A fall into the pit, a gain in your wit: Top managerial career setback experience and accounting conservatism

IF 2 4区管理学 Q3 BUSINESS

Australian Journal of Management Pub Date : 2024-02-03 DOI:10.1177/03128962231222770

Zhong‐qin Su, Yiting Zhu, W. Su, Zuoping Xiao

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引用次数: 0

Abstract

This study investigates the relationship between chief executive officers (CEOs) and chief financial officers (CFOs) with career setbacks and firms’ accounting conservatism. Using manually collected data from Chinese listed firms, this study finds that firms run by CEOs/CFOs who experienced career setbacks adopt more conservative accounting policies. In addition, the degree and timing of career setbacks and the experience of demotion and penalization by regulations affect CEOs’/CFOs’ decision-making. The results are robust to a battery of checks and analyses, including the propensity score matching procedure, the difference-in-differences method, and alternative measures. Further evidence suggests that the positive association between CEOs/CFOs with career setbacks and firms’ accounting conservatism is more pronounced at firms with better corporate governance, effective internal control, and higher financial constraints. This study also shows that financially conservative firms have more cash holding, which is positively correlated with career setbacks. JEL Classification: G34, M41, G41

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跌入深渊，收获机智：高层管理者的职业挫折经历与会计保守主义

本研究探讨了首席执行官（CEO）和首席财务官（CFO）职业挫折与公司会计保守主义之间的关系。通过人工收集中国上市公司的数据，本研究发现，经历过职业挫折的首席执行官/首席财务官所管理的公司会采取更保守的会计政策。此外，职业挫折的程度和时间以及被降职和受到监管处罚的经历也会影响首席执行官/首席财务官的决策。通过一系列的检验和分析，包括倾向得分匹配程序、差分法和其他测量方法，这些结果都是稳健的。进一步的证据表明，CEO/CFO 的职业挫折与公司的会计保守主义之间的正相关关系，在公司治理较好、内部控制有效、财务约束较高的公司更为明显。本研究还表明，财务保守的公司持有更多现金，这与职业挫折呈正相关。JEL 分类：G34，M41，G41

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Australian Journal of Management Multiple-

CiteScore

10.60

自引率

4.20%

发文量

期刊介绍： The objectives of the Australian Journal of Management are to encourage and publish research in the field of management. The terms management and research are both broadly defined. The former includes the management of firms, groups, industries, regulatory bodies, government, and other institutions. The latter encompasses both discipline- and problem-based research. Consistent with the policy, the Australian Journal of Management publishes research in accounting, applied economics, finance, industrial relations, political science, psychology, statistics, and other disciplines, provided the application is to management, as well as research in areas such as marketing, corporate strategy, operations management, organisation development, decision analysis, and other problem-focuses paradigms.