Managerial Ability and Earnings Quality

• 成果类型: Article
• 署名作者: Demerjian, Peter R.; Lev, Baruch; Lewis, Melissa F.; McVay, Sarah E.
• 署名单位: Emory University; New York University; Utah System of Higher Education; University of Utah; University of Washington; University of Washington Seattle
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr-50318
• 发表日期: 2013
• 页码: 463-498
• 关键词: ceo reputation; Cash flows; INTERNAL CONTROL; accruals; determinants; MARKET; style; performance; persistence

摘要

We examine the relation between managerial ability and earnings quality. We find that earnings quality is positively associated with managerial ability. Specifically, more able managers are associated with fewer subsequent restatements, higher earnings and accruals persistence, lower errors in the bad debt provision, and higher quality accrual estimations. The results are consistent with the premise that managers can and do impact the quality of the judgments and estimates used to form earnings.