Earnings management surrounding CEO changes

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dc.contributor.author Wells, PA
dc.date.accessioned 2010-05-28T09:53:33Z
dc.date.issued 2002-01
dc.identifier.citation Accounting and Finance, 2002, 42 (2), pp. 169 - 193
dc.identifier.issn 0810-5391
dc.identifier.other C1UNSUBMIT en_US
dc.identifier.uri http://hdl.handle.net/10453/10017
dc.description.abstract This paper investigates the extent of earnings management in the periods surrounding CEO changes by Australian firms. Evidence is presented of incoming CEOs undertaking earnings management to reduce income in the year of CEO change, with abnormal and extraordinary items being the primary vehicle through which this is achieved. This result is consistent with the notion of new CEOs engaging in an `earnings bath, and is strongest for nonroutine CEO changes, where the opportunities to manage earnings are greatest. Extending prior work, classification of CEO changes as routine or nonroutine is based on an expanded information search, and this provides insights into the CEO change process and identifies problems with simpler mechanistic classification methods. Additionally, detailed information of the operation of the modified Jones model for estimating expected accruals is presented, and this is consistent with such models having low explanatory power in identifying abnormal accruals.
dc.format Y
dc.publisher Blackwell Publishing
dc.title Earnings management surrounding CEO changes
dc.type Journal Article
dc.parent Accounting and Finance
dc.journal.volume 2
dc.journal.volume 42
dc.journal.number 2 en_US
dc.publocation Oxford, UK en_US
dc.identifier.startpage 169 en_US
dc.identifier.endpage 193 en_US
dc.cauo.name BUS.School of Accounting en_US
dc.conference Verified OK en_US
dc.for 150303 Corporate Governance and Stakeholder Engagement
dc.for 150103 Financial Accounting
dc.personcode 920016
dc.percentage 50 en_US
dc.classification.name Financial Accounting en_US
dc.classification.type FOR-08 en_US
dc.edition en_US
dc.custom en_US
dc.date.activity en_US
dc.location.activity en_US
dc.description.keywords CEO change processes, Earnings management, Management compensation en_US
dc.description.keywords CEO change processes, Earnings management, Management compensation
dc.description.keywords CEO change processes, Earnings management, Management compensation
pubs.embargo.period Not known
pubs.organisational-group /University of Technology Sydney
pubs.organisational-group /University of Technology Sydney/Faculty of Business
pubs.organisational-group /University of Technology Sydney/Faculty of Business/School of Accounting


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