被撤回的出版物: The Relationship between Perceived Tone at the Top and Earnings Quality (Retracted article. See vol. 31, pg. 937, 2014)

• 成果类型: Correction; Retracted Publication
• 署名作者: Hunton, James E.; Hoitash, Rani; Thibodeau, Jay C.
• 署名单位: Bentley University
• 刊物名称: CONTEMPORARY ACCOUNTING RESEARCH
• ISSN/ISSBN: 0823-9150
• DOI: 10.1111/j.1911-3846.2011.01100.x
• 发表日期: 2011
• 页码: 1190-+
• 关键词: internal control deficiencies; accrual estimation errors; Sarbanes-Oxley Act; Audit committee; corporate governance; ETHICAL LEADERSHIP; empirical-analysis; decision-making; performance; management

摘要

This study examines the relationship between the strength of an organization's tone at the top and the quality of its reported earnings using a unique combination of survey and archival data related to 123 public companies. Tone at the top is assessed by surveying midlevel financial reporting managers' perceptions about upper management's attitude toward improving internal control quality, making ethical decisions, and meeting or beating earnings targets. The survey data is linked to archival indicators of internal control, corporate governance and earnings quality. The results suggest that tone at the top perceptions are positively associated with higher quality boards, greater CEO age, and lower CEO compensation; interestingly, CFO attributes (age, tenure, and compensation) are not significantly associated with perceived tone at the top. The findings also indicate that tone at the top perceptions and audit committee quality are positively associated with earnings quality. While there is no significant relationship between tone at the top perceptions and SOX Section 404 internal control deficiency disclosures, such perceptions are positively related to Section 302 disclosures, suggesting that tone at the top perceptions increase as upper management voluntarily tests and reports more internal control material weaknesses. This study contributes to extant corporate governance literature by associating a key subjective aspect of the internal control environment (tone at the top perceptions) with archival indicators of earnings quality, supports a recommendation of the COSO (2010) report encouraging auditors to assess top management's integrity, and stimulates future tone at the top research.