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Managerial ability and earnings management: The moderating role of career concerns✰

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  • Liao, Haojie
  • Wei, Yi
  • Wang, Yun
  • Lin, Yibin
  • Tan, RongYong

Abstract

This paper considers the relationship between managerial ability and earnings management from a career concerns perspective. The empirical analysis is conducted by selecting 2015–2021 A-share listed companies in China's stock markets. We find that the relationship between managerial capability and earnings management is negative, and the relationship between managerial ability and real earnings management is positive. The positive relationship between managerial ability and real earnings management is significantly affected by the career concerns.

Suggested Citation

  • Liao, Haojie & Wei, Yi & Wang, Yun & Lin, Yibin & Tan, RongYong, 2023. "Managerial ability and earnings management: The moderating role of career concerns✰," Finance Research Letters, Elsevier, vol. 57(C).
    • Handle: RePEc:eee:finlet:v:57:y:2023:i:c:s1544612323006414
    DOI: 10.1016/j.frl.2023.104269
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