CEO characteristics and audit report timeliness: do CEO tenure and financial expertise matter?
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| collectionurl | https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection407072 |
| date | 2015-10-07 08:46:17 |
| format | Restricted Document |
| id | 12384 |
| institution | UniSZA |
| internalnotes | Abbott, L.J., Parker, S. and Peters, G.F. (2012), “Internal audit assistance and external audit timeliness”, Auditing: A Journal of Practice & Theory, Vol. 31 No. 4, pp. 3-20. Abdullah, S.N. (2006), “Board composition, audit committee and timeliness of corporate financial reports in Malaysia”, Corporate Ownership & Control, Vol. 4 No. 4, pp. 33-45. Afify, H.A.E. (2009), “Determinants of audit report lag: does implementing corporate governance have any impact? Empirical evidence from Egypt”, Journal of Applied Accounting Research, Vol. 10 No. 1, pp. 56-86. Aier, J.K., Comprix, J., Gunlock, M.T. and Lee, D. (2005), “The financial expertise of CFOs and accounting restatements”, Accounting Horizons, Vol. 19 No. 3, pp. 123-135. Al-Ajmi, J. (2008), “Audit and reporting delays: evidence from an emerging market”, Advances in Accounting, Vol. 24 No. 2, pp. 217-226. Alattar, J.M. and Al-Khater, K. (2007), “An empirical investigation of users’ views on corporate annual reports in Qatar”, International Journal of Commerce and Management, Vol. 17 No. 4, pp. 312-325. Al-Hadi, A., Taylor, G. and Hossain, M. (2015), “Disaggregation, auditor conservatism and implied cost of equity capital: an international evidence from the GCC”, Journal of Multinational Financial Management, Vol. 29 No. 0, pp. 66-98. Ali, A. and Zhang, W. (2013), “CEO tenure and earnings management”, available at: http://dx.doi. org/10.2139/ssrn.2060119 (accessed 10 September 2013). Al-Yahyaee, K.H., Pham, T. and Walter, T. (2010), “Dividend stability in a unique environment”, Managerial Finance, Vol. 36 No. 10, pp. 903-916. Al-Yahyaee, K.H., Pham, T.M. and Walter, T.S. (2011), “The information content of cash dividend announcements in a unique environment”, Journal of Banking & Finance, Vol. 35 No. 3, pp. 606-612. Ashton, R.H., Graul, P.R. and Newton, J.D. (1989), “Audit delay and the timeliness of corporate reporting”, Contemporary Accounting Research, Vol. 5 No. 2, pp. 657-673. Ashton, R.H., Willingham, J.J. and Elliott, R.K. (1987), “An empirical analysis of audit delay”, Journal of Accounting Research, Vol. 25 No. 2, pp. 275-292. Bamber, E.M., Bamber, L.S. and Schoderbek, M.P. (1993), “Audit structure and other determinants of audit report lag: an empirical analysis”, Auditing: A Journal of Practice & Theory, Vol. 12 No. 1, pp. 1-23. Bamber, L.S., John, J. and Wang, I.Y. (2010), “What’s my style? The influence of top managers on voluntary corporate financial disclosure”, Accounting Review, Vol. 85 No. 4, pp. 1131-1162. Batson, N. (2003), “Final report of Neal Batson, court-appointed examiner in re: Enron Corp”, Chapter 11 case no. 01-16034. Baydoun, N., Maguire, W., Ryan, N. and Willett, R. (2013), “Corporate governance in five Arabian Gulf countries”, Managerial Auditing Journal, Vol. 28 No. 1, pp. 7-22. Beasley, M.S. (1996), “An empirical analysis of the relation between the board of directors’ composition and financial statement fraud”, Accounting Review, Vol. 71 No. 4, pp. 443-465. Bergstresser, D. and Philippon, T. (2006), “CEO incentives and earnings management”, Journal of Financial Economics, Vol. 80 No. 3, pp. 511-529. Bertrand, M. and Schoar, A. (2003), “Managing with style: the effect of managers on firm policies”, Quarterly Journal of Economics, Vol. 118 No. 4, pp. 1169-1208. Breeden, R.C. (2003), “Restoring trust”, Report to the Honorable