Download or read book Chief Operating Officers and Real Earnings Management written by Cory A. Cassell and published by . This book was released on 2019 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: Because Chief Operating Officers (COOs) are responsible for internal operations and because the use of real earnings management (REM) can have negative consequences on longterm operating performance, we posit that COO firms will be less likely to use REM to inflate near-term earnings. Consistent with this, we find that the level of REM is lower for firms with COOs in their list of named executive officers than for other firms. In subsequent tests, we investigate whether the use of REM varies based on whether COOs are dedicated operations officers or are likely to ascend to the Chief Executive Officer position. Using several approaches to classifying COOs as dedicated versus non-dedicated, we find that relative to firms with nondedicated COOs and firms without COOs, firms with dedicated COOs engage in less REM. Overall, our results suggest that the presence of a COO restricts the use of REM on average, and that this effect is driven by those COOs who are dedicated operations officers.
Download or read book Earnings Management and Chief Executive Officer Changes written by Ngia Nghee Chua and published by . This book was released on 2002 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Earnings Quality written by Jennifer Francis and published by Now Publishers Inc. This book was released on 2008 with total page 97 pages. Available in PDF, EPUB and Kindle. Book excerpt: This review lays out a research perspective on earnings quality. We provide an overview of alternative definitions and measures of earnings quality and a discussion of research design choices encountered in earnings quality research. Throughout, we focus on a capital markets setting, as opposed, for example, to a contracting or stewardship setting. Our reason for this choice stems from the view that the capital market uses of accounting information are fundamental, in the sense of providing a basis for other uses, such as stewardship. Because resource allocations are ex ante decisions while contracting/stewardship assessments are ex post evaluations of outcomes, evidence on whether, how and to what degree earnings quality influences capital market resource allocation decisions is fundamental to understanding why and how accounting matters to investors and others, including those charged with stewardship responsibilities. Demonstrating a link between earnings quality and, for example, the costs of equity and debt capital implies a basic economic role in capital allocation decisions for accounting information; this role has only recently been documented in the accounting literature. We focus on how the precision of financial information in capturing one or more underlying valuation-relevant constructs affects the assessment and use of that information by capital market participants. We emphasize that the choice of constructs to be measured is typically contextual. Our main focus is on the precision of earnings, which we view as a summary indicator of the overall quality of financial reporting. Our intent in discussing research that evaluates the capital market effects of earnings quality is both to stimulate further research in this area and to encourage research on related topics, including, for example, the role of earnings quality in contracting and stewardship.
Download or read book The Chief Financial Officer written by The Economist and published by The Economist. This book was released on 2014-04-08 with total page 162 pages. Available in PDF, EPUB and Kindle. Book excerpt: The rapid rise in importance of the role of the chief financial officer -- from back-office accountant to front-line executive -- is unrivaled by that of any other corporate position. With access to every facet of the business, CFOs now wield a level of influence matched only by chief executives. This book explains how CFOs earned their privileged status, and what the future may hold for them. It describes their ever-expanding role, and how they are reshaping their departments to help them deal with that transformation. Insights from current and former CFOs provide a first-hand perspective on finance leaders' aspirations and doubts. It is a useful reference for finance chiefs seeking to learn from peers and benchmark their own performance; for those looking to build a career in the C-Suite; for managers seeking to improve their relationship with the finance department; for service providers -- banks, accountancies and consulting firms -- and anyone else who wants to get on the good side of the keeper of the corporate checkbook.
Download or read book Introduction to Earnings Management written by Malek El Diri and published by Springer. This book was released on 2017-08-20 with total page 120 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides researchers and scholars with a comprehensive and up-to-date analysis of earnings management theory and literature. While it raises new questions for future research, the book can be also helpful to other parties who rely on financial reporting in making decisions like regulators, policy makers, shareholders, investors, and gatekeepers e.g., auditors and analysts. The book summarizes the existing literature and provides insight into new areas of research such as the differences between earnings management, fraud, earnings quality, impression management, and expectation management; the trade-off between earnings management activities; the special measures of earnings management; and the classification of earnings management motives based on a comprehensive theoretical framework.
Download or read book Earnings Management written by Joshua Ronen and published by Springer Science & Business Media. This book was released on 2008-08-06 with total page 587 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is a study of earnings management, aimed at scholars and professionals in accounting, finance, economics, and law. The authors address research questions including: Why are earnings so important that firms feel compelled to manipulate them? What set of circumstances will induce earnings management? How will the interaction among management, boards of directors, investors, employees, suppliers, customers and regulators affect earnings management? How to design empirical research addressing earnings management? What are the limitations and strengths of current empirical models?
