search query: @indexterm financial management / total: 951
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| Author: | Jiang, J. Petroni, K. R. Wang, I. Y. |
| Title: | CFOs and CEOs: Who have the most influence on earnings management? |
| Journal: | Journal of Financial Economics
2010 : JUN, VOL 96:3, p. 513-526 |
| Index terms: | executive remuneration chief executive officers financial management incentives |
| Language: | eng |
| Abstract: | It has been shown by previous research that equity incentives of the chief executive officer (CEO) have a positive effect on earnings management. This paper, however, focuses on studying the relation between equity incentives of the chief financial officer (CFO) and earnings management. The authors argue that CFO incentives should affect earnings management more strongly than CEO incentives, as the primary role of CFO is financial reporting. The results of the study demonstrate that indeed, CFO equity incentives have a greater impact on the magnitude of accruals and probability of beating analyst forecasts. |
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