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CFO's Famine Experience and Earnings Management: The Moderating Effect of the CEO Power

Author

Listed:
  • Radwan Alkebsee
  • Abdullah Muhammad Dhrubo
  • Adeeb Alhebri
  • Redhwan Aldamari
  • Ebrahim Mohammed Al‐Matari

Abstract

This study examines the impact of CFOs' famine experience on earnings management practices in China. Using data from Chinese listed firms over the period 2010–2021, we document a negative association between CFOs' famine experiences and earnings management practices (accruals and real activities). These findings are in line with the imprinting theory assumption that early life experiences imprint and shape individuals' personalities and behaviours. We also find that CFOs with such formative experience are likely to enhance financial reporting quality by reducing earnings management in firms with less powerful CEOs, while it diminishes in firms with CEOs who have strong control over the firm. The results remain consistent and robust after addressing endogeneity concerns. This study contributes to the existing literature in this regard.

Suggested Citation

  • Radwan Alkebsee & Abdullah Muhammad Dhrubo & Adeeb Alhebri & Redhwan Aldamari & Ebrahim Mohammed Al‐Matari, 2026. "CFO's Famine Experience and Earnings Management: The Moderating Effect of the CEO Power," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 31(2), pages 2729-2753, April.
    • Handle: RePEc:wly:ijfiec:v:31:y:2026:i:2:p:2729-2753
    DOI: 10.1002/ijfe.70069
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    References listed on IDEAS

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