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
Managerial ability and accounting conservatism
TL;DR: This article examined the relationship between managerial ability and accounting conservatism for Australian firms for the period 2004 to 2013 and found that managerial ability is positively associated with accounting conservatism, which supports the notion that high ability managers apply conservatism in accounting because it benefits the firm and stakeholders.
Journal ArticleDOI
The effect of managerial ability on corporate social responsibility and firm value in the energy industry
TL;DR: The authors investigated the role of managerial ability in the relationship between corporate social responsibility (CSR) and firm performance in the energy industry and found that managers with superior ability can still efficiently implement CSR activities to foster firm value during the financial crisis.
Journal ArticleDOI
Who Manages the Firm Matters: The Incremental Effect of Individual Managers on Accounting Quality
TL;DR: In this paper, the authors investigate whether individual managers have an incremental effect on firms' accounting quality after controlling for known determinants of AQ, time fixed effects, and firm fixed ef...
Journal ArticleDOI
Top Management Team Characteristics and Accrual-Based Earnings Management
TL;DR: In this paper, the authors examined how top management team knowledge and average tenure affect accrual-based earnings management by investigating 4791 Taiwanese listed companies from 2006 to 2010.
Journal ArticleDOI
The effect of CEO tenure and specialization on timely audit reports of Iranian listed companies
TL;DR: In this article, the authors examined whether the characteristics of a CEO, that is, tenure and financial expertise, could affect the timeliness of an audit report, and found that there is only a negative and significant relationship between CEO financial expertise and natural logarithm of audit report lag.
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.