that CEOs with more extended periods serving in the firm, CEOs with several external directorships, and female CEOs are more rigorous in improving their strategic decisions and are less likely to engage in earnings management. Hence, they are associated with high financial reporting quality (FRQ). However, there is no significant relationship between CEO expertise, CEO age and discretionary accruals. The results are robust to an alternative measure of discretionary accruals. Therefore, the current study extends the FRQ and corporate governance literature by investigating the impact of CEO characteristics on earnings quality and, consequently, FRQ. The results are important for policymakers, stockholders, and market participants in identifying the importance of CEO characteristics in producing high FRQ.

Suggested Citation

  • Marwan Altarawneh & Rohami Shafie & Rokiah Ishak & Belal Ali Abdulraheem Ghaleb, 2022. "Chief executive officer characteristics and discretionary accruals in an emerging economy," Cogent Business & Management, Taylor & Francis Journals, vol. 9(1), pages 2024117-202, December.
    • Handle: RePEc:taf:oabmxx:v:9:y:2022:i:1:p:2024117
    DOI: 10.1080/23311975.2021.2024117
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/23311975.2021.2024117
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/23311975.2021.2024117?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. Maria Kovacova & Lenka Hrosova & Pavol Durana & Jakub Horak, 2022. "Earnings management model for Visegrad Group as an immanent part of creative accounting," Oeconomia Copernicana, Institute of Economic Research, vol. 13(4), pages 1143-1176, 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:oabmxx:v:9:y:2022:i:1:p:2024117. 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://cogentoa.tandfonline.com/OABM20 .

    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.