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Chairman Characteristics and Earnings Management: Evidence from Chinese Listed Firms

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DOI: 10.4236/ojacct.2016.54008    1,519 Downloads   2,433 Views Citations
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ABSTRACT

Using a large sample of Chinese listed companies during period from 2005 to 2014, this paper investigates whether the managerial characteristics of Chairman affect earnings management. Using McNichols [1] accrual-based and Roychowdhury [2] real earning management, we find that companies with female, long-tenured, older and more educated Chairman have lower absolute discretionary accruals and lower real earnings management after controlling other factors that prior research has shown to be associated with earnings management. The results suggest that Chinese listed companies can improve earning quality by appointing more female, experienced, and educated chairmen, as well as increasing the tenure of Chairman.

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Xiong, J. (2016) Chairman Characteristics and Earnings Management: Evidence from Chinese Listed Firms. Open Journal of Accounting, 5, 82-94. doi: 10.4236/ojacct.2016.54008.

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