Download or read book Research in Accounting in Emerging Economies written by Shahzad Uddin and published by Emerald Group Publishing. This book was released on 2010-12-02 with total page 310 pages. Available in PDF, EPUB and Kindle. Book excerpt: Includes research papers that examines various issues including the adoption of International Financial Reporting Standards (IFRS) and International Public Sector Accounting Standards (IPSASs), management accounting change in the context of public sector reforms, corporate reporting disclosures, auditing, etcetera.
Download or read book CEO Characteristics and Earnings Management written by Thai Quoc Nguyen and published by . This book was released on 2018 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: Previous research suggests that share-financed acquirers inflate their earnings before merger and acquisition announcements. The existing literature also indicates that characteristics of chief executive officers (CEO) could affect earnings management. In this study, we extend prior studies by examining the relationships between CEO characteristics and accrual earnings management in share-financed acquirers before mergers and acquisitions. We find that CEOs with high financial expertise and high reputation are associated with lower abnormal accruals in stock acquirers. The correlations are statistically significant and consistently exist in the first year before deal announcements. The findings are robust as we measure abnormal accruals in different ways and employ different models. The evidence suggests that CEO characteristics have an impact on earnings management in the contexts of mergers and acquisitions and have some implications for practitioners.
Download or read book Riding Shotgun written by Nathan Bennett and published by Stanford University Press. This book was released on 2006-06-09 with total page 198 pages. Available in PDF, EPUB and Kindle. Book excerpt: The role of Chief Operations Officer is clearly important. In fact, it has been argued that the number two position is the toughest job in a company. COOs are typically the key individuals responsible for the delivery of results on a day-to-day, quarter-to-quarter basis. They play a critical leadership role in executing the strategies developed by the top management team. And, in many cases, they are being groomed to be—or are actually being tested as—the firm's CEO-elect. Despite all this, the COO role has not received much attention. Riding Shotgun: The Role of the COO provides a new understanding of this little-understood role. The authors—a scholar and a consultant—develop a framework for understanding who the COO is, why a company would want to create this position, and the challenges associated with successful performance in the COO role. Drawing heavily on a number of first-person accounts from CEOs and other top executives in major corporations, the authors have developed a set of strategies or principles to inform individuals who aspire to serve in such a position. The executives who share their experiences in this book are from some of the most established and important companies in today's economy: AirTran; American Standard Companies; Amgen; Adobe Systems, Inc.; Autodesk, Inc; eBay; Heidrick & Struggles; InBev; Kohlberg Kravis Roberts & Company; Mattel, Inc; Motorola; PepsiCo; Raytheon Company; Starbucks; and many others. Excerpts from the Book: On focusing on success "The primary goal I set for myself on how I define what success looks like for me is am I working at a company that matters? Am I working with somebody who I think affects positive change? Am I providing a benefit to my family? Am I enjoying myself? Why would I put a limitation on my enjoyment? There is an old view on Wall Street that says, 'They love you until they don't.' I am going to stay happy until I am not."—Dan Rosensweig, COO Yahoo! On the relationship between the CEO and COO "Deep down, you have to trust each other and you have to like each other. If you don't like each other, and/or don't trust each other, it may work, kind of, but it will be at a fifty percent level at best."—Craig Weatherup, Director, Starbucks, and former Chairman, Pepsi On the challenges of transitioning into the COO role "If you can't conceptualize the strategic objectives or help drive that or participate in that, I don't think you are going to succeed. But, equally, if you can't translate that into an executable plan, you are not going to succeed either."—Shantanu Narayen, COO, Adobe Systems Additional Quotes: "Miles & Bennett tackle an important and drastically under-researched area: the role, personalities, fit and success factors of COOs. We've seen several COOs who have been total winners, but it's striking how different the models of success can be depending on role, personal competencies, business situation/cycle/type, team strengths, and CEO strengths. The authors have done a very nice job of tying all of this together."—Jim Williams, Partner, Texas Pacific Group "The lessons reported in this book will be very useful to Boards, Heads of Human Resources and CEOs as they consider succession planning and organizational design."—Dale Morrison, President & Chief Executive Officer, McCain Foods Limited "The job of COO is becoming more important as companies and their boards look internally for succession alternatives. One question they face: Will the organization continue to run as the number 2 becomes the number 1? Riding Shotgun will help answer this and many more questions about the COO role in today's corporate structure."—John Berisford, Senior Vice President, Human Resources, The Pepsi Bottling Group "The COO plays a critical leadership role in most businesses, but its particularly true in the natural resources industry. Getting the right person on board and making sure that they are set up for success is critical. The information presented in this book is long overdue and will certainly help CEOs and Boards successfully design and implement the COO position."—Charles (Chip) Goodyear, Chief Executive Officer, BHP Billiton "With the recent emphasis on enterprise performance and CEO succession planning, this book is a must-read for board members and executives who want to drive leadership capability and ensure sustained performance in their companies."—Carlos Cardoso, Chief Executive, Kennametal Inc. "Under a weak CEO, the job is nothing short of agony. Under a great CEO, the COO's job is the best in the world-grounded in execution and performance metrics."—Paula Rosput Reynolds, President and Chief Executive Officer, Safeco Corp. "The takeaways in this book are critical to anyone whose work touches that of the COO—CEOs, boards, top managers—COOs themselves. That said, a great deal of the lessons herein will help any one more effectively manage their relationship with their boss or their number two—wherever they sit in an organization."—Kevin Cox, Executive Vice President, Human Resources and Quality, American Express Financial Services, Inc. "What makes for a successful relationship between the CEO and chief operating officer? Why do there seem to be so many examples where it just doesn't work as intended? Miles and Bennett offer well thought through perspectives on the factors which influence the success or failure of the chief operating officer role in today's corporation, supported by candid interviews with a number of well-known leaders. The result is a highly readable book which will help those considering creating such a role to go into it with their eyes wide open."—Lucien Alziari, Senior Vice President, Human Resources, Avon Products, Inc. For more information, please visit the Riding Shotgun website.
