Abstract
Drawing on regulatory focus theory and impression management literature, we examine the influences of CEO regulatory focus on earnings management. Furthermore, we show how the analyst recommendations differentially moderate the relationship between CEO promotion and prevention foci and earnings management. Based on U.S. public firms from 2003 to 2019, our findings indicate that CEO promotion focus is positively related to the magnitude of income-increasing earnings management, and CEO prevention focus is negatively related to the magnitude of income-increasing earnings management. In the context of positive analyst recommendations, the positive relationship between CEO promotion focus and income-increasing earnings management is strengthened, and the negative relationship between CEO prevention focus and income-increasing earnings management is weakened.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
