<scp>CEO</scp> Characteristics and Internal Control Quality

Lin, Yu Chen; Wang, Ying Chieh; Chiou, Jeng Ren; Huang, Hua‐Wei

doi:10.1111/corg.12042

Cited by 88 publications

(83 citation statements)

References 117 publications

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“…There is also evidence that the CEO's age has a significant effect on mergers and acquisitions (Yim (2013). Lin et al (2014) found a significant negative relationship between CEOs' age and internal control quality. On the other hand, Bamber et al (2010) reported that managers born before World War II are more likely to have developed conservative communication styles than managers born after the war.…”

Section: Theoretical Framework and The Development Of A Hypothesismentioning

confidence: 99%

The effect of the CEO’s characteristics on EM: evidence from Jordan

Alqatamin

Aribi

Arun

2017

IJAIM

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Purpose This study aims to examine the effect of CEO’s personal characteristics on earnings management (EM) practices. Design/methodology/approach The authors use panel data for 201 non-financial companies listed on the Amman Stock Exchange (ASE) for the period 2008-2013. The authors use random effect models to test the hypothesis of this study and extent the analysis to family versus non-family. Findings The study finds a positive relation between CEO’s overconfidence and EM practices in Jordan. Moreover, the findings reveal that managers in family companies are more likely to engage in EM practices than non-family companies. The findings shed more light on the intricate relationship between CEO’s characteristics, the decision-making process and financial reporting. Practical implications Results of this study could be beneficial for a number of users of financial information such as investors, auditors, regulators, lenders, as well other players in the capital market to make right decisions. Originality/value A literature review finds that much less studies have investigated the relationship between EM practices and personal CEO characteristics (gender and overconfidence) in developing countries such as Jordan. Furthermore, no study yet has examined the influence of CEO age on EM practices. The authors extend previous literature by providing empirical evidence about effect of some personal CEO’s characteristics on EM practices.

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Section: Theoretical Framework and The Development Of A Hypothesismentioning

confidence: 99%

The effect of the CEO’s characteristics on EM: evidence from Jordan

Alqatamin

Aribi

Arun

2017

IJAIM

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“…To improve internal financial decisions, researchers found that high-quality internal controls improved the efficiency of investments and the ability to manage uncertainty [38]. Those companies with higher levels of internal control have lower equity capital and bank debt costs, and more commercial credit financing compared to others in the industry [39][40][41]. In summary, internal controls are not the only management activity available to improve efficiency and prevent risk, but are important for value creation.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Following prior studies [30][31][32]41], we used several control variables for the factors that have been shown to affect the dependent variables of stock price crash risk and internal control efficiency.…”

Section: Control Variablesmentioning

confidence: 99%

Corporate Social Responsibility, Internal Controls, and Stock Price Crash Risk: The Chinese Stock Market

Hao

Wang

2018

Sustainability

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Abstract:As the core of sustainable development strategy, corporate social responsibility (CSR) is a concept that influences business missions, management, operations, finance, and marketing. Studies of the economic consequences of CSR have focused on the theoretical and practical arenas. However, few studies have examined the impact of CSR on the market price fluctuations of company shares. The purpose of this study was to investigate the effect of CSR on stock price crash risk and its relationship with the role of internal controls in China. After empirical analysis, we found a significantly negative association between CSR and stock price crash risk. Furthermore, we determined that internal controls play a significant and partially mediating role between CSR and stock price crash risk. Internal controls have become an important system for Chinese companies to improve their social responsibility and reduce their operating risk, especially the risk of a stock price crash. We also found that internal controls had a significant and partial moderating effect on the relationship between CSR and stock price crash risk. In certain environments with higher levels of internal controls, CSR prominently reduced the risk of stock price crash. In theory, our study adds to the growing literature about CSR, expands the scope of CSR research, elaborates upon relevant CSR economic consequences, and complements the literature about the determinants of stock price crash risk. In practice, our conclusions provide a reference for Chinese managers, investors, and the related government departments to evaluate the effects of CSR and internal controls, and provides regulators with a method to help control abnormal fluctuations in the stock market. More importantly, the results of this study have reference value for scholars and practitioners in developing countries like China.

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“…The study measures the CEO age as the difference between date of birth and the years of the study period (Cornett et al 2009;Lin et al 2014). …”

Section: Independent Variablesmentioning

confidence: 99%

The effect of CEOs’ characteristics on forward-looking information

Alqatamin

Aribi

Arun

2017

JAAR

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Manuscript Type -EmpiricalPurpose -This paper aims to examine the effect of CEOs' characteristics on the level of FLI disclosure.Design/methodology/approach -The study uses a disclosure index to measure the level of FLI and employs random-effect and panel data regressions to examine the relationship between CEOs' characteristics and the level of FLI disclosure. The sample consists of 201 non-financial companies listed on the Amman Stock Exchange (ASE) for the period 2008-2013. Findings -The results show that the CEO age has a significant negative relationship with the level of FLI, whereas gender and overconfidence have a significant positive association with it.Practical implications -The results could be beneficial for a number of users of financial information, such as regulators, investors, auditors and lenders to make better decisions.Originality/value -The current study offers evidence of the effect of CEO characteristics on the level of FLI disclosure statements, particularly through narrative disclosures.

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CEO Characteristics and Internal Control Quality

Cited by 88 publications

References 117 publications

The effect of the CEO’s characteristics on EM: evidence from Jordan

The effect of the CEO’s characteristics on EM: evidence from Jordan

Corporate Social Responsibility, Internal Controls, and Stock Price Crash Risk: The Chinese Stock Market

The effect of CEOs’ characteristics on forward-looking information

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