Examining upper echelons managers’ characteristics on financial restatements

Besar, Syarifah Saffa’ Najwa Tuan; Ali, Mazurina Mohd; Ghani, Erlane K

doi:10.14254/2071-8330.2017/10-4/14

Cited by 5 publications

(10 citation statements)

References 28 publications

(49 reference statements)

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“…Studies by Bennouri et al (2018) report that director education is negatively correlated with market performance but positively correlated with accounting performance. Other studies reveal that higher CEO education positively affects financial statements (Besar et al, 2017). Despite the inconclusive findings, this study presumes that a more highly educated board of directors potentially detects financial misstatements.…”

Section: Introductioncontrasting

confidence: 64%

“…The board is essential in making company decisions, especially regarding financial reporting. Nonetheless, the effectiveness of the board of directors in corporate governance depends on the characteristics of the board itself (Besar et al, 2017). Therefore, this study identifies eight BoD characteristics: board tenure, board size, board independence, female board, foreign board member, board level education, board accounting expertise, and dual board position.…”

Section: Introductionmentioning

confidence: 99%

“…H 5 : Foreign director members reduce financial restatements Education is a formal process to improve one's cognitive abilities. Education is interpreted as acquiring knowledge, skills, and technical expertise (Besar et al, 2017). Educated directors are seen as easier to understand, analyze, and provide solutions to complex problems (Jiang et al, 2016).…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Board of Directors and Financial Restatement: Evidence from The Two-Tier System

Rustiarini,

Dewi,

Sunarsih

2023

aaj

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Purpose : This study investigates the role of the characteristics of the Board of Directors (BoD) on financial restatements. The characteristics are reviewed based on board tenure, board size, board independence, female board, foreign board member, board level education, board accounting expertise, and dual board position. Method : The research sample is a manufacturing company on the Indonesia Stock Exchange for 2017-2021. The analytical tool used is logistic regression. Findings : This study found that five board characteristics negatively affect financial restatements: board tenure, board size, board independence, female board, and board accounting expertise. On the other hand, a dual position has a positive effect on financial restatements. Meanwhile, foreign board and board education do not significantly affect financial restatements. Novelty : First, considering BoD as a decision maker in the company, board characteristics influence group dynamics in collaboration and communication to implement corporate governance. Second, studies that analyze the impact of executive boards on financial statements still need to be expanded, especially in Indonesia, which adheres to a two-tier system. Third, previous studies that examine the role of BoD and financial restatements have provided contradictory evidence, and many studies still need to prove the effectiveness of the BoDs’ characteristics on financial restatements. Keywords : Director; Female; Restatement

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Section: Introductioncontrasting

confidence: 64%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Board of Directors and Financial Restatement: Evidence from The Two-Tier System

Rustiarini,

Dewi,

Sunarsih

2023

aaj

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“…the managers’ values and cognitive basis for the managers’ values. Besar et al (2017) agreed and added that three basic principles that underlie UET include cognitive bias and values which are the reflection of the strategic decisions, knowledge and values which conform to particular observable characteristics such as experience or training and the outcomes related to the observable characteristics of the senior managers. These studies highlight that senior managers’ positive self-image impacts their attitude through their values and perceptions.…”

Section: Theory Model and Hypothesesmentioning

confidence: 99%

The role of senior managers’ positive self-image in supporting MIS implementation

Mehrkish

Grant

2021

VJIKMS

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Purpose Researchers have long been interested in how the psychology of senior managers affects their behaviours. This paper aims to present the results of a questionnaire into how positive self-image influences how well senior managers in UK manufacturing organisations support the implementation of management information system (MIS). This study developed two scales, one to measure senior managers’ attitudes and the other to measure support of MIS implementation. It also sought to investigate the impact of senior managers’ positive self-image on their support of MIS implementation in UK manufacturing organisations. Design/methodology/approach The authors tested the hypotheses on a data set of 400 senior managers from UK manufacturing organisations. Two unidimensional scales to measure senior managers’ attitude and support level towards MIS implementation were developed. Exploratory factor analysis (EFA) was used to validate the scales. The study also examined the impact of senior managers’ positive self-image on their attitude and support from the perspective of UK manufacturing organisations by using structural equation modelling. Findings The study found that senior managers’ positive self-image is a significant contributing factor to their attitude. Also, senior managers’ attitude has a strong positive impact on their support in the MIS implementation process. A strong mediating relationship was found to exist between senior managers’ positive self-image and support through their attitude towards MIS implementation. Originality/value Although past literature has examined the importance of senior managers’ attitude and support in successful MIS implementation, there has been no specific scale around management support and attitude towards MIS implementation developed to date. Thus, a contribution of this study is its development of two new scales based on a survey of senior managers of UK manufacturing organisations. The scales can be used to evaluate senior managers’ perception towards MIS implementation and the support they are willing to give whilst implementing MIS. Another contribution of this study is the analysis of positive self-image via item-parcelling which improves model efficiency and provides more stable estimates of the construct.

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“…Previous studies have provided evidence for the firms to possess a top management team that is long-tenured because it is allied with team familiarity and the consistency of the firm"s internal business (Michel & Hambrick, 1992;Smith et al, 1994). Relevantly, the concept of CEO tenure is amongst the most studied CEO characteristics in the upper echelons theory research (Finkelstein, Hambrick, & Cannella, 2009;Besar, Ali, & Ghani, 2017). Additionally, the literature might propose a reason beyond the concern of long-tenured CEOs for status to provide high quality financial reporting.…”

Section: Ceo Tenurementioning

confidence: 99%

Chief Executive Officer Characteristics and Financial Restatements in Malaysia

Altarawneh¹,

Shafie²,

Ishak³

2020

IJFR

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The purpose of this paper is to investigate whether the Chief Executive Officer (CEO) characteristics affect the occurrence of financial restatements in Malaysian firms. The CEO characteristics used in this study were tenure, honorific title, gender, expertise, and age. In addition, the financial restatement has been measured as a dummy variable as to whether companies restate their financial statements or not. The sample of this study comprised 442 companies listed in the main market of Bursa Malaysia during the period 2012–2016. The panel data method was utilised to analyse the data. This study employed a logistic regression analysis. The results of this study revealed that there is a positive and significant relationship between CEO tenure and CEO gender with financial restatements. In addition, this study found a negative and significant relationship between CEO honorific title and financial restatements. However, the results found insignificant relationships between CEO expertise and age with financial restatements. This study highlighted the importance of considering CEO characteristics as one of the influential determinants of financial restatements in Malaysian companies.

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Examining upper echelons managers’ characteristics on financial restatements

Cited by 5 publications

References 28 publications

Board of Directors and Financial Restatement: Evidence from The Two-Tier System

Board of Directors and Financial Restatement: Evidence from The Two-Tier System

The role of senior managers’ positive self-image in supporting MIS implementation

Chief Executive Officer Characteristics and Financial Restatements in Malaysia

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