CEO Power and Financial Reporting Quality: An Examination from a Restatement Perspective

This study investigates the impact of CEO power on the quality of financial reporting measured by financial restatements. After reviewing the current research on corporate governance and financial reporting quality, this paper extends prior research by combining three streams of research on CEO powe...

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Main Author: Qin, Shiyu
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2019
Online Access:https://eprints.nottingham.ac.uk/57601/
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author Qin, Shiyu
author_facet Qin, Shiyu
author_sort Qin, Shiyu
building Nottingham Research Data Repository
collection Online Access
description This study investigates the impact of CEO power on the quality of financial reporting measured by financial restatements. After reviewing the current research on corporate governance and financial reporting quality, this paper extends prior research by combining three streams of research on CEO power, including CEO tenure, CEO duality, and CEO ownership. I primarily hypothesize that CEO power is positively or negatively related to the financial reporting quality measured by restatements. Using 422 US companies during 2011 and 2015, it is concluded that CEOs who have more vested interests in the company are more likely to restate their financial reporting. CEO tenure and CEO duality may have no significant association with financial reporting quality, while the companies audited by Big4 firms and with high financial leverage are more likely to restate their financial information. Robustness tests using the control variable “loss” rather than “ROA” generate similar results. Keyword: Corporate governance; CEO power; Financial Reporting Quality; Restatements
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format Dissertation (University of Nottingham only)
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institution University of Nottingham Malaysia Campus
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spelling nottingham-576012022-11-30T13:55:18Z https://eprints.nottingham.ac.uk/57601/ CEO Power and Financial Reporting Quality: An Examination from a Restatement Perspective Qin, Shiyu This study investigates the impact of CEO power on the quality of financial reporting measured by financial restatements. After reviewing the current research on corporate governance and financial reporting quality, this paper extends prior research by combining three streams of research on CEO power, including CEO tenure, CEO duality, and CEO ownership. I primarily hypothesize that CEO power is positively or negatively related to the financial reporting quality measured by restatements. Using 422 US companies during 2011 and 2015, it is concluded that CEOs who have more vested interests in the company are more likely to restate their financial reporting. CEO tenure and CEO duality may have no significant association with financial reporting quality, while the companies audited by Big4 firms and with high financial leverage are more likely to restate their financial information. Robustness tests using the control variable “loss” rather than “ROA” generate similar results. Keyword: Corporate governance; CEO power; Financial Reporting Quality; Restatements 2019-12-01 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/57601/1/4341347-N14170-CEO%20Power%20and%20Financial%20Reporting%20Quality%20An%20Examination%20from%20a%20Restatement%20Perspective.pdf Qin, Shiyu (2019) CEO Power and Financial Reporting Quality: An Examination from a Restatement Perspective. [Dissertation (University of Nottingham only)]
spellingShingle Qin, Shiyu
CEO Power and Financial Reporting Quality: An Examination from a Restatement Perspective
title CEO Power and Financial Reporting Quality: An Examination from a Restatement Perspective
title_full CEO Power and Financial Reporting Quality: An Examination from a Restatement Perspective
title_fullStr CEO Power and Financial Reporting Quality: An Examination from a Restatement Perspective
title_full_unstemmed CEO Power and Financial Reporting Quality: An Examination from a Restatement Perspective
title_short CEO Power and Financial Reporting Quality: An Examination from a Restatement Perspective
title_sort ceo power and financial reporting quality: an examination from a restatement perspective
url https://eprints.nottingham.ac.uk/57601/