The effect of CEO inside debt holdings on financial reporting quality

He, G.

Abstract

This study investigates the effect of CEO inside debt holdings on financial reporting quality. I find that higher CEO inside debt holdings are associated with lower abnormal accruals, higher accruals quality, a lower likelihood of an earnings misstatement, and a lower incidence of earnings benchmark beating, suggesting that CEO inside debt promotes high financial reporting quality. Additional analyses reveal that (1) CEO inside debt holdings reduce firm-specific stock price crash risk, and that (2) auditors are less likely to report a material internal control weakness for firms that have large CEO inside debt.

Citation

He, G. (2015). The effect of CEO inside debt holdings on financial reporting quality. Review of Accounting Studies, 20(1), 501-536. https://doi.org/10.1007/s11142-014-9305-8

• Journal Article Type: Article
• Acceptance Date: Aug 18, 2014
• Online Publication Date: Aug 31, 2014
• Publication Date: Mar 1, 2015
• Deposit Date: Dec 5, 2017
• Publicly Available Date: Dec 6, 2017
• Journal: Review of Accounting Studies
• Print ISSN: 1380-6653
• Electronic ISSN: 1573-7136
• Publisher: Springer
• Peer Reviewed: Peer Reviewed
• Volume: 20
• Issue: 1
• Pages: 501-536
• DOI: https://doi.org/10.1007/s11142-014-9305-8
• Public URL: https://durham-repository.worktribe.com/output/1370091