Journal article
Managers: Their Effects on Accruals and Firm Policies
Journal of business finance & accounting, Vol.40(1-2), pp.82-114
01/01/2013
DOI: 10.1111/jbfa.12012
Abstract
This paper investigates whether top executives have significant individual-specific effects on accruals that cannot be explained by firm characteristics. Exploiting individual executive and firm data from a period of 37 years, we find that individual executives play a significant role in determining firms' accruals. We examine whether executives' effects on accruals are related to their personal styles on firm policies, investment, financing and operating decisions. Our results show that individual executives' effects on accruals are more correlated with their operating decisions than investment and financing decisions. We next investigate whether managers themselves also have a personal style for directly affecting accruals. We compare effects exerted by CEOs to CFOs. We find CEOs are more likely to affect accruals through firm policy decisions and CFOs are more likely to affect accruals through accounting decisions. CFOs tend to report more solid' earnings than CEOs, i.e., CFOs are more likely to push accruals to zero.
Details
- Title: Subtitle
- Managers: Their Effects on Accruals and Firm Policies
- Creators
- Douglas Dejong - University of IowaZhejia Ling - Iowa State University
- Resource Type
- Journal article
- Publication Details
- Journal of business finance & accounting, Vol.40(1-2), pp.82-114
- DOI
- 10.1111/jbfa.12012
- ISSN
- 0306-686X
- eISSN
- 1468-5957
- Publisher
- Wiley
- Number of pages
- 33
- Language
- English
- Date published
- 01/01/2013
- Academic Unit
- Accounting
- Record Identifier
- 9984963046102771
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