Jed S., Rakoff – The United States District Court for the Southern District of New York – on corporate governance for the future of MCI, New York, NY. Carmichael, D., Ghosh, A. and Lee, H. (2011), “Causes and consequences of abnormally long audit reporting lags”, in Bishop, C.C. (Ed.), American Accounting Association Annual Meeting, 10 August 2011, American Accounting Association, Denver, CO, pp. 1-41. Cheng, Q. and Lo, K. (2006), “Insider trading and voluntary disclosures”, Journal of Accounting Research, Vol. 44 No. 5, pp. 815-848. Cohen, J., Krishnamoorthy, G. and Wright, A.M. (2002), “Corporate governance and the audit process”, Contemporary Accounting Research, Vol. 19 No. 4, pp. 573-594. Cohen, J.R., Krishnamoorthy, G. and Wright, A. (2004), “The corporate governance mosaic and financial reporting quality”, Journal of Accounting Literature, Vol. 23 No. 2004, pp. 87-152. Cullinan, C.P. and Roush, P.B. (2011), “Has the likelihood of appointing a CEO with an accounting/ finance background changed in the post-Sarbanes Oxley era?”, Research in Accounting Regulation, Vol. 23 No. 1, pp. 71-77. Dearborn, D.C. and Simon, H.A. (1958), “Selective perception: a note on the departmental identifications of executives”, Sociometry, Vol. 21 No. 2, pp. 140-144. Demerjian, P.R., Lev, B., Lewis, M.F. and McVay, S.E. (2013), “Managerial ability and earnings quality”, Accounting Review, Vol. 88 No. 2, pp. 463-498. Dhaliwal, D.A.N., Naiker, V.I.C. and Navissi, F. (2010), “The association between accruals quality and the characteristics of accounting experts and mix of expertise on audit committees”, Contemporary Accounting Research, Vol. 27 No. 3, pp. 787-827. Dry, E.K. (2003), “Corporate governance in the sultanate of Oman”, Richmond Journal of Global Law & Business, Vol. 3 No. 1, pp. 45-82. Durfee, D. (2005), “Why more companies are tapping their finance chiefs for CEO”, CFO, pp. 52-60 Dyer, J.C. and McHugh, A.J. (1975), “The timeless of the Australian annual report”, Journal of Accounting Research, Vol. 13 No. 2, pp. 204-219. Efron, B. and Tibshirani, R.J. (1993), An Introduction to the Bootstrap, Chapman and Hall, New York, NY. Ettredge, M.L., Sun, L. and Li, C. (2006), “The impact of SOX section 404 internal control quality assessment on audit delay in the SOX era”, Auditing: A Journal of Practice & Theory, Vol. 25 No. 2, pp. 1-23. Feng, M., Ge, W., Luo, S. and Shevlin, T. (2011), “Why do CFOs become involved in material accounting manipulations?”, Journal of Accounting and Economics, Vol. 51 Nos 1/2, pp. 21-36. Francis, J., Huang, A.H., Rajgopal, S. and Zang, A.Y. (2008), “CEO reputation and earnings quality”, Contemporary Accounting Research, Vol. 25 No. 1, pp. 109-147. Frazier, P.A., Tix, A.P. and Barron, K.E. (2004), “Testing moderator and mediator effects in counseling psychology research”, Journal of Counseling Psychology, Vol. 51 No. 1, pp. 115-134. Gibbins, M., McCracken, S.A. and Salterio, S.E. (2007), “The chief financial officer’s perspective on auditor-client negotiations”, Contemporary Accounting Research, Vol. 24 No. 2, pp. 387-422. Goodwin, J., Ahmed, K. and Heaney, R. (2009), “Corporate governance and the prediction of the impact of AIFRS adoption”, Abacus, Vol. 45 No. 1, pp. 124-145. Hambrick, D.C. and Mason, P.A. (1984), “Upper echelons: the organization as a reflection of its top managers”, The Academy of Management Review, Vol. 9 No. 2, pp. 193-206. Hawkamah (2006), “Hawkamah and capital market authority of the sultanate of oman announce corporate governance partnership”, available at: www.hawkamah.org/news (accessed 6 March 2011). Hazarika, S., Karpoff, J.M. and Nahata, R. (2012), “Internal corporate governance, CEO turnover, and earnings