Political euphoria and corporate disclosures: An investigation of CEO partisan alignment with the president of the United States

• 成果类型: Article
• 署名作者: Arikan, Mazhar; Kara, Mehmet; Masli, Adi; Xi, Yaoyi
• 署名单位: University of Kansas; California State University System; San Diego State University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2022.101552
• 发表日期: 2023
• 关键词: voluntary disclosure; TOP MANAGEMENT; earnings; incentives; conservatism; overconfidence; connections; liability; POLICY; style

摘要

We examine how the partisan alignment between chief executive officers (CEOs) and the United States president influences corporate disclosure outcomes. We predict and find evidence that more partisan-aligned CEOs display greater optimism in their corporate disclosures. CEO partisan alignment is positively associated with the likelihood of issuing a management earnings forecast and issuing overly optimistic forecasts. More partisan -aligned CEOs also use a more optimistic tone in the corporate disclosure and exhibit a lower level of accounting conservatism. Our findings suggest that time-varying beliefs of CEOs formed by the political environment can shape corporate disclosures.(c) 2022 Elsevier B.V. All rights reserved.