Download or read book Managerial Attributes and Accounting and Financial Practices written by Sarfraz A. Khan and published by . This book was released on 2013 with total page 274 pages. Available in PDF, EPUB and Kindle. Book excerpt: This research consists of two essays that examine the impact of managerial attributes on a firm's accounting and financial practices. Essay 1 documents the relationship between Chief Executive Officer (CEO) and Chief Financial Officer (CFO) power, and earnings management decisions. My investigation reveals that the use of specific earnings mechanism, such as accruals and real activities management, is inversely related to its cost. Further, I do not find any consistent evidence to support that the relative power of CEOs and CFOs interacts with the costs of these earnings management mechanism to determine the specific components used in the earnings management mix. In second essay, I examine whether the quality of earnings and financial policies of a firm improves when its CFO serves on another company's board of directors. Consistent with my hypotheses, I find that firms with their CFOs on outside boards are associated with better accruals quality, lower likelihood of restatements, more persistent earnings, and greater financial flexibility, as reflected in faster adjustment toward target debt ratios and lower sensitivity between cash holdings and cash flow shocks. These findings are based on several methods that control for unobserved factors that may affect both incidence of CFO outside directorship and a firm's accounting and financial policies.
Download or read book Chief Operating Officer written by Jeff Geary and published by . This book was released on 2020-01-22 with total page 190 pages. Available in PDF, EPUB and Kindle. Book excerpt: If you want to become a more effective and appreciated leader, improving the knowledge of all the technical areas and traits that the role of COO embraces, then keep reading. The Chief Operating Officer is the second-in-direction to the CEO. It supervises all tasks and guarantee that groups progress in the direction of accomplishing the business objectives. The COO will give initiative and vital vision to the organisation. It will bring operational, administrative, and authoritative methodology, revealing structures and activity controls to the organization. The COO will adequately convey and encourage development among the official group and all representatives. It is a crucial position of authority that will drive results, prod development, and increment the general proficiency of the company. Driving the organization's working capacities to outperform consumer loyalty and maintenance and company objectives. Controlling organization costs and acquainting strategic activities with address robbery and different misfortunes. Checking solicitations, money taking care of techniques accounting and bank processes. Specifically, the chapters of this book cover the following topics among others: What are a COO and his role in an organization? Why a Coo is so important List of management dictionary and definitions Become a Coo: How, Role, strategy, etc. List and explanation of the Coo character traits How to win: daily habits, mindset, ability, etc. for success List of disciplines Technical areas: finance, human resources, operations, governance, risks, legal, compliance, communications, public relations, etc Relationship with the board of directors Coo VS CEO Features of the Coo of the future in the digital economy Practical insight Shortlist of Coo case success stories So, if you need a practical handbook that covers all the strategies, roles, risks, technical areas, future aspects, practical insight and traits should be in the COO, this book is for you.Scroll up to the top of the page and click the "Buy Now" button. The secret of you success is one click away!
