The effect of chief accounting officers on financial reporting quality
Abstract/Contents
- Abstract
- This study examines the effect of Chief Accounting Officers (CAOs) on financial reporting quality. I hypothesize that firms that employ a CAO will have better financial reporting quality. I posit that the CAO is different from other executives in incentives, priorities, and background and that they therefore provide valuable oversight over the firm financial reporting process. Indeed, I find that firms with CAOs have lower rates of severe restatements, instances of just meeting or beating earnings targets, and internal control weaknesses. I further structure tests that control for the firm's endogenous choice to appoint a CAO, with results that are generally consistent. I also test financial reporting quality by examining earnings management around seasoned equity offerings. I find that accruals earnings management is mitigated in CAO firms. Next, I examine CAO, CEO, and CFO compensation and career concerns to determine if differences in incentives drive these findings. CAO turnover occurs in the years around restatements and ICWs. I also find that CAO tenure is negatively associated with severe restatements, abnormal accruals, instances of just meeting or beating earnings targets, and internal control weaknesses Overall, these results suggest that having a designated CAO is associated with various improvements in financial reporting quality and that these improvements are related to the CAO's tenure within the firm
Description
| Type of resource | text |
|---|---|
| Form | electronic resource; remote; computer; online resource |
| Extent | 1 online resource |
| Place | California |
| Place | [Stanford, California] |
| Publisher | [Stanford University] |
| Copyright date | 2020; ©2020 |
| Publication date | 2020; 2020 |
| Issuance | monographic |
| Language | English |
Creators/Contributors
| Author | Mitsuda, Steven Alexander |
|---|---|
| Degree supervisor | McNichols, Maureen, 1953- |
| Thesis advisor | McNichols, Maureen, 1953- |
| Thesis advisor | Kasznik, Ron |
| Degree committee member | Gipper, Brandon |
| Degree committee member | Kasznik, Ron |
| Associated with | Stanford University, Graduate School of Business. |
Subjects
| Genre | Theses |
|---|---|
| Genre | Text |
Bibliographic information
| Statement of responsibility | Steven Mitsuda |
|---|---|
| Note | Submitted to the Graduate School of Business |
| Thesis | Thesis Ph.D. Stanford University 2020 |
| Location | electronic resource |
Access conditions
- Copyright
- © 2020 by Steven Alexander Mitsuda
- License
- This work is licensed under a Creative Commons Attribution 3.0 Unported license (CC BY).
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