Journal ArticleDOI
Managerial Ability and Earnings Quality
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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
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Internal governance and real earnings management
TL;DR: In this paper, the authors examine whether internal governance affects the extent of real earnings management in U.S. corporations and find that the effect of internal governance is stronger for firms with more complex operations where key subordinate executives' contribution is higher.
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Masculinity, Testosterone, and Financial Misreporting
TL;DR: This paper examined the relation between a measure of male CEOs' facial masculinity and financial misreporting and found that a CEO's facial masculinity predicts his firm's likelihood of being subject to an SEC enforcement action.
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The Relation between Managerial Ability and Audit Fees and Going Concern Opinions
TL;DR: This paper examined the relation between firm-level attributes and auditors' decisions and found that there is little empirical evidence on whether managerial attributes are informative or informative in terms of auditing decisions.
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[In]visible [in]tangibles: Visual portraits of the business élite
TL;DR: In this paper, the authors construct a framework from art theory to interpret portraits of the business elite and their associated intangibles, and identify four sets of rhetorical codes in portraiture: physical, dress, spatial and interpersonal.
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The influence of individual executives on corporate financial reporting: A review and outlook from the perspective of upper echelons theory
TL;DR: In this article, a review of 60 studies on the influence of individual executives on corporate financial reporting is presented, showing that research consistently finds that top management executives exert significant influence on financial reporting decisions, particularly on disclosure quality.
References
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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.