management”, Journal of Financial Economics, Vol. 104 No. 1, pp. 44-69. Hermalin, B.E. and Weisbach, M.S. (1998), “Endogenously chosen boards of directors and their monitoring of the CEO”, American Economic Review, Vol. 88 No. 1, pp. 96-118. Jaggi, B. and Tsui, J. (1999), “Determinants of audit report lag: further evidence from Hong Kong”, Accounting & Business Research, Vol. 30 No. 1, pp. 17-28. Jensen, M.C. and Meckling, W.H. (1976), “Theory of the firm: managerial behavior, agency costs and ownership structure”, Journal of Financial Economics, Vol. 3 No. 4, pp. 305-360. Jiang, F., Zhu, B. and Huang, J. (2013), “CEO’s financial experience and earnings management”, Journal of Multinational Financial Management, Vol. 23 No. 3, pp. 134-145. Jiang, J., Petroni, K.R. and Wang, Y.I. (2010), “CFOs and CEOs: who have the most influence on earnings management?”, Journal of Financial Economics, Vol. 96 No. 3, pp. 513-526. Khasharmeh, H.A. and Aljifri, K. (2010), “The timeliness of annual reports in Bahrain and the United Arab Emirates: an empirical comparative study”, The International Journal of Business and Finance Research, Vol. 4 No. 1, pp. 51-71. Khlif, H. and Samaha, K. (2014), “Internal control quality, Egyptian standards on auditing and external audit delays: evidence from the Egyptian stock exchange”, International Journal of Auditing, Vol. 18 No. 2. Klein, A. (2002), “Audit committee, board of director characteristics, and earnings management”, Journal of Accounting and Economics, Vol. 33 No. 3, pp. 375-400. Knechel, W.R. and Sharma, D.S. (2012), “Auditor-provided nonaudit services and audit effectiveness and efficiency: evidence from pre- and post-SOX audit Report Lags”, Auditing: A Journal of Practice & Theory, Vol. 31 No. 4, pp. 85-114. Knechel, W.R., Sharma, D.S. and Sharma, V.D. (2012), “Non-audit services and knowledge spillovers: evidence from New Zealand”, Journal of Business Finance & Accounting, Vol. 39 Nos 1/2, pp. 60-81. Krishnan, G.V. and Visvanathan, G. (2008), “Does the SOX definition of an accounting expert matter? The association between audit committee directors’ accounting expertise and accounting conservatism”, Contemporary Accounting Research, Vol. 25 No. 3, pp. 827-857. Larcker, D.F. and Rusticus, T.O. (2010), “On the use of instrumental variables in accounting research”, Journal of Accounting and Economics, Vol. 49 No. 3, pp. 186-205. Lee, S.S., Matsunaga, S.R. and Park, C.W. (2012), “Management forecast accuracy and CEO turnover”, Accounting Review, Vol. 87 No. 6, pp. 2095-2122. Leventis, S., Weetman, P. and Caramanis, C. (2005), “Determinants of audit report lag: some evidence from the Athens Stock Exchange”, International Journal of Auditing, Vol. 9 No. 1, pp. 45-58. MacCallum, R.C., Zhang, S., Preacher, K.J. and Rucker, D.D. (2002), “On the practice of dichotomization of quantitative variables”, Psychological Methods, Vol. 7 No. 1, pp. 19-40. Mande, V. and Son, M. (2011), “Do audit delays affect client retention?”, Managerial Auditing Journal, Vol. 26 No. 1, pp. 32-50. Matsunaga, S.R. and Yeung, P.E. (2008), “Evidence on the impact of a CEO’s financial experience on quality of the firm’s financial reports and disclosures”, AAA 2008 Financial Accounting and Reporting Section (FARS) Paper, available at: http://dx.doi.org/10.2139/ssrn.1014097 (accessed 6 March 2011). Michel, J.G. and Hambrick, D.C. (1992), “Diversification posture and top management team characteristics”, Academy of Management Journal, Vol. 35 No. 1, pp. 9-37. Milbourn, T.T. (2003), “CEO reputation and stock-based compensation”, Journal of Financial Economics, Vol. 68 No. 2, pp. 233-262. Mohamad-Nor, M.N., Shafie, R. and Wan-Hussin, W.N. (2010), “Corporate governance and