The effect of CEOs’ characteristics on forward-looking information

Purpose - 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.