Download or read book Evidence on the Tradeoff Between Real Manipulation and Accrual Manipulation to 25 Pages 26 to 50 Pages 51 to 75 Pages 76 to 100 Pages 101 to 120 written by Amy Yunzhi Zang and published by ProQuest. This book was released on 2000 with total page 120 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Der chief operating officer COO written by Oliver Lüth and published by . This book was released on 2008 with total page 75 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Effect of CEO s General Ability on Company Performance written by Leila Zbib and published by . This book was released on 2019 with total page 103 pages. Available in PDF, EPUB and Kindle. Book excerpt: I show that Chief Executive Officers (CEOs) that have accumulated general managerial skills through lifetime work experience demonstrate enhanced performance in the takeover market, as measured by market reactions to the deal. These reactions are more pronounced when the CEO acquires small, but complex firms, suggesting target selection as an underlying mechanism. I find no evidence that the effect stems from the structure of the deal or the CEO's past M&A activity. I also find that the documented increase in innovative activity for firms with high general ability is heightened when the CEO makes acquisitions. In sum, the evidence suggests that the increased pay for generalist CEOs is partially justified by their performance in the takeover market. I also provide evidence that CEOs with broad experience in their background are more likely to utilize discretionary accruals than CEOs with focused experience. This appears to be a result of transitions to CEOs with high general ability and not simply a selection of these CEOs by firms that utilize discretionary accruals extensively. Two mechanisms appear to underlie this result. First, CEOs with general ability tend to manage earnings when more options are exercised. Second, CEOs with high general ability appear more willing to bear the risk inherent in the use of discretionary accruals given their enhanced tolerance for failure stemming from outside career options.
Download or read book Executive Compensation and Shareholder Value written by Jennifer Carpenter and published by Springer Science & Business Media. This book was released on 2013-04-17 with total page 159 pages. Available in PDF, EPUB and Kindle. Book excerpt: Executive compensation has gained widespread public attention in recent years, with the pay of top U.S. executives reaching unprecedented levels compared either with past levels, with the remuneration of top executives in other countries, or with the wages and salaries of typical employees. The extraordinary levels of executive compensation have been achieved at a time when U.S. public companies have realized substantial gains in stock market value. Many have cited this as evidence that U.S. executive compensation works well, rewarding managers who make difficult decisions that lead to higher shareholder values, while others have argued that the overly generous salaries and benefits bear little relation to company performance. Recent conceptual and empirical research permits for the first time a truly rigorous debate on these and related issues, which is the subject of this volume.
Download or read book The Strategic Engagement of Narcissistic CEOs in Earnings Management written by Frerich Buchholz and published by . This book was released on 2014 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: In corporate governance literature, the focus often lies on ex-post mechanisms like the composition of the board of directors or ownership structure and their impact on restricting earnings manipulation (García-Meca & Sánchez-Ballesta, 2009). In addition to that a recent string of literature takes personality characteristics like striving for reputation or prestige as an ex-ante measure into account to investigate the relationship between management decisions and managerial misbehaviour (Malmendier & Tate, 2009). This study extends the latter line of literature by examining the relationship between chief executive officers' (CEOs) narcissistic behaviour and firms' financial reporting. It is argued that narcissistic persons manipulate accounting choices to enhance a firm's and inherently their particular track record with the intention of achieving self-enhancement (Olsen, Dworkis, & Young, 2013). To measure an individual's personality we build on a set of 15 indicators reflecting narcissistic behaviour of 1,126 CEOs in 671 companies listed in the S&P 500 index for the period of 1992 to 2012. Accrual- and real-operating-based earnings management are proxies for managerial misbehaviour. The results give evidence for an engagement of highly narcissistic CEOs in accrual-based earnings management. Interestingly, CEOs with a high narcissistic personality do not solely strive for increasing earnings by accounting choices. They also lower earnings; especially in the first two years they serve on the board when compared to their less narcissistic peers. Robust to anomalies, which occur in appearance of CEO turnover and succession, we conclude that these CEOs make strategic use of accrual-based earnings in order to polish up the personal track record of their tenure in subsequent years.
Download or read book The Routledge Companion to Financial Accounting Theory written by Stewart Jones and published by Routledge. This book was released on 2015-05-22 with total page 559 pages. Available in PDF, EPUB and Kindle. Book excerpt: Financial accounting theory has numerous practical applications and policy implications, for instance, international accounting standard setters are increasingly relying on theoretical accounting concepts in the creation of new standards; and corporate regulators are increasingly turning to various conceptual frameworks of accounting to guide regulation and the interpretation of accounting practices. The global financial crisis has also led to a new found appreciation of the social, economic and political importance of accounting concepts generally and corporate financial reporting in particular. For instance, the fundamentals of capital market theory (i.e. market efficiency) and measurement theory (i.e. fair value) have received widespread public and regulatory attention. This comprehensive, authoritative volume provides a prestige reference work which offers students, academics, regulators and practitioners a valuable resource containing the current scholarship and practice in the established field of financial accounting theory.