audit report lag in Malaysia”, Asian Academy of Management Journal of Accounting & Finance, Vol. 6 No. 2, pp. 57-84. Munsif, V., Raghunandan, K. and Rama, D.V. (2012), “Internal control reporting and audit report lags: further evidence”, Auditing: A Journal of Practice & Theory, Vol. 31 No. 3, pp. 203-218. Salleh, Z. and Stewart, J. (2012), “The impact of expertise on the mediating role of the audit committee”, Managerial Auditing Journal, Vol. 27 No. 4, pp. 378-402. Salterio, S.E. (2012), “Fifteen years in the trenches: auditor– client negotiations exposed and explored”, Accounting & Finance, Vol. 52 No. 1, pp. 233-286. Schein, E.H. (2004), Organizational Culture and Leadership, 3rd ed., Jossey-Bass, San Francisco, CA. Schrand, C.M. and Zechman, S.L.C. (2012), “Executive overconfidence and the slippery slope to financial misreporting”, Journal of Accounting and Economics, Vol. 53 Nos 1/2, pp. 311-329. Smith, K.G., Smith, K.A., Sims, Jr, H.P., O’Bannon, D.P., Scully, J.A. and Olian, J.D. (1994), “Top management team demography and process: the role of social integration and communication”, Administrative Science Quarterly, Vol. 39 No. 3, pp. 412-438. Vafeas, N. (2009), “Is accounting education valued by the stock market? Evidence from corporate controller appointments”, Contemporary Accounting Research, Vol. 26 No. 4, pp. 1143-1174. Wan-Hussin, W.N. and Bamahros, H.M. (2013), “Do investment in and the sourcing arrangement of the internal audit function affect audit delay?”, Journal of Contemporary Accounting & Economics, Vol. 9 No. 1, pp. 19-32. Weisbach, M.S. (1988), “Outside directors and CEO turnover”, Journal of Financial Economics, Vol. 20, pp. 431-460. Wilson, M. and Wang, L.W. (2010), “Earnings management following chief executive officer changes: the effect of contemporaneous chairperson and chief financial officer appointments”, Accounting & Finance, Vol. 50 No. 2, pp. 447-480. Wooldridge, J.M. (2010), Econometric Analysis of Cross Section and Panel Data, 2nd ed., MIT Press, Cambridge, MA. Zhang, Y. and Wiersema, M.F. (2009), “Stock market reaction to CEO certification: the signaling role of CEO background”, Strategic Management Journal, Vol. 30 No. 7, pp. 693-710. |
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| resourceurl | https://intelek.unisza.edu.my/intelek/pages/view.php?ref=12384 |
| spelling | 12384 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=12384 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection407072 Restricted Document Article Journal UniSZA Unisza unisza image/jpeg inches 96 96 797 1428 24 24 1428x797 2015-10-07 08:46:17 6684-01-FH02-FLAIR-15-03874.jpg UniSZA Private Access CEO characteristics and audit report timeliness: do CEO tenure and financial expertise matter? Managerial Auditing Journal Purpose – This paper aims to hypothesise that demographic characteristics of managers play a significant role in performing their duties amongst which is financial reporting. This study aims to examine whether CEO characteristics, namely, tenure and financial expertise, are associated with audit report timeliness. Design/methodology/approach – Data from companies listed on the Oman capital market between 2007 and 2011 and three proxies for audit report timeliness are used. Findings – CEO tenure and CEOs with financial expertise are reported to be associated with timely audit reports. Supplementary tests also confirmed this result. In addition, it is suggested and documented that there is an interaction effect between CEO tenure and financial expertise concerning the timeliness of audit reports. The use of a two-stage least square analysis also supported the main results. Research limitations/implications – Hypotheses