Effects of the specific characteristics of the CEO on accounting conservatism: a study in the US context. (2017)

• Record Type: Journal Article
• Authors: Chouaibi, Jamel; Chiekh, Samira
• Is Part Of: International journal of auditing technology. Volume 3:Number 4(2017)
• Page Start: 297
• Page End: 317
• Publication Date: 2017
• Subjects: accounting conservatism -- managerial overconfidence -- behavioural characteristics -- US context; Information storage and retrieval systems -- Accounting -- Periodicals; Computer security -- Management -- Periodicals; Information technology -- Auditing -- Periodicals; 657.450285
• Languages: English
• ISSNs: 1757-8752

Abstract

Our research work investigated the effect of the specific characteristics of the chef executive officer (CEO) on accounting conservatism. Based on a sample of the 100 US firms for the year 2015, the main findings show that the manager's overconfidence has a negative and significant impact on the accounting conservatism of the companies. This shows that companies had better recruit over-confident executives since they would tend to present less conservative financial reports which would enhance the future profitability of the company. Similarly, the age of the leader has a negative and significant impact on accounting conservatism because younger leaders are more confident and more tolerant of risk than older ones. However, manager's experience has no effect on accounting conservatism.