CEO Network Connections and the Timeliness of Financial Reporting

IF 2.2 4区管理学 Q2 BUSINESS, FINANCE

Accounting Horizons Pub Date : 2023-06-24 DOI:10.2308/horizons-2021-056

M. Islam, William R. McCumber, Nusrat Farah, Huan Qiu

引用次数: 0

Abstract

We investigate the effects of CEO networks on the timeliness of financial reporting. Using a sample of over 2,000 firms for the period 2004–2017, we find that firms led by well-connected CEOs have lower earnings announcement lag, audit lag, and filing (10-K) lag. This timeliness is not at the expense of financial reporting quality and accuracy. These effects are stronger when firms have strong corporate governance and no material internal control weaknesses. Interestingly, the effect of CEO connectedness on timeliness is significant regardless of the intensity of demand for information from institutional investors and analysts but is stronger when information demand is lower. Overall, these findings suggest that improved information environment around well-connected CEOs leads to timely dissemination of high-quality information to the market. JEL Classifications: D85; M42.

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CEO网络连接与财务报告的及时性

我们调查了CEO网络对财务报告及时性的影响。使用2004-2017年期间2000多家公司的样本，我们发现由关系良好的首席执行官领导的公司具有较低的收益公告滞后，审计滞后和提交(10-K)滞后。这种及时性并不以牺牲财务报告的质量和准确性为代价。当企业拥有强大的公司治理且没有重大的内部控制缺陷时，这些效应更强。有趣的是，无论机构投资者和分析师对信息的需求强度如何，CEO连通性对时效性的影响都是显著的，但当信息需求较低时，其影响更强。总体而言，这些发现表明，在关系良好的ceo周围，信息环境的改善导致高质量信息及时传播到市场。JEL分类:D85;M42。

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

Accounting Horizons BUSINESS, FINANCE-

CiteScore

3.80

自引率

4.00%

发文量

期刊介绍： Accounting Horizons is one of three association-wide journals published by the American Accounting Association AAA. This journal seeks to bridge academic and professional audiences with articles that focus on accounting, broadly defined, and that provide insights pertinent to the accounting profession. The contents of Accounting Horizons, therefore, should interest researchers, educators, practitioners, regulators, and students of accounting.