were tested using data from Oman with a relatively small sample size. Therefore, only a few characteristics of the CEO were considered and a more sophisticated approach of testing managers’ effect on company policies was unable to be used. In addition, the generalisability of the study findings should be made carefully. Originality/value – This paper differs from prior studies, in that it extends the audit report timeliness literature by examining whether the CEO tenure and CEOs with financial expertise are associated with audit report timeliness. Findings demonstrate that CEO characteristics are important factors for a timely audit report. 30 8 Emerald Group Publishing Ltd. Emerald Group Publishing Ltd. 998-1022 Abbott, L.J., Parker, S. and Peters, G.F. (2012), “Internal audit assistance and external audit timeliness”, Auditing: A Journal of Practice & Theory, Vol. 31 No. 4, pp. 3-20. Abdullah, S.N. (2006), “Board composition, audit committee and timeliness of corporate financial reports in Malaysia”, Corporate Ownership & Control, Vol. 4 No. 4, pp. 33-45. Afify, H.A.E. (2009), “Determinants of audit report lag: does implementing corporate governance have any impact? Empirical evidence from Egypt”, Journal of Applied Accounting Research, Vol. 10 No. 1, pp. 56-86. Aier, J.K., Comprix, J., Gunlock, M.T. and Lee, D. (2005), “The financial expertise of CFOs and accounting restatements”, Accounting Horizons, Vol. 19 No. 3, pp. 123-135. Al-Ajmi, J. (2008), “Audit and reporting delays: evidence from an emerging market”, Advances in Accounting, Vol. 24 No. 2, pp. 217-226. Alattar, J.M. and Al-Khater, K. (2007), “An empirical investigation of users’ views on corporate annual reports in Qatar”, International Journal of Commerce and Management, Vol. 17 No. 4, pp. 312-325. Al-Hadi, A., Taylor, G. and Hossain, M. (2015), “Disaggregation, auditor conservatism and implied cost of equity capital: an international evidence from the GCC”, Journal of Multinational Financial Management, Vol. 29 No. 0, pp. 66-98. Ali, A. and Zhang, W. (2013), “CEO tenure and earnings management”, available at: http://dx.doi. org/10.2139/ssrn.2060119 (accessed 10 September 2013). Al-Yahyaee, K.H., Pham, T. and Walter, T. (2010), “Dividend stability in a unique environment”, Managerial Finance, Vol. 36 No. 10, pp. 903-916. Al-Yahyaee, K.H., Pham, T.M. and Walter, T.S. (2011), “The information content of cash dividend announcements in a unique environment”, Journal of Banking & Finance, Vol. 35 No. 3, pp. 606-612. Ashton, R.H., Graul, P.R. and Newton, J.D. (1989), “Audit delay and the timeliness of corporate reporting”, Contemporary Accounting Research, Vol. 5 No. 2, pp. 657-673. Ashton, R.H., Willingham, J.J. and Elliott, R.K. (1987), “An empirical analysis of audit delay”, Journal of Accounting Research, Vol. 25 No. 2, pp. 275-292. Bamber, E.M., Bamber, L.S. and Schoderbek, M.P. (1993), “Audit structure and other determinants of audit report lag: an empirical analysis”, Auditing: A Journal of Practice & Theory, Vol. 12 No. 1, pp. 1-23. Bamber, L.S., John, J. and Wang, I.Y. (2010), “What’s my style? The influence of top managers on voluntary corporate financial disclosure”, Accounting Review, Vol. 85 No. 4, pp. 1131-1162. Batson, N. (2003), “Final report of Neal Batson, court-appointed examiner in re: Enron Corp”, Chapter 11 case no. 01-16034. Baydoun, N., Maguire, W., Ryan, N. and Willett, R. (2013), “Corporate governance in five Arabian Gulf countries”, Managerial Auditing Journal, Vol. 28 No. 1, pp. 7-22. Beasley, M.S. (1996), “An empirical analysis of the relation between the board of directors’ composition and financial statement fraud”, Accounting Review, Vol. 71 No. 4, pp. 