Earnings management following duality-creating successions: Ethnostatistics, impression management, and agency theory

Wallace N. Davidson, Pornsit Jiraporn, Young Sang Kim, Carol Nemec

Research output: Contribution to journalReview article

134 Scopus citations

Abstract

We explore impression and earnings management via reasoning and methods grounded in ethnostatistics and agency theory. We hypothesized that earnings management occurs more frequently following duality-creating successions than otherwise because CEO-chairs have greater control of the impressions created by their firms' financial reports and are operating under greater expectations of positive results. Using a sample of 173 duality-creating succession announcements and 112 non-duality-creating succession announcements, we obtained empirical results consistent with these predictions.

Original languageEnglish (US)
Pages (from-to)267-275
Number of pages9
JournalAcademy of Management Journal
Volume47
Issue number2
DOIs
StatePublished - Apr 2004

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Business, Management and Accounting(all)
  • Strategy and Management
  • Management of Technology and Innovation

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