Journal ArticleDOI
Managerial Ability and Earnings Quality
Reads0
Chats0
TLDR
This article examined the relation between managerial ability and earnings quality and found that more able managers are associated with fewer subsequent restatements, higher earnings and accruals persistence, lower errors in the bad debt provision, and higher quality accrual estimations.Abstract:
: We examine the relation between managerial ability and earnings quality. We find that earnings quality is positively associated with managerial ability. Specifically, more able managers are associated with fewer subsequent restatements, higher earnings and accruals persistence, lower errors in the bad debt provision, and higher quality accrual estimations. The results are consistent with the premise that managers can and do impact the quality of the judgments and estimates used to form earnings. Data Availability: Data are publicly available from the sources identified in the text.read more
Citations
More filters
Journal ArticleDOI
Relative peer quality and firm performance
TL;DR: In this paper, the authors examined the performance impact of the relative quality of a chief executive officer's compensation peers and bonus peers on the performance of a CEO's relative performance-based bonus and found that firms with higher RPQ earn higher stock returns and experience higher profitability growth.
Journal ArticleDOI
Accounting comparability, financial reporting quality, and the pricing of accruals
Anthony Chen,James Jianxin Gong +1 more
TL;DR: In this paper, the authors examined the impact of accounting comparability on financial reporting quality and the extent to which financial statement users understand the implications of firms' accruals using restatements.
Journal ArticleDOI
Conditional Conservatism and Labor Investment Efficiency
Joohyung Ha,Mingming Feng +1 more
TL;DR: This article investigated the impact of conservatism on an important investment decision that has been overlooked, namely, investment in labor and found that conservatism is negatively associated with labor investment inefficiency; more specifically, conservatism reduces inefficient investment practices on the labor market.
Journal ArticleDOI
Managerial overconfidence, ability, firm-governance and audit fees
TL;DR: The authors examined the relationship between managerial overconfidence and audit fees in the post-Sarbanes-Oxley (post-SOX) environment and found that overconfident managers purchase lower quality audits and pay lower audit fees.
Journal ArticleDOI
Overconfidence, CEO Awards, and Corporate Tax Aggressiveness
TL;DR: The authors used a dataset of media awards as an exogenous shock to overconfidence to test whether award-winning CEOs adopt more aggressive corporate tax policies, and they found strong evidence that firms with an awardwinning CEO exhibit significantly greater tax aggressiveness following the award.
References
More filters
Journal ArticleDOI
Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches
TL;DR: In this article, the authors examine the different methods used in the literature and explain when the different approaches yield the same (and correct) standard errors and when they diverge, and give researchers guidance for their use.
Journal ArticleDOI
Industry costs of equity
Eugene F. Fama,Kenneth R. French +1 more
TL;DR: In this paper, the authors show that standard errors of more than 3.0% per year are typical for both the CAPM and the three-factor model of Fama and French (1993), and these large standard errors are the result of uncertainty about true factor risk premiums and imprecise estimates of the loadings of industries on the risk factors.
Journal ArticleDOI
Interaction terms in logit and probit models
Chunrong Ai,Edward C. Norton +1 more
TL;DR: In this article, the authors present the correct way to estimate the magnitude and standard errors of the interaction effect in nonlinear models, which is the same way as in this paper.
Journal ArticleDOI
The Quality of Accruals and Earnings: The Role of Accrual Estimation Errors
TL;DR: In this paper, the authors suggest a new measure of one aspect of the quality of working capital accruals and earnings, i.e., the ability to shift or adjust the recognition of cash flows over time so that t...
Journal ArticleDOI
Audit committee, board of director characteristics, and earnings management
TL;DR: In this paper, the authors examined whether audit committee and board characteristics are related to earnings management by the firm and found a negative relation between audit committee independence and abnormal accruals.