443-465. Bergstresser, D. and Philippon, T. (2006), “CEO incentives and earnings management”, Journal of Financial Economics, Vol. 80 No. 3, pp. 511-529. Bertrand, M. and Schoar, A. (2003), “Managing with style: the effect of managers on firm policies”, Quarterly Journal of Economics, Vol. 118 No. 4, pp. 1169-1208. Breeden, R.C. (2003), “Restoring trust”, Report to the Honorable Jed S., Rakoff – The United States District Court for the Southern District of New York – on corporate governance for the future of MCI, New York, NY. Carmichael, D., Ghosh, A. and Lee, H. (2011), “Causes and consequences of abnormally long audit reporting lags”, in Bishop, C.C. (Ed.), American Accounting Association Annual Meeting, 10 August 2011, American Accounting Association, Denver, CO, pp. 1-41. Cheng, Q. and Lo, K. (2006), “Insider trading and voluntary disclosures”, Journal of Accounting Research, Vol. 44 No. 5, pp. 815-848. Cohen, J., Krishnamoorthy, G. and Wright, A.M. (2002), “Corporate governance and the audit process”, Contemporary Accounting Research, Vol. 19 No. 4, pp. 573-594. Cohen, J.R., Krishnamoorthy, G. and Wright, A. (2004), “The corporate governance mosaic and financial reporting quality”, Journal of Accounting Literature, Vol. 23 No. 2004, pp. 87-152. Cullinan, C.P. and Roush, P.B. (2011), “Has the likelihood of appointing a CEO with an accounting/ finance background changed in the post-Sarbanes Oxley era?”, Research in Accounting Regulation, Vol. 23 No. 1, pp. 71-77. Dearborn, D.C. and Simon, H.A. (1958), “Selective perception: a note on the departmental identifications of executives”, Sociometry, Vol. 21 No. 2, pp. 140-144. Demerjian, P.R., Lev, B., Lewis, M.F. and McVay, S.E. (2013), “Managerial ability and earnings quality”, Accounting Review, Vol. 88 No. 2, pp. 463-498. Dhaliwal, D.A.N., Naiker, V.I.C. and Navissi, F. (2010), “The association between accruals quality and the characteristics of accounting experts and mix of expertise on audit committees”, Contemporary Accounting Research, Vol. 27 No. 3, pp. 787-827. Dry, E.K. (2003), “Corporate governance in the sultanate of Oman”, Richmond Journal of Global Law & Business, Vol. 3 No. 1, pp. 45-82. Durfee, D. (2005), “Why more companies are tapping their finance chiefs for CEO”, CFO, pp. 52-60 Dyer, J.C. and McHugh, A.J. (1975), “The timeless of the Australian annual report”, Journal of Accounting Research, Vol. 13 No. 2, pp. 204-219. Efron, B. and Tibshirani, R.J. (1993), An Introduction to the Bootstrap, Chapman and Hall, New York, NY. Ettredge, M.L., Sun, L. and Li, C. (2006), “The impact of SOX section 404 internal control quality assessment on audit delay in the SOX era”, Auditing: A Journal of Practice & Theory, Vol. 25 No. 2, pp. 1-23. Feng, M., Ge, W., Luo, S. and Shevlin, T. (2011), “Why do CFOs become involved in material accounting manipulations?”, Journal of Accounting and Economics, Vol. 51 Nos 1/2, pp. 21-36. Francis, J., Huang, A.H., Rajgopal, S. and Zang, A.Y. (2008), “CEO reputation and earnings quality”, Contemporary Accounting Research, Vol. 25 No. 1, pp. 109-147. Frazier, P.A., Tix, A.P. and Barron, K.E. (2004), “Testing moderator and mediator effects in counseling psychology research”, Journal of Counseling Psychology, Vol. 51 No. 1, pp. 115-134. Gibbins, M., McCracken, S.A. and Salterio, S.E. (2007), “The chief financial officer’s perspective on auditor-client negotiations”, Contemporary Accounting Research, Vol. 24 No. 2, pp. 387-422. Goodwin, J., Ahmed, K. and Heaney, R. (2009), “Corporate governance and the prediction of the impact of AIFRS adoption”, Abacus, Vol. 45 No. 1, pp. 124-145. Hambrick, D.C. and Mason, P.A. (1984), “Upper echelons: the organization as a reflection of its top managers”, The