Gounopoulos, Dimitrios and Pham, Hang (2018) Financial Expert CEOs and Earnings Management Around Initial Public Offerings. The International Journal of Accounting, 53 (2). pp. 102-117. DOI https://doi.org/10.1016/j.intacc.2018.04.002
Gounopoulos, Dimitrios and Pham, Hang (2018) Financial Expert CEOs and Earnings Management Around Initial Public Offerings. The International Journal of Accounting, 53 (2). pp. 102-117. DOI https://doi.org/10.1016/j.intacc.2018.04.002
Gounopoulos, Dimitrios and Pham, Hang (2018) Financial Expert CEOs and Earnings Management Around Initial Public Offerings. The International Journal of Accounting, 53 (2). pp. 102-117. DOI https://doi.org/10.1016/j.intacc.2018.04.002
Abstract
This study examines the association between financial expert CEOs and earnings management (EM) around initial public offerings. We identify financial expert CEOs as those having past experience in either banking or investment firms, large auditing firms, or finance-related roles. We find strong evidence that newly listed firms with financial expert CEOs are less likely to engage in either accrual-based or real EM in the offering year than those with non-financial expert CEOs. In particular, our results are robust after controlling for the potential selection issue that occurs due to non-random matching of CEOs to firms. In addition, we employ alternative measures of financial expertise, including past experience in a CFO position, financial experience variety, and professional qualifications. We document that CEOs who used to work as CFOs and those who gained varied financial experience are less likely to manage earnings through both accruals and real activities. Moreover, CEOs who have a professional qualification in finance and/or accounting are also associated with lower accrual-based EM.
Item Type: | Article |
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Uncontrolled Keywords: | IPOs; Financial expertise; CEOs; Earnings management |
Subjects: | H Social Sciences > HG Finance |
Divisions: | Faculty of Social Sciences Faculty of Social Sciences > Essex Business School |
SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
Depositing User: | Unnamed user with email elements@essex.ac.uk |
Date Deposited: | 14 Sep 2018 09:31 |
Last Modified: | 16 May 2024 19:26 |
URI: | http://repository.essex.ac.uk/id/eprint/22199 |
Available files
Filename: SSRN-id3177760.pdf