CEO turnover, CFO turnover and earnings quality

Bessieux-Ollier, Corinne (Montpellier Business School, France) ; Poretti, Cédric (Ecole hôtelière de Lausanne, HES-SO // University of Applied Sciences Western Switzerland) ; Schatt, Alain (HEC lausanne, University of Lausanne, Switzerland)

We analyze the impact of 71 CEO changes and 120 CFO changes on earnings management in France, over the period 2007-2015. For the year of the CEO change, we find that CEO change is positively and significantly associated with earnings management, whereas no significant association is found for CFO changes. However, CEO change is only positively and significantly associated with earnings management when the incoming CEO is sitting on the board and the outgoing CEO is not sitting on the board. Thus, our findings allow us to better understand in which context management turnover is associated with lower earnings quality. Overall, our results should be interesting for investors who care about the quality of financial information.


Keywords:
Conference Type:
full paper
Faculty:
Economie et Services
School:
EHL
Subject(s):
Economie/gestion
Publisher:
Nice, France, 04-05 June 2018
Date:
2018-06
Nice, France
04-05 June 2018
Pagination:
29 p.
Published in:
Proceedings of the 17th CIG, 2018
Appears in Collection:

Note: The status of this file is: restricted


 Record created 2018-10-26, last modified 2019-06-11

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