Academy of Management Review, Vol. 9 No. 2, pp. 193-206. Hawkamah (2006), “Hawkamah and capital market authority of the sultanate of oman announce corporate governance partnership”, available at: www.hawkamah.org/news (accessed 6 March 2011). Hazarika, S., Karpoff, J.M. and Nahata, R. (2012), “Internal corporate governance, CEO turnover, and earnings management”, Journal of Financial Economics, Vol. 104 No. 1, pp. 44-69. Hermalin, B.E. and Weisbach, M.S. (1998), “Endogenously chosen boards of directors and their monitoring of the CEO”, American Economic Review, Vol. 88 No. 1, pp. 96-118. Jaggi, B. and Tsui, J. (1999), “Determinants of audit report lag: further evidence from Hong Kong”, Accounting & Business Research, Vol. 30 No. 1, pp. 17-28. Jensen, M.C. and Meckling, W.H. (1976), “Theory of the firm: managerial behavior, agency costs and ownership structure”, Journal of Financial Economics, Vol. 3 No. 4, pp. 305-360. Jiang, F., Zhu, B. and Huang, J. (2013), “CEO’s financial experience and earnings management”, Journal of Multinational Financial Management, Vol. 23 No. 3, pp. 134-145. Jiang, J., Petroni, K.R. and Wang, Y.I. (2010), “CFOs and CEOs: who have the most influence on earnings management?”, Journal of Financial Economics, Vol. 96 No. 3, pp. 513-526. Khasharmeh, H.A. and Aljifri, K. (2010), “The timeliness of annual reports in Bahrain and the United Arab Emirates: an empirical comparative study”, The International Journal of Business and Finance Research, Vol. 4 No. 1, pp. 51-71. Khlif, H. and Samaha, K. (2014), “Internal control quality, Egyptian standards on auditing and external audit delays: evidence from the Egyptian stock exchange”, International Journal of Auditing, Vol. 18 No. 2. Klein, A. (2002), “Audit committee, board of director characteristics, and earnings management”, Journal of Accounting and Economics, Vol. 33 No. 3, pp. 375-400. Knechel, W.R. and Sharma, D.S. (2012), “Auditor-provided nonaudit services and audit effectiveness and efficiency: evidence from pre- and post-SOX audit Report Lags”, Auditing: A Journal of Practice & Theory, Vol. 31 No. 4, pp. 85-114. Knechel, W.R., Sharma, D.S. and Sharma, V.D. (2012), “Non-audit services and knowledge spillovers: evidence from New Zealand”, Journal of Business Finance & Accounting, Vol. 39 Nos 1/2, pp. 60-81. Krishnan, G.V. and Visvanathan, G. (2008), “Does the SOX definition of an accounting expert matter? The association between audit committee directors’ accounting expertise and accounting conservatism”, Contemporary Accounting Research, Vol. 25 No. 3, pp. 827-857. Larcker, D.F. and Rusticus, T.O. (2010), “On the use of instrumental variables in accounting research”, Journal of Accounting and Economics, Vol. 49 No. 3, pp. 186-205. Lee, S.S., Matsunaga, S.R. and Park, C.W. (2012), “Management forecast accuracy and CEO turnover”, Accounting Review, Vol. 87 No. 6, pp. 2095-2122. Leventis, S., Weetman, P. and Caramanis, C. (2005), “Determinants of audit report lag: some evidence from the Athens Stock Exchange”, International Journal of Auditing, Vol. 9 No. 1, pp. 45-58. MacCallum, R.C., Zhang, S., Preacher, K.J. and Rucker, D.D. (2002), “On the practice of dichotomization of quantitative variables”, Psychological Methods, Vol. 7 No. 1, pp. 19-40. Mande, V. and Son, M. (2011), “Do audit delays affect client retention?”, Managerial Auditing Journal, Vol. 26 No. 1, pp. 32-50. Matsunaga, S.R. and Yeung, P.E. (2008), “Evidence on the impact of a CEO’s financial experience on quality of the firm’s financial reports and disclosures”, AAA 2008 Financial Accounting and Reporting Section (FARS) Paper, available at: http://dx.doi.org/10.2139/ssrn.1014097 (accessed 6 March 2011). Michel, J.G. and