CEO Power, Corporate Governance Mechanisms and Earnings Quality

IF 0.7 Q4 BUSINESS, FINANCE

Asian Academy of Management Journal of Accounting and Finance Pub Date : 2023-06-22 DOI:10.21315/aamjaf2023.19.1.7

Dalia Ali, Mostafa Hemdan, Saif-Ur-Rehman, Faisal Khan

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引用次数: 0

Abstract

This article investigated the determinants of the firm’s earnings quality (FREQ) using panel data of Egyptian listed firms to address the concerns of endogeneity and heterogeneity. We found that CEO power dynamics negatively impact FREQ. Furthermore, corporate governance’s weakening or substitution role is investigated for the negative association between CEO power dynamics and FREQ. Our findings showed that board-independence significantly weakens the impacts of CEO- ownership and CEO-tenure on FREQ. In contrast, the results fail to support the weakening or substitution role of board-independence for the negative effects of CEO-duality and CEO-political connection on FREQ. Board gender diversity is not significantly associated with FREQ. However, we found that the presence of gender critical mass serves as a substitution mechanism for the negative association between CEO power dynamics and FREQ. Lastly, we observed strong robustness for our primary analysis through propensity matching scores and difference-in-different (DID) techniques. This study brings a novelty to existing research by exploring the negative consequences of CEO power dynamics. Furthermore, it provides an insight into the constraining or weakening of the role of corporate governance. The main findings of the current study are also robust to Modified Jones model (1995) reverse-causality, DID and propensity-matching techniques.

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CEO权力、公司治理机制与盈余质量

本文利用埃及上市公司的面板数据研究了公司盈余质量(FREQ)的决定因素，以解决内生性和异质性的问题。结果表明，董事会独立性显著削弱了CEO所有权和CEO任期对公司绩效绩效的影响，而董事会独立性显著削弱了CEO所有权和CEO任期对公司绩效绩效的影响。研究结果不支持董事会独立性弱化或替代CEO二元性和CEO政治联系对FREQ的负面影响，董事会性别多样性对FREQ的影响不显著，但我们发现性别临界质量的存在可以替代CEO权力动态与FREQ之间的负相关。通过倾向匹配得分和差异中差异(DID)技术，我们观察到我们的主要分析具有很强的稳健性。本研究对CEO权力动态的负面影响进行了探索，为现有研究带来了新意。此外，它还提供了对公司治理作用的约束或削弱的洞察。本研究的主要发现对于修正的Jones模型(1995)逆因果关系、DID和倾向匹配技术也具有鲁棒性。

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

Asian Academy of Management Journal of Accounting and Finance BUSINESS, FINANCE-

CiteScore

1.50

自引率

0.00%

发文量

审稿时长

20 weeks

期刊介绍： To provide a forum for the exchange of ideas and dissemination of empirical findings and analytical research in the specialized areas of accounting and finance with special emphasis on scholarly works with policy implications for countries in the Asia Pacific. The following are some of the topical subject areas relevant to the journal (but are not limited to): Accounting • Financial reporting and accounting standards • Auditing issues • Value based accounting and its relevance • Theory of accounting firm • Environmental auditing • Corporate governance issues • Public sector accounting Finance • Valuation of financial assets • International capital flows • Ownership and agency theory • Stock market behavior • Investment and portfolio management • Islamic banking and finance • Microstructures of financial markets