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Chief financial officer demographic characteristics and fraudulent financial reporting in China

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  • Jinghui Sun
  • Pamela Kent
  • Baolei Qi
  • Jiwei Wang

Abstract

We investigate whether management's cognitions, values and perceptions are associated with fraud for 18 863 firm‐years for Chinese listed firms from 2000 to 2014. Demographic characteristics of the chief financial officer (CFO) are used as proxies for management's cognitions, values and perceptions. We find that fraudulent financial reporting is higher when CFOs are younger, male, and have lower education backgrounds. An analysis of inflated earnings, fictitious assets, material omissions and other material misstatements provide similar results, with the exception that CFOs with higher education levels are associated with more inflated earnings.

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  • Jinghui Sun & Pamela Kent & Baolei Qi & Jiwei Wang, 2019. "Chief financial officer demographic characteristics and fraudulent financial reporting in China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 59(4), pages 2705-2734, December.
    • Handle: RePEc:bla:acctfi:v:59:y:2019:i:4:p:2705-2734
    DOI: 10.1111/acfi.12286
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