The effect of social ties between the CEO and board of directors and fiscal council's members on earnings management

IF 3.2 Q1 BUSINESS, FINANCE
F. Ramos, Letícia Gomes Locatelli, Graça Maria do Carmo Azevedo, C. M. Costa
{"title":"The effect of social ties between the CEO and board of directors and fiscal council's members on earnings management","authors":"F. Ramos, Letícia Gomes Locatelli, Graça Maria do Carmo Azevedo, C. M. Costa","doi":"10.1108/jaee-07-2021-0243","DOIUrl":null,"url":null,"abstract":"PurposeSocial factors can shape economic decisions. Corporate governance (CG) studies and guidelines usually neglect that the chief executive officer (CEO) and board members may be socially tied. This study investigates the effects of social ties between the CEO and board members on earnings management (EM).Design/methodology/approachThe authors run a series of regressions using a sample of Brazilian companies listed on the Brazilian Stock Exchange [B]³ between 2011 and 2017 to assess the effect of the social ties between the CEO and board members on EM using a social ties index. The authors also employ five robustness tests to verify the consistency of results, including alternative proxies of EM and social ties and an estimation using fixed effects.FindingsAfter developing and computing a social ties index between the CEOs and members of the board of directors (BD) and the fiscal council (FC), the study’s findings indicate that a significant level of social ties between the CEO and BD has a negative impact on EM. However, for FC members, the authors found non-significant results.Originality/valueUnlike previous studies, the authors built a social tie index (STI) from five elements of social ties assessed in an environment with a two-tier board system. Results show that elements of social interactions and personal relationships can benefit the company, as a CEO's level of social ties with the BD reduces EM practices.","PeriodicalId":45702,"journal":{"name":"Journal of Accounting in Emerging Economies","volume":" ","pages":""},"PeriodicalIF":3.2000,"publicationDate":"2022-08-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Accounting in Emerging Economies","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/jaee-07-2021-0243","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 1

Abstract

PurposeSocial factors can shape economic decisions. Corporate governance (CG) studies and guidelines usually neglect that the chief executive officer (CEO) and board members may be socially tied. This study investigates the effects of social ties between the CEO and board members on earnings management (EM).Design/methodology/approachThe authors run a series of regressions using a sample of Brazilian companies listed on the Brazilian Stock Exchange [B]³ between 2011 and 2017 to assess the effect of the social ties between the CEO and board members on EM using a social ties index. The authors also employ five robustness tests to verify the consistency of results, including alternative proxies of EM and social ties and an estimation using fixed effects.FindingsAfter developing and computing a social ties index between the CEOs and members of the board of directors (BD) and the fiscal council (FC), the study’s findings indicate that a significant level of social ties between the CEO and BD has a negative impact on EM. However, for FC members, the authors found non-significant results.Originality/valueUnlike previous studies, the authors built a social tie index (STI) from five elements of social ties assessed in an environment with a two-tier board system. Results show that elements of social interactions and personal relationships can benefit the company, as a CEO's level of social ties with the BD reduces EM practices.
CEO与董事会和财务委员会成员的社会关系对盈余管理的影响
目的社会因素可以影响经济决策。公司治理研究和指导方针通常忽略了首席执行官和董事会成员可能存在社会联系。本研究调查了首席执行官和董事会成员之间的社会关系对盈余管理(EM)的影响。设计/方法论/方法作者使用2011年至2017年间在巴西证券交易所[B]³上市的巴西公司样本进行了一系列回归,以使用社会关系指数评估首席执行官与董事会成员间的社会联系对EM的影响。作者还使用了五个稳健性测试来验证结果的一致性,包括EM和社会关系的替代代理以及使用固定效应的估计。研究结果在开发和计算了首席执行官、董事会成员和财政委员会成员之间的社会关系指数后,研究结果表明,首席执行官和董事会成员之间的显著社会关系对EM有负面影响。然而,对于财政委员会成员,作者发现结果并不显著。独创性/价值与以往的研究不同,作者根据在双层董事会系统的环境中评估的社会关系的五个要素建立了社会关系指数(STI)。结果表明,社会互动和个人关系的要素可以使公司受益,因为首席执行官与BD的社会关系水平减少了EM实践。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
CiteScore
5.80
自引率
13.00%
发文量
38
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术官方微信