Hambrick, D.C. (1992), “Diversification posture and top management team characteristics”, Academy of Management Journal, Vol. 35 No. 1, pp. 9-37. Milbourn, T.T. (2003), “CEO reputation and stock-based compensation”, Journal of Financial Economics, Vol. 68 No. 2, pp. 233-262. Mohamad-Nor, M.N., Shafie, R. and Wan-Hussin, W.N. (2010), “Corporate governance and audit report lag in Malaysia”, Asian Academy of Management Journal of Accounting & Finance, Vol. 6 No. 2, pp. 57-84. Munsif, V., Raghunandan, K. and Rama, D.V. (2012), “Internal control reporting and audit report lags: further evidence”, Auditing: A Journal of Practice & Theory, Vol. 31 No. 3, pp. 203-218. Salleh, Z. and Stewart, J. (2012), “The impact of expertise on the mediating role of the audit committee”, Managerial Auditing Journal, Vol. 27 No. 4, pp. 378-402. Salterio, S.E. (2012), “Fifteen years in the trenches: auditor– client negotiations exposed and explored”, Accounting & Finance, Vol. 52 No. 1, pp. 233-286. Schein, E.H. (2004), Organizational Culture and Leadership, 3rd ed., Jossey-Bass, San Francisco, CA. Schrand, C.M. and Zechman, S.L.C. (2012), “Executive overconfidence and the slippery slope to financial misreporting”, Journal of Accounting and Economics, Vol. 53 Nos 1/2, pp. 311-329. 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| spellingShingle | CEO characteristics and audit report timeliness: do CEO tenure and financial expertise matter? |
| summary | Purpose – This paper aims to hypothesise that demographic characteristics of managers play a significant role in performing their duties amongst which is financial reporting. This study aims to examine whether CEO characteristics, namely, tenure and financial expertise, are associated with audit report timeliness. Design/methodology/approach – Data from companies listed on the Oman capital market between 2007 and 2011 and three proxies for audit report timeliness are used. Findings – CEO tenure and CEOs with financial expertise are reported to be associated with timely audit reports. Supplementary tests also confirmed this result. In addition, it is suggested and documented that there is an interaction effect between CEO tenure and financial expertise concerning the timeliness of audit reports. The use of a two-stage least square analysis also supported the main results. Research limitations/implications – Hypotheses were tested using data from Oman with a relatively small sample size. Therefore, only a few characteristics of the CEO were considered and a more sophisticated approach of testing managers’ effect on company policies was unable to be used. In addition, the generalisability of the study findings should be made carefully. Originality/value – This paper differs from prior studies, in that it extends the audit report timeliness literature by examining whether the CEO tenure and CEOs with financial expertise are associated with audit report timeliness. Findings demonstrate that CEO characteristics are important factors for a timely audit report. |
| title | CEO characteristics and audit report timeliness: do CEO tenure and financial expertise matter? |
| title_full | CEO characteristics and audit report timeliness: do CEO tenure and financial expertise matter? |
| title_fullStr | CEO characteristics and audit report timeliness: do CEO tenure and financial expertise matter? |
| title_full_unstemmed | CEO characteristics and audit report timeliness: do CEO tenure and financial expertise matter? |
| title_short | CEO characteristics and audit report timeliness: do CEO tenure and financial expertise matter? |
| title_sort | ceo characteristics and audit report timeliness: do ceo tenure and financial expertise matter? |