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Executive Turnover, Gender, And Earnings Management: An Exploratory Analysis

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  • Emilia Vähämaa

Abstract

This paper examines the relationship between the Chief Financial Officer (CFO) turnover and earnings management. Based on cross‐sectional panel regressions on a three‐year sample of the Standard & Poor's (S&P) 1500 firms, the following findings are reported: (1) CFO turnover is accompanied by income‐decreasing earnings management; (2) discretionary accruals tend to become more negative when a male CFO is replaced by a female; (3) earnings management increases income if the outgoing CFO is a female and the incoming is a male and in the case of male–male CFO changes. Overall, these results indicate that the firms who hire a female CFO after a male tend to shift toward more conservative financial reporting practices. Résumé L'auteure étudie la relation entre la rotation des chefs des services financiers et la gestion du résultat. Les conclusions qu'elle tire de régressions transversales par panel réalisées sur un échantillon de trois ans de sociétés du groupe S&P 1500 sont les suivantes : i) la rotation des chefs des services financiers s'accompagne d'activités de gestion du résultat réduisant le bénéfice; ii) les ajustements discrétionnaires tendent à devenir plus négatifs lorsqu'une femme remplace un homme aux fonctions de chef des services financiers; iii) les activités de gestion du résultat visent davantage à augmenter le bénéfice lorsqu'un homme remplace une femme et lorsqu'un homme remplace un homme aux fonctions de chef des services financiers. Dans l'ensemble, ces résultats révèlent que les sociétés dans lesquelles une femme remplace un homme aux fonctions de chef des services financiers ont tendance à privilégier des pratiques plus prudentes en matière d'information financière.

Suggested Citation

  • Emilia Vähämaa, 2014. "Executive Turnover, Gender, And Earnings Management: An Exploratory Analysis," Accounting Perspectives, John Wiley & Sons, vol. 13(2), pages 103-122, June.
    • Handle: RePEc:wly:accper:v:13:y:2014:i:2:p:103-122
    DOI: 10.1111/1911-3838.12029
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    References listed on IDEAS

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