CFO Effort and Public Firms' Financial Information Environment*

• 成果类型: Article
• 署名作者: Biggerstaff, Lee E.; Cicero, David C.; Goldie, Brad; Reid, Lauren C.
• 署名单位: University System of Ohio; Miami University; Auburn University System; Auburn University; Wake Forest University
• 刊物名称: CONTEMPORARY ACCOUNTING RESEARCH
• ISSN/ISSBN: 0823-9150
• DOI: 10.1111/1911-3846.12624
• 发表日期: 2021
• 页码: 1068-1113
• 关键词: ceo overconfidence; voluntary disclosure; UPPER ECHELONS; behavioral consistency; equity incentives; CONFERENCE CALLS; earnings; accruals; QUALITY; executives

摘要

We test the association between CFO effort and the quality of public firms' financial information environments. We evaluate this relation using a measure of CFO leisure consumption-specifically, the amount of golf played-as an inverse proxy for effort. We find a negative relation between CFOs' compensation incentives and golf play, suggesting they exert more effort when they have greater incentives to increase firm value. High CFO leisure consumption is associated with lower earnings quality, less accurate earnings guidance, and reduced CFO conference call participation. Additionally, CFO leisure appears to affect external monitors, as it is associated with greater analyst forecast dispersion and increased audit fees. We do not find similar relations when evaluating the amount of golf played by CEOs, suggesting the unique importance of CFO effort